ForexLive Asia-Pacific FX news wrap: Some give back for Asian currencies

• U.S. lawmaker targets Nvidia chip smuggling to China with new bill
• Taiwan dollar has dropped some of its gains today after Friday and Monday’s surge
• 41% of Hong Kong’s container shipments to North America cancelled for the week of May 12
• Coinbase slams the Federal Reserve in its new TV ad for Bitcoin
• FOMC preview – “Fed confronts lose-lose scenario amid haphazard tariff rollout”
• Trump and Canadian Prime Minister Carney to meet at 11.45 am US Eastern time Tuesday
• China Caixin Services PMI for April 2025 is 50.7 (expected 51.7)
• China says 314 million domestic trips made during May holiday, +6.4% y/y
• Australian March building permits -8.8% m/m (expected -0.6%)
• USD/JPY back above 144.20
• PBOC sets USD/ CNY reference rate for today at 7.2008 (vs. estimate at 7.2518)
• New Zealand data – April ANZ World Commodity Price Index 0% m/m (prior -0.4%)
• USD pops a little higher in Asia morning trade
• UBS sees S&P 500 hitting 5,800 by year-end, citing easing tariffs and Fed cuts
• Australia – Westpac CEO says the ‘Worst is behind us’ across consumer and business stress
• ICYMI – National Australia Bank (NAB) revised its year-end AUD/USD forecast higher to 0.70
• Mentions of “recession” on S&P 500 earnings calls have surged to highest level since 2023
• US equities – Retail investors pile in, but can retail alone ignite a bull market?
• ICYMI: Goldman Sachs reiterated its structural bullish gold view, sees as high as $4,000
• US Vitesse Energy says it’ll cut capex by 32%
• Hong Kong central bank intervenes in the Hong Kong dollar
• EU pledges half bn EUR to lure scientists from Trump cuts – “If you love freedom, come”
• Forexlive Americas FX news wrap 5 May: USD moves lower in up & down trading. S&P falls
• Trump says he’ll announce pharmaceutical tariffs over the next two weeks
• Financial Times reports EU set to make it easier for UK professionals to work in the bloc
• Trump signs order to reduce regulatory barriers to domestic pharmaceutical manufacturing
• Lutnick says a trade deal with Canada is possible, but its ‘really complex’
• Trade ideas thread – Tuesday, 6 May, insightful charts, technical analysis, ideas

It
was a volatile day for Asian currencies, with some losses against the
USD. The Taiwan dollar retraced a little after its epic surge higher
on Friday and Monday. Comments from Central Bank Governor Yang
Chin-Long sought to calm markets and have had some success.

Hong
Kong’s central bank, the Hong Kong Monetary Authority, intervened to
sell HKD at the top end of its band.

USD/JPY
rose from early lows under 143.60 to above 144.25 before giving almost
all back. Its circa 143.80 as I update.

The
pattern of movement was similar across much of major FX. EUR, GBP,
AUD, NZD, CAD all lost ground in early Asia trade against the US
dollar but have retraced those losses.

There
were a few items of interest for US equities:

• Trump says he’ll announce pharmaceutical tariffs over the next two weeks
• a
  U.S. lawmaker will be introducing legislation in coming weeks to
  verify the location of artificial-intelligence chips like those made
  by Nvidia (NVDA) after they are sold, aiming to address reports of
  widespread smuggling of chips into China in violation of U.S. export
  control laws
• The
  U.S. Justice Department has asked a judge to require Google to sell
  two of its businesses that help websites buy, sell and serve online
  advertising after a judge found the company illegally monopolized
  those markets

US
stock futures fell,
S&P 500 e-minis down 0.3%, Nasdaq futures down 0.56% as
I update.

On
the data front:

• China
  Caixin Services PMI for April 2025 remained in expansion at 50.7, but
  at its slowest since September 2024.
• Chinese
  markets reopened after holidays on Thursday, Friday and Monday. The
  People’s Bank of China set the reference rate at it strongest (for
  CNY) since April 7.
• Australian
  building permits and household spending, both for March, were weak.
  Household Spending was its slowest in 6 months.

As
a heads up, Trump and Canadian Prime Minister Carney will meet at 11.45
am US Eastern time on Tuesday. US Commerce Secretary Lutnick said that
while a trade deal with Canada is possible, its really complex. Keep
your expectations low seems to be the (not very quiet) subtext of
this.

Brent oil rose a little after its four year low yesterday.

—

USD/TWD

This article was written by Eamonn Sheridan at www.forexlive.com.