The forex trading headlines for Asia: Friday 25 October, 2013
- RBNZ’s Wheeler radio interview produced many, many comments, including repeating that the RBNZ will have to raise rates sometime in the next year – more here, here and here
- Merkel also made comments, but didn’t budge the euro
Japan inflation data and recap:
- National CPI y/y for September: 1.1% (expected 0.9%, prior was 0.9%)
- National CPI y/y excluding Fresh Food for September: +0.7% (expected 0.7%, prior was 0.8%)
- National CPI excluding Food, Energy y/y for September: 0.0% (expected -0.0% (flat), prior was -0.1%). First time this has not been a negative print since December 2008 … beating deflation?
- Tokyo CPI y/y for October: +0.6% (expected 0.5%, prior was 0.5%)
- Tokyo CPI excluding Fresh Food y/y for October: +0.3% (expected 0.3%, prior was 0.2%)
- Tokyo CPI excluding Food, Energy y/y for October: +0.2% (expected is -0.3%, prior was -0.4%, revised from -0.3%)
- Japan Corporate Service Price Index for September: +0.7% y/y (vs. expected +0.8%)
- China government seems satisfied with yuan appreciation, no plan to intervene unless seen rising too quickly – headline
- Japan’s economy minister Amari: Welcomes union demand for base pay rise, and more here, with comments also from Japan’s finance minister Aso
- China 7-day repo opened at 4.80% vs. 4.79% prior close
- PBOC says it has launched a “Loan Prime Rate” benchmark lending rate
European currencies had a very quiet session, with very small ranges.
USD/JPY couldn’t manage too much either, ticking to early highs at 97.38/40 before a drop to 97.20 and then stabilised around 97.30. A very tight range too.
NZD the biggest mover – it was stable on Wheeler’s comments (see bullets above), but soon started dropping, hitting just below 0.8300 before the selling petered out.
AUD/USD sold off too, with Tokyo interest as sellers noted. Sellers stopped ahead of 0.9580 and the opening prices from China rates market (see bullet, above) saw it back to earlier highs before buyers fizzled out.
ps. Adding these orderboards I posted earlier in the Asian session, which may be helpful until Mike posts his orderboards. Please use them with care as the do tend to go stale.
