ForexLive Asia FX news wrap: MASSIVE Black Monday moves - ForexLive

Forex news for Asia trading Monday 9 March 2020

• Oil news catalysed this Black Monday, and now its dropping further
• RBNZ Governor Orr says watching for signs of market pressures. or credit stress
• WTI crude briefly dips below $30 to fresh low
• Coronavirus - New Zealand extends its border controls for another 7 days
• Gold is in a tough spot here. This isn't an 'in between' market
• Asian stock markets hammered Monday
• It's Black Monday: Here is why markets just flash crashed
• Yen flash crash hits (only this time the market has a reason). What to do next
• There is no limit down in cash forex
• AUD and NZD plunging even further, huge moves here in Asia to open the week 
• PBOC sets USD/ CNY mid-point today at 6.9260 (vs. Friday at 6.9337)
• FX options for expiry at the 10am NY cut on Monday 9 March 2020
• Coronavirus update - as of Sunday Italy total cases 7,375 confirmed and 366 deaths
• Coronavirus update - as of Sunday France total cases 1,126, & 19 deaths
• Bank of Japan Governor Kuroda to answer question in parliament during the Tokyo afternoon
• Australian Treasurer Frydenberg trying to be upbeat on coronavirus impact
• Here's the final Japan Q4 GDP data - worse than the flash
• The market is on the verge of a full-scale panic
• Mainland China coronavirus cases now total 80,735 & deaths 3,119
• US 30 year yield is below 1%
• US equity futures circuit break triggered - ES limit down
• Morgan Stanley expects FOMC to cut 75bps(50 on March 18, 25 in April)
• Japanese officials are pondering a 3-way meeting of the BOJ, MoF, FSA today
• Japan final Q4 GDP published, worse than the preliminary
• North Korea fired 3 projectiles, reports are none landed in Japanese territory
• US FOMC meeting is not until March 18. Time for another emergency rate cut prior?
• Fitch says coronavirus increases risk of deterioration in Australia, NZ bank asset quality
• South Korea says North Korea launched an unidentified projectile
• Norwegian krone falls to its lowest since 1985 (against USD)
• Coronavirus - US states declaring State of Emergency - count now at 8
• Oil futures down 20%+ at opening, price war plunge
• US futures markets to open at the top of the hour
• Australian Treasurer Frydenberg says the fiscal response to coronavirus outbreak is being finalised
• Coronavirus - PIMCO forecasts a US recession
• Trade ideas thread - Monday 9 March 2020
• China warns US may not be able to stick to trade deal given worsening coronavirus outbreak
• ICYMI - North America daylight saving change on March 8
• Here is what’s on the economic calendar in Asia today
• Coronavirus - US State Dept. says US citizens should not travel by cruise ship
• Goldman Sachs "New Oil Order" - slash their Brent forecast to $30 / barrel
• Monday morning opening levels - indicative forex prices 9 March 2020

WEEKEND:

Weekend news from Saudi Arabia that Aramco is lowering oil prices and hugely boosting production came in the wake of the break down in OPEC+ talks when Russia did not agree with proposed output cuts going forward, saying on Friday everyone would be free to pump at will.

The Saudi news hit over the weekend and upon oil futures trade commencing Sunday evening in the US prices were slashed more than 20%. While lower pump prices will act as a stimulus for consumers the devastation of US shale is a huge negative.

The background adding to the oil news is well known:

• fears over a global pandemic
• fears of another credit crisis
• concerns over poor US leadership - the world's strongest economy has leadership in denial of the health crisis

Oil has remained close to its lows for the whole session.

The opening of oil futures brought the opening of US equity index futures trade also. These opened lower and fell heavily even further. As I post S&P500 futures trading on Globex are locked limit down (see this post if you need an explanation of what that means US equity futures circuit break triggered - ES limit down ). Its been a black Monday for equities right across Asia (and further):

• Nikkei 225 index -5.79%
• Hans Seng HK -3.53%
• Shanghai Comp -2.41%
• ASX in Australia  -8.77%
  

US Treasuries rallied further, yield dipped below 1% right across the curve. Even the 30 year bond yield fell under 1%. 

And so to forex. FX trade begins on Monday before any of those markets mentioned above (those who tune in to ForexLive regularly will know this) and the early moves here foreshadowed what was to come for those other markets.

USD/JPY dropped onto the 104 big figure right from the off. AUD and NZD were weaker at the beginning of trade, as was CAD.

Those opening moves continued for the session and accelerated very very hard prior to Tokyo lunch time. USD/JPY fell from the 104 big figure, through 103, through 102 and right down to lows around 101.60 before some rebound.

One thing to be aware of is when markets stop trading due being limit locked (like the US equity futures were) traders will seek to hedge their positions in other markets. FX does not shut for limits, so exacerbated moves can occur as trades spill over into something that is trading  - despite liquidity challenges (big spreads, huge ranges). 

USD/JPY rebounded from sub 102 and hit to 103. Its under there again as I update.

AUD and NZD plunged alongside the collapsing USD/JPY, which took yen crosses down with huge ranges for the session. AUD and NZD yen crosses fell more than 500 points on the day before rebounding at all.

AUD/JPY:

EUR surged, EUR/USD didn't quite get as high as 1.1500 but it was close and has subsequently dropped back a hundred points.

CHF gained, USD/CHF lows were under 0.9190.

As I am posting oil is dropping further. Down 30% now. Yes 30%.

Let's block ads! (Why?)

https://www.forexlive.com/news/!/forexlive-asia-fx-news-9-mar-20200309

2020-03-09 03:57:42Z
CBMiRmh0dHBzOi8vd3d3LmZvcmV4bGl2ZS5jb20vbmV3cy8hL2ZvcmV4bGl2ZS1hc2lhLWZ4LW5ld3MtOS1tYXItMjAyMDAzMDnSAQA

Bagikan Berita Ini