ForexLive Asia FX news wrap: Sideways awaiting trade talks

Forex news for Asia trading Wednesday 9 October 2019  

• Another analyst adds to RBNZ rate cut forecasts
• Wednesday will bring the FOMC September meeting minutes - preview
• UK Times: "‘Many’ Tory MPs to quit if it comes to no‑deal Brexit"
• RBA Governor Lowe is long bananas
• PBOC sets USD/ CNY reference rate for today at 7.0728 (vs. yesterday at 7.0726)
• FX option expiries for the 10am NY cut on Wednesday October 9
• US-China trade tensions will persist through to at least year-end
• Monetary Authority of Singapore meet next week (preview & SGD likely to weaken)
• Heading into US/China trade talks, a quick look at the yuan and how its fallen
• September financing data due from China this week
• Australia - Westpac Consumer Confidence Index : -5.5% m/m (prior -1.7%)
• June 2020 is shaping up as the next Brexit deadline
• Fed Chair Powell spoke Tuesday - highlights ICYMI
• Goldman Sachs on Trump's Powell trashing tweets
• China says US interferes with China's internal affairs
• Fed's Kashkari again: If there was a recession Fed would cut rates to zero then do QE
• More from Fed's Kashkari: Cryptocurrency is a farce
• Federal Reserve's Neel Kashkari on the single best indicator of recession
• UK press says Brexit talks 'face collapse': bad-tempered Boris
• White House says President Trump will not participate in impeachment inquiry
• NZ data - ANZ Truckometer for September, Heavy traffic index +2.4% m/m (prior -4.2%)
• EU's Juncker says No-deal Brexit will lead to ‘decline’ of the UK
• Trade ideas thread - Wednesday 9 October 2019
• Oil - private inventory data shows a larger than was expected build in headline crude inventory
• Irish PM says it is going to be very difficult to get a Brexit deal next week

The Asian session traded small ranges as markets await the recommencement of US/China trade talks beginning on the 10th. On Tuesday the US took action on visa restrictions (see the US wrap for more on this), and early in Asia time the Chinese embassy in Washington issued a terse statement, but the market response was minimal.  Later, the People's Bank of China set the onshore yuan reference rate barely changed, as it has been for weeks now. If this is any sign its likely a positive, though they may be saving the bullets for if talks break down, just guessing though.

Data from Australia today, monthly consumer sentiment from Westpac, was poor indeed. To a more than four year low. AUD went up, natch. ;-)

NZD/USD moved a few points higher on the day also, as did EUR/USD. CAD a little better also while cable is basically flat. 

USD/JPY fell under 107 in the Tokyo morning but has since recovered to be just under 107.20 and little net changed on the session.

Overall a subdued day with little news nor data. 

Don't forget - its FOMC minutes day!