Forex news for Asia trading on Wednesday 9 June 2021
- 3 reasons US stocks are trading near all-time highs, & why confidence is justified
- More on the US law to strengthen US ability to compete with China
- Goldman Sachs on Fed's view that inflation is transitory
- China state planner promises intervention to keep inflation in certain goods down
- China May CPI 1.3% y/y (vs. expected 1.6%) and PPI 9.0% y/y (vs. expected 8.5%)
- US Republican senators said made “a lot of progress” in infrastructure talks
- NZ business survey (preliminary, June): Confidence -0.4% (prior +1.8%) & Activity outlook +29.1% (prior +27.1%)
- PBOC sets USD/ CNY mid-point today at 6.3956 (vs. yesterday at 6.3909)
- UK Chancellor Sunak wants City of London exempt from G& new global minimum tax
- More from RBA's Kent - Looking carefully at home loan lending standards
- AUD traders heads up - Reserve Bank of Australia set to begin to "dismantle" its QE program in July (ex-RBA Edwards)
- Australia - Westpac Consumer Confidence Index for June -5.2% m/m (prior -4.8%)
- US President Biden to meet with UK Prime Minister Johnson Thursday 10 June 2021
- Preview: Bank of Canada could hint at higher inflation
- RBA Kent says expectations do not point to inflation rising above targets in a sustainable way
- Oil data indicated the 3rd consecutive week of US stocks drawdown. Add in these 2 other price-supports also.
- NZ data: Q1 2021 Manufacturing sales volumes +0.4% q/q
- US Senate votes to approve bill to help US compete with China
- New Zealand ANZ Truckometer for May: Heavy Traffic index -4.8% m/m (prior -1.2% m/m)
- Here's a restrained view on the Chinese yuan - more two-way trading, not a sharp downtrend
- NZD/USD targeted at 0.75 in coming months. Model fair value estimate highest in 5 years.
- US President Biden spoke with senators on both sides, urged them to continue negotiations on infrastructure deal
- US Senator says infrastructure talks have halted
- Trade ideas thread - Wednesday 9 June 2021
- Private oil survey data shows headline draw in crude oil inventory
Its been a day of small ranges across major forex pairs with a mi=xed performance against the dollar. EUR/USD is a few point higher, as is cable while there is little change for AUD and NZD during the session so far. USD/JPY is a few tics lower.
Bitcoin once again had some movement, trading as high as just under $34K before dropping back under $33K. El Salvador is pressing ahead with plans to enable its use in transactions.
On the news front, Infrastructure talks in the US were said to have hit a stalemate and halted. Talks nevertheless did continue and will do so still while Biden is attending the G7.
UK Chancellor Sunak is pressing for an exemption from the G7 global minimum tax for City of London finance firms.
The data focus was on Chinese inflation for May, with CPI at 1.3% (from 1.6% in April) and PPI its highest since 2008 at 9.0%. While Chinese consumer inflation thus appears well in control the high PPI will be exported further into global inflation pressures.
Still to come, Bank of Canada policy decision, check out the preview anbove:
