Asia-Pacific FX trading was relatively quiet today, with major forex trades mostly moving sideways. The day saw a mix of news and events, including Israel’s army reporting the killing of a top commander of the Palestinian militant group Islamic Jihad. On the other hand, Elon Musk made headlines by unveiling the Robotaxi at Tesla’s “We, Robot” event.
Meanwhile, in the financial world, there were more Fed speakers lined up for the day, with Logan, Bowman, and Goolsbee all scheduled to speak. China also announced a follow-up stimulus briefing on Monday, following Saturday’s session. The Bank of Korea made a rate cut as expected, reducing the base rate to 3.25% from 3.5%. Additionally, IKEA called for more stimulus in China as its sales dipped.
The People’s Bank of China set the USD/CNY reference rate at 7.0731, slightly lower than the estimated 7.0737. The Bank of Korea’s rate cut was in line with expectations, and Singapore’s central bank was expected to maintain a steady policy in its upcoming meeting on Monday. JP Morgan projected that US inflation would gradually return to the Fed target rate, while ‘Bond king’ Bill Gross suggested that the stock market’s record-setting run might slow down.
Barclays warned of the risk of a $15 jump higher for oil prices, and Trump’s desire to devalue the US dollar could face opposition from the Fed and China. In New Zealand, the food price index rose by 0.5% month-on-month in September, and the manufacturing PMI improved to 46.9. US stocks closed slightly lower after a day of volatile trading, and there were discussions about a potential November Fed pause.
Overall, the day’s trading was relatively subdued, with limited news flow and data. Chinese equities were down in morning trade, while Hong Kong markets were closed for a holiday. Looking ahead, China’s Finance Ministry and Infrastructure Ministry are set to hold press briefings on fiscal policy and economic development, which could impact market sentiment. Musk’s unveiling of the Tesla Robotaxi added some excitement to an otherwise quiet trading day.
