Forex news for Asia trading Wednesday 27 November 2019
The Australian dollar dropped after a narrow range sort of session on a change of forecast from Westpac:
- Westpac says RBA to cut cash rate to 0.25 by June 2020, QE to follow
- Westpac’s call for two more RBA rate cuts then QE – and where to for the AUD
- AUD drops as news of QE expected from the RBA hits
AUD/USD had been barely moving on the day but from above 0.6790 it fell toward 0.6775. While not a big move it was a good-sized one compared with what was happening most elsewhere in FX.
The other item attracting the most interest today was the data from China, which showed industrial profits down for their largest drop since 2011, a huge -9.9% y/y for October (see bullets above). This should add to the calls for more stimulus from China. FX response was minimal. the again, it was minimal to everything on the day here.
EUR/USD has fallen away 15 or so points from its late US-time high while USD/JPY edged a wee bit higher. USD/CHF is a little higher also.
Cable is just a tad weaker on the session also. There is polling due from the UK on Wednesday evening to be aware of. If the parties move closer together it’ll be a negative for GBP. Some enhanced possibility for a clear win would, on the other hand, be a positive.