FX Letter:
NZD pairs generally peaked higher after RBNZ held rates and did not deliver the dovish press conference that many expected. It increases the potential that (for the time being at least) 1% is the bottom, although a relaxation bias remains within the explanation.
All NZD pairs have exceeded their 10-day ATR & # 39; s, and the daily range of EUR / NZD extended over their typical ranges. NZD pairs may now be susceptible to a small mean reversal, but there is still potential for NZD strength to expand further, given the high expectations for a meeting cut.
Trump said he will raise rates on China if they fail to close a phase one deal, which prompts them to touch a 6-day high and Asian currencies follow the lower.
Japanese producer prices fell by -0.4% yoy, so estimates of -0.3% are missing. While monthly prices rose 1.2% for October, it is probably related to the ongoing sales tax increase – because this is the sharpest monthly peak since 2014 when sales tax was last increased.
Australian wages did not meet expectations at 2.2% yo-yo versus 2.3% yo-yo, although monthly hit expectations were 0.5%. However, weaker wages mean weak inflation and a lower cash rate, at a time when RBA would really like to see higher wages to compensate for the high debt / savings ratio.
Asian money indices% change
Stock overview:
A sea of ??red is the theme for Asian stock markets today, caused by a contagion effect from Hong Kong, where it plummeted by nearly -2.00% during today's Asian mid-session, on track for its worst weekly performance since mid-August 2019..
Tensions continue to flare up in Hong Kong, where anti-government protesters have changed tactics to disrupt the city's transportation system on weekdays and have turned Hong Kong's universities into a "war zone" with opponents against the police. Protesters have also urged the public to conduct another flash-mob style demonstration in Central Hong Kong's financial hub for the third day at noon.
The worst-performing stocks on the Hong Kong stock market are property-related stocks; New World Development, Sino Land, Wharf Real Estate Investment with -5.1%, -3.72% and -3.53% respectively.
Alibaba (NYSE :), a China-based internet giant has received legal approval for a secondary listing of its shares on the Hong Kong Stock Exchange with the aim of selling up to HKD117 billion worth of new shares. With a valuation of HKD117 billion, the IPO of Alibaba will be the third largest in the history of Hong Kong since 1986. Alibaba is expected to trade in Hong Kong in the week of November 25.
Yesterday's US President Trump's speech at The Economic Club of New York gives no hints about the progress of the "Phase One" US-China trade agreement that gave a reason for profitable activities on Japan & # 39; s, the best performing in the last 4 weeks. It has fallen by around -0.90%.
E-Mini futures fell by -0.30% in today's Asian session and break below the US session of 3084 yesterday in the S&P 500 cash index.
Next
1st day of Fed Chair Powell testimony to Congress at 1600 GMT, where traders should pay attention to all insights given to the current state of the repo market, given the recent ongoing "not-QE" injection implemented by the Fed. Also about the current health of the US economy to gauge the possibility of a 4th interest rate cut.
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