Forex news for trading in Asia Monday August 31st, 2020
Some minor currency fluctuations on the session here and some notable news over the weekend and during the trading session here on Monday.
The head of the US FDA has said he is ready to speed up vaccine approval outside of normal scientific testing and procedures if the benefits outweigh the costs (which the normal process is supposed to show, but voila) ). In China, a vaccine candidate has been approved for emergency use. These two elements underpinned the sentiment at the start of the session.
On the other side of the coronavirus concerns, the French health ministry said the skyrocketing number of cases was “ very worrying ”.
Japanese stock markets were wowed by news that Warren Buffett’s Berkshire Hathaway had acquired a 5% stake in each of Japan’s 5 largest trading companies, for a total value of around $ 6 billion.
On the data front, the focus was on China’s official August PMIs, which have remained stable to better and firmly expanding. The manufacturing measure slightly missed expectations, possibly due to the widespread effects of flooding during the month. The non-manufacturing sector was more encouraging, however, indicating an improvement in the consumer sector.
While in China, the country launched a second separate investigation into imports of Australian wine – a countervailing duty investigation in addition to the anti-dumping investigation announced a few weeks ago. This second investigation is not too surprising, the Australian Minister of Commerce had been thinking about its likelihood when the original investigation was announced by China.
Australian data (for the second quarter) today showed the expected decline in inventories due to the buying panic before the country’s foreclosure, also that corporate profits were higher than expected (supported by support from the government) and that wages / salaries have fallen in all states. .
The net change in currencies was small despite some reasonably sized swings (for Asian trade) during the session. Gold was confined to a small range only.
The USD / JPY moved over 50 points from its very early low in trade, breaking above 105.75 on the backs of some stop loss traders but not supporting the level. The race for the soon-to-vacant prime minister’s post is in full swing in Japan, Cabinet Secretary Suga tossed his hat into the ring. He just might be the most stable candidate for the markets – Suga speaks regularly to the media and markets in his current role and is no stranger.