The forex trading headlines for Asia trading today, Friday July 26
Japan inflation figures released today:
- Japan National CPI y/y for June: +0.2% , expected +0.1%, prior -0.3%
- Japan National CPI Ex-Fresh Food y/y for June: +0.4% expected at +0.3%, prior 0.0%
- Japan National CPI Ex Food, & Energy y/y for June: -0.2%, expected -0.3%, prior -0.4%
- Tokyo CPI y/y for July (note, Tokyo CPI figures are available earlier than national CPI figures): +0.4% , expected 0.2%, prior -0.0%
- Tokyo CPI Ex-Fresh Food y/y for July: +0.3% expected 0.3%, prior 0.2%
- Tokyo CPI Excluding Food & Energy y/y for July: -0.4% , expected-0.3%, prior -0.4%
- More on Japan’s CPI release – signs of the retreat of deflation?
Followed by a barrage of comments from Japanese authorities (more comments at each link):
- Japan’s economy minister Amari: Prices increasing, consumption-driven economic recovery
- And more from Amari: Tax hike decision needed for mid-term fiscal plan
- Japan’s finance minister Aso: Wants to make final decision on sales tax in Autumn
- Australian Treasurer Bowen: Intention to return to budget surplus in 2016/17, as the government faces a forecast revenue shortfall of more than $20 billion over the next 4 years
- There might be an announcement of an Australian election this weekend (might be, probably not, just a heads up)
- China People’s Daily cites researcher: Says large fiscal stimulus unnecessary
- People’s Bank of China governor Zhou Xiaochuan: : Says China has big downward economic pressure, and that the PBOC is to steadily promote market oriented interest rate reform
- UBS to pay Fannie May and Freddie Mac $885m to settle claims
- Singapore residential properties are expected to moderate because of the housing curbs
After the USD sell-off in Europe and the US overnight it was a day of consolidation (and early, boozy lunches) in Asia today. EUR/USD and GBP/USD both approached their highs, as did AUD/USD and NZD/USD. All four of them backed away though, none managing a move to new highs as of writing.
USD/CHF and USD/JPY approached their lows, USD/CHF failed to break them but USD/JPY carried the flag, putting in lower lows from overnight. Earlier, USD/JPY had plunged below 99 in late North American trading, finding support just below 99.00 and bouncing back to 99.35/40. It chopped in a range 10/40 before falling to the already mentioned new lows for the session. CPI figures and the barrage of comments (see bullets above) only being met with more yen buying through the day.