Home News ForexLive Asia FX news wrap: Trump says he feels trade talks will be successful – ForexLive

ForexLive Asia FX news wrap: Trump says he feels trade talks will be successful – ForexLive

3 min read

Forex news for Asia trading Tuesday, May 14 2019

After the rout on US stock markets on Monday US President Trump tried to stem the bleeding today. He said he expects to know how the talks will turn out on 3 to 4 weeks and feels they will be very successful. Feels. On the evidence we have seen so far, accelerating tit for tat tariffs, while I hope he is correct, I suspect not.

Nevertheless, his comment served to provide some support. Overnight equity futures on Globex recovered some ground.  ‘Risk’ currencies had been seeing some stabilisation and they further improved after the remarks.

NZD was a good gainer, with NZD/USD from lows just under 0.6565 to above 0.6590 briefly. USD/JPY saw early Japan lows under 109.20 in the session before rebounding 40+ points.

AUD managed to recover some ground also. Data today (NAB business survey) was not supportive, especially the employment sub-index that fell sharply on the month. EUR, GBP, CAD – all showed minor gains against the US dollar also.

Regional stock markets here opened lower, following the lead of the trashing on Wall Street and have not managed to struggle into the green on the session so far.

The PBOC set the mid rate for USD/CNY well above 6.8 today. Also today it became expensive to short the yuan, with one-month HIBOR moving to its highest for the year, overnight to its highest since late March. While the PBOC has let the yuan slide they will not want a weak currency to be an entrenched expectation, fearing faster capital outflow. Offshore yuan managed to inch claw a few points back on the session. Check the chart out for context though. 

Still to come:

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