Asia FX Handover – Trump Set To Ban Huawei | China Continues To Slow

A summary of news and snapshot of moves from today’s Asia session.

  • Trump is expected to sign an executive order banning US companies using Huawei equipment, in a move which is likely to irk China. This placed AUD and NZD as the weakest majors (where they remain) and the usual flow into CHF and JPY began, seeing AUD/JPY break lower from a symmetrical triangle.
  • AUD/USD hit fresh lows on the back of soft data, both domestically and from China. Consumer confidence and wage growth data missed the mark ahead of tomorrow’s key employment set. China’s worrisome data set saw retail sales plunge to their lowest annual rate since June 2003 and industrial production its lowest since 1990.
  • Chinese equities led the way higher in what appears to be the beginning of a relief rally from the lows (aka technical correction). Futures and global benchmark indices are mostly trading in the black.

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