Asia Market Update: Cautious trading generally seen in Asia ahead of today’s Fed decision; CNH extends gain amid another stronger yuan fixing.

General Trend:

- Japanese equities opened almost flat; Transports and financials trade generally lower, Topix Information/Communication index rises

- Consumer, Resource and Financial firms are among the gainers in Australia

- HK Financials index declines, Property and Tech indices rise

- Shanghai Composite declined by ~0.2% during morning session, Consumer and IT firms declined

- Taiwan Semi rises after Apple event

- China’s 5-yr yield continued to decline after recent MLF operation; China sold 1 and 10-year bonds at lower than expected yields

- New Zealand Q2 GDP data due on Thurs. (Sept 17th), along with Australia’s Aug jobs data

- BoJ is also due to conclude 2-day policy meeting tomorrow

Headlines/Economic Data

Australia/New Zealand

- ASX 200 opened +0.2%

- (AU) Australia Aug Westpac Leading Index M/M: 0.5% v 0.1% prior

- (AU) Australia sells A$2.0B v A$2.0B indicated in 1.50% June 2031 bonds, avg yield: 0.9395%, bid to cover 4.9x

- (AU) Reserve Bank of Australia (RBA) Skips offering to buy bonds v skips prior (3 straight skips)

- (AU) Victoria state (Australia) reports 42 additional coronavirus cases v 42 prior

- (NZ) New Zealand Treasury publishes Pre-election Fiscal Update: Cuts 2021 GDP growth forecast from +0.6% to -0.5%; Forecasts Q2 GDP Q/Q -16.0% (-12.5%e); Cuts FY21 borrowings from NZ$60B to NZ$50B; To issue new 2028 bond before the end of 2020; The initial economic impact of COVID-19, while still large, has been less severe than anticipated in the Budget Update

- (NZ) New Zealand Q2 Current Account (NZ$): 1.8B v 0.7Be; Decline in imports drove current account surplus.

- (NZ) Reserve Bank of New Zealand (RBNZ) buys NZ$460M v NZ$440M prior in government bonds as part of QE v NZ$460M sought

China/Hong Kong

- Hang Seng opened +0.4%, Shanghai Composite -0.1%

- (CN) China PBOC sets Yuan reference rate: 6.7825 v 6.8222 prior (Strongest yuan fix since May 9th, 2019)

- (CN) China has raised the attendance cap for movie theaters to 75% of maximum seating capacity (from 50% currently), effective as of Sept 25th - Xinhua

- SMIC [981.HK]: Applies to renew license from the US to supply Huawei – SCMP

- (CN) WTO rules that US tariffs on China violate trade rules; recommends US brings its measures into conformity

- (CN) US Trade Rep Lighthizer: WTO decision has no effect on US-China 'Phase 1' trade agreement

- (US) Pres Trump: I'm not aware of today's WTO ruling but will take a look at it; I 'may do something' about the WTO after today's ruling

- Reported that CFIUS reviewed TikTok deal with Oracle, but did not provide recommendations

- (CN) US Treasury Dept blacklisted Union Development Group Co (China state-owned firm), relates to China's dealings in Cambodia – press

- (US) Department of Justice (DOJ): Will announce charges and arrests in Computer intrusion campaigns in regards to China on Sept 16th (Weds); a news conference is expected to be held at 11 a.m. ET (1500 GMT) - Statement

- (CN) China PBoC Open Market Operation (OMO): Injects CNY120B in 7-day reverse repos v skips 7-day reverse repos; Net drain CNY0B v Net drain CNY170B prior

-(CN) China NDRC (State Planner): Approved 6 Fixed asset investment projects totaling CNY88.2B in Aug


- Nikkei225 opened -0.1%

- Sony [6758.JP]: Said press report on sales forecasts is false

- (JP) Japan Lower House formally elects Yoshihide Suga (LDP party leader) as its new PM; as expected

- (JP) Japan Aug Trade Balance: +¥248.3B v -¥37.5Be; Adjusted Trade Balance: +¥350.6B v -¥34.8B prior; Exports to China +5.1% y/y


- Kospi opened -0.1%

- (KR) South Korea confirms 113 additional coronavirus cases v 106 prior; 0 Additional deaths (14 straight days of <200 cases)

North America

- FedEx [FDX] rose by over 8% in afterhours trading after quarterly results

- Facebook [FB]: FTC reportedly has been investigating Facebook acquisition and treatment of App Developers, May be considering Anti-trust lawsuit by end of 2020 – Press [Reminder: CEO Zuckerberg reportedly had been questioned by the FTC amid an antitrust investigation (Politico from Aug 20th)]

- (US) Group of House Democrats and Republicans said to put together $1.52T stimulus plan to be unveiled on Tuesday, Sept 15th – press

- (US) House Maj Leader Hoyer (D-MD): going below $2T on coronavirus stimulus would not be responsible

Levels as of 1:20 ET

- Nikkei 225, flat, ASX 200 +1% , Hang Seng -0.2%; Shanghai Composite -0.2% ; Kospi -0.3%

- Equity S&P500 Futures: +0.1%; Nasdaq100 +0.2%, Dax -0.1%; FTSE100 -1.2%

- EUR 1.1853-1.1828 ; JPY 105.44-105.25 ; AUD 0.7323-0.7287 ;NZD 0.6732-0.6702

- Gold +0.2% at $1,969/oz; Crude Oil +1.8% at $38.97/brl; Copper +0.2% at $3.0623/lb

All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD challenges weekly lows after mixed Durable Goods Orders

US Durable Goods Orders were up a measly 0.4% in August, missing expectations of 1.0%, although Nondefense Capital Goods Orders ex Aircraft jumped 1.8%. Equities bounce from lows, but the dollar maintains its strength.


GBP/USD loses 1.2700 as the dollar keeps rallying

GBP/USD approaches its weekly low at 1.2674 as demand for the American currency extends into the final trading session of the week. Hopes for a UK trade deal with the EU doing little for Sterling.


Gold: Finally some rest bite as XAU/USD holds at $1865 per ounce

It has not been the best week for the gold bugs as the yellow metal has fallen 4.36% since Monday. At the end of the week, the price has started to consolidate at the USD 1865 per ounce area. 

Gold News

Breaking: ​​​​​​​The IRS makes it hard to pretend you don’t have Bitcoin

The cryptocurrency holders might have a hard time trying to hide their Bitcoins or other digital assets. IRS considers changing the standard 1040 form by including a bold question on the front page:  At any time during 2020, did you sell, receive, send, exchange, or otherwise acquire any financial interest in any virtual currency? 

Read more

WTI moves back to flat and once again trades above $40 per barrel

It has been a mixed Friday for WTI as the price is moving sideways heading into the weekend. All of the excitement was last week when the OPEC+ JMMC decided to keep output levels at their current rate until December.

Oil News

Forex Majors