ForexLive Asia FX news wrap: Subdued FX ranges to start the week here

Forex news for Asia trading Monday 17 August 2020 

• China's state planner says power consumption up 2.3% y/y, & approves more than 10 investment projects
• Risk for EUR/USD is for a drop to at least 1.16
• Japan press reports that PM Abe hospital visit is for a regular check up
• PBOC offers 700bn yuan in a medium term lending facility
• PBOC sets USD/ CNY reference rate for today at 6.9362 (vs. Friday at 6.9405)
• Malaysia has detected a strain of the new coronavirus that’s been found to be 10 times more infectious
• New Zealand has 9 new confirmed COVID-19 cases today
• FX option expiries for Monday August 17 at the 10am NY cut
• ASB change their RBNZ forecast - OCR to be cut by 75bps to -0.50% by early 2021
• Japan economy minister Nishimura pledges further government support for the economy
• NZD loses some ground against the AUD early in the new FX week
• 'Game changer' COVID-19 test approved by the US FDA over the weekend
• Japan GDP preliminary for Q2 -7.8% q/q (vs. expected -7.5%)
• Weekend Trump comments - says Alibaba could be next in sights once TikTok dealt with
• Eurozone PMI data due this week should give more info on the rebound
• UK data - Rightmove house prices for August: +4.6% y/y (prior 3.7%)
• Australia - Victoria state 282 new cases of coronavirus reported today
• New Zealand services PMI for July 54.3 (prior 54.1)
• US Congress House to be recalled to protect Postal Service from meddling
• NZD little changed after election postponement announcement
• Coronavirus - NZ election postponed from September 19 to October 17
• France - new coronavirus cases more than 3,000 for a second consecutive day
• The UK is aiming for an 'in principle' trade agreement with Japan by the end of this month
• Trade ideas thread - Monday 17 August 2020
• Coronavirus - Italy to shut nightclubs, compulsory outdoor mask order
• German fin min Scholtz has proposed a EUR10bn job subsidy extension plan
• Weekend news - Putin offers Lukashenko military support to counter Belarus protests
• Weekend - China has granted a patent to a domestically developed COVID-19 vaccine
• Monday morning open levels - indicative forex prices -
• Trump has given Chinese firm ByteDance 90 days to offload its TikTok app
• Today is 49 years since Bretton Woods collapsed. Why it matters more than ever

Forex ranges opened the week here in the Monday Asia session by maintaining subdued ranges although with a little net US dollar weakness. Buying of AUD/NZD was prevalent earlier in the session (I posted on the background to this which is a more accommodative RBNZ than RBA, better Australian commodity prices - more in the post) but found little direct evident catalyst for the early move. NZ PM Ardern did announce a delay to the election (4 weeks), that was about the only fresh news item of any note about. As the session progressed the AUD/NZD bid dissipated somewhat, the cross retracing some its earlier move.

USD/JPY is barely changed on the session after a small range swing. EUR/USD has ticked a few points higher, as has cable.

Japanese advance Q2 GDP data was reported, a 7.8% contraction was recorded in the quarter. It was worse than expected. Other developed economies have fared similarly.

On the COVID-19 news front, 

• a Chinese firm have been granted a patent on their vaccine work so far,

• Italy has shut nightclubs
• New confirmed cases in France were over 3,000 both weekend days
• The US FDA have approved a new quicker and simpler test 
• Malaysia have found the 10-times more infectious virus strain locally

AUD/NZD: