The forex trading headlines for Asia trading today, Friday June 21
- Multiple comments from Eurozone ministers after their Luxembourg meeting today, where Eurozone ministers agree on government contributions to bank bailouts (20% from governments, ESM fund to provide 80%) and more
- Schaeuble: Germany not delaying ECB bank supervision & also mentioned Cyprus
- Dijsselbloem on Cyprus, Greece and the direct bank recp. fund
- Rehn says the link between banks and sovereigns needs to be ‘diluted’ (and more)
- The IMF says that if the review of Greece’s bailout program is concluded by end of July, as expected, no financing problems will arise, Dijsselbloem said the same thing
- Regling said Spain made it clear that it wont ask for more bank aid
- French national statistics institute Insee said German activity should pull the Eurozone economy out of recession in the second quarter
- China repo rates eased somewhat today
- Japan’s Amari said the government is to discuss whether to lower the corporate tax rate (and more from Amari)
- But finance minister Aso said that capex tax cuts will help firms more than a corporate tax cut (and also that Japan aims to unveil fiscal reform plans by mid-year)
- New Zealand: ANZ Job Advertisements for May -1.7% m/m (vs. +0.8% prior)
- New Zealand: ANZ Consumer Confidence for June: +0.2% to 123.9 (vs. prior +3.8% to 123.7)
- From the CME, Gold and platinum futures margins raised, effective after the close of business on Friday, June 21
A quiet session to complete the week in Asia. Euro finally came to the party and moved, it traded 50 points higher from its session lows, running into resistance at 1.3245/50.
AUD/USD continued its rally from overnight lows, popping to 0.9245/50 as news of an easing of the China cash crunch crossed screens (see bullet, above), but ran into sellers there (intra-day AUD longs used the good news to sell into).
NZD/USD, too climbed nearly a big figure from its overnight lows before finding resistance just above 0.7800.
USD/JPY had dipped below 97.50 in new York and sat just below there early in the Asian morning efore testing short-term support at 97.20. It fell again later, dipping to 96.90 for support and then chopping sideways for the balance of the session in a 40 point range.
