ForexLive Asia-Pacific FX news wrap: No ground war in Gaza yet. Oil, gold, CHF give back

• China to hold its financial conference focused on economy, debt risks
• Goldman Sachs says FX outflows from China in September hit US$75 bln, biggest since 2016
• Australian PM Albanese confirms he will meet with Communist Party Chair Xi in China in Nov
• Chinese police raided the Shanghai offices of a London-based firm, detained an executive
• China’s CSI300 benchmark blue chip index has hit its lowest since February 2019
• Deutsche Bank slash their EUR/USD year end forecast to 1.07 (from 1.15)
• China tax and other officials have launched an investigation into iPhone maker FoxConn
• PBOC sets USD/ CNY reference rate for today at 7.1792 (vs. estimate at 7.3109)
• AUD traders – Reserve Bank of Australia Governor Bullock speaks Tuesday on Monetary Policy
• Japan’s ruling LDP won 1 seat and lost 1 seat in Sunday’s Diet by-elections
• China’s envoy to the Middle East on Gaza, says rising risk of large-scale ground conflict
• Morgan Stanley says “crypto winter” may be in the past. Optimistic for an April 24 halving
• Bank of America is wary of crowded USD long trade, but still see USD/JPY to 155
• Future RBA interest rate hikes “finely balanced”, and here are 3 other risks to Australia
• ICYMI – Fed’s FSR cites concerns on persistent inflation, and commercial real estate
• Reminder – Hong Kong and New Zealand markets are closed for holidays on Monday, 23 October
• Middle East update – no ground moves into Gaza, but air strikes continue (Syria hits also)
• Very early Asian trade took USD/JPY briefly above 150.10
• FT reports that the EU is considering a gas price cap extension to avert winter crisis
• Weekend: Russia’s Gazprom to supply extra gas to Hungary and China over the coming winter
• Trade ideas thread – Monday, 23 October 2023
• Monday morning open levels – indicative forex prices – 23 October 2023
• Some of the technical levels in play that will shape the bias into the new trading week
• Weekly Market Outlook (23-27 October)
• No sign of Gaza ground war. Emergency aid truck convoy enters Gaza.
• Newsquawk Week Ahead: EZ/UK flash PMIs, ECB, BoC, US PCE, Australian CPI
• Forexlive Americas FX news wrap: Yields turn lower but stocks battered anyway. FX flat

Forex
news for Asian trading on
Monday,
23 October 2023

War
continued in the Middle East with continuing air strikes into Gaza,
Hezbollah attacks from Lebanon and missile strikes on two airports in
Syria. In more encouraging news, truck convoys entered Gaza with some
aid supplies. The lack of serious escalation provided some relief for
markets, seeing some flows back into ‘risk’ (US equity index
futures popped on the Globex reopen for the week, for example) while
some of the premium was sapped from oil, gold and the CHF.

USD/JPY
popped above 150.10 very briefly in very early trade in Asia on
Monday. The pop was almost instantly reversed and subsequently the
pair have stalled back around 149.80/90 or so for most of the
session. As I post the pair is circa 149.93.

EUR/USD
dribbled a little lower, in a small range.

Chinese
equities remained under pressure.

Hong
Kong and New Zealand markets were closed for a holiday Monday.

Bitcoin traded higher also: