The forex trading headlines for Asia Tuesday 28 January 2014
- China’s trade numbers set to come under renewed scrutiny – discrepancy between Hong Kong and Chinese figures
- New Zealand PM Key: NZ will be in budget surplus in 2015
- Japan’s economy minister Amari: There is concern that FX moves may push up fuel costs Here’s what he’s talking about
- China PBOC injects 150 bn yuan via 14-day reverse repos today
- Australia – NAB business confidence and conditions improve in December
- HSBC – economy is rebalancing, employment will follow, the RBA easing cycle “is done”
- Does the PBOC have “no intention” to tighten monetary policy?
- Japan – Corporate Service Price Index for December: +1.3% y/y (expected +1.1%)
- Australia – Conference board leading index for November: +0.2% (prior* was +0.5%)
- Nikkei news headline: Japan ruling LDP to start talks on lower corporate tax rate in February
- Japan’s finance minister Aso: Must consider fiscal situation when discussing corporate tax cut
- China – Zhu Changhong, chief investment officer of the State Administration of Foreign Exchange, is reported to have resigned
- JPMorgan says to Sell AUD on China credit crisis
- Moody’s: Australian high-yield miners face execution challenges, will pressure miners over 12-18 months
- Overvalued kiwi dollar ‘a concern’ says New Zealand Finance Minister Bill English
- Apple earnings $14.50 (expected $14.07) and revenue is $57.6bn (expected $57.4bn)
- Italy finance minister: No risk of delation
- Japan PM Abe: Not a simple matter to give up nuclear power
- Japan – January Small Business Confidence: 51.3 (vs. 51.1 prior)
GBP/USD was a mover today, absorbing the sellers that were holding it around and just below 1.6580, taking it above 1.6600. The higher cable pop fed through to slightly higher GBP on the crosses. UK GDP is due at 0930GMT …. some are attributing the rising cable to expectations of a better than expected result.
EUR/USD had a very quiet session indeed.
USD/CHF … see comment for EUR/USD.
The yen was choppy in a small range. USD/JPY traded above 102.75 early in Asia before falling back to 102.50. USD/JPY traded 52-75 for the balance of the session, choppy but going nowhere (as of writing).
AUD/USD ticked higher from session lows going into the NAB business confidence and conditions release (see bullets, above) and was marked higher on their hitting the screens. It settled around 0.8760 for an hour or so and then continued higher to 0.8790 on further short covering.
NZD/USD found support around and ahead of 0.8220 (again) and produced a nice rally on the day to above 0.8270.
