Forex trading headlines for Asia Wednesday 16 July 2014
- New Zealand – Dairy auction overnight …. prices continue their slide
- New Zealand Q2 CPI +0.3% q/q (vs. +0.4% expected and +0.3% prior) and more here (analyst responses)
- Westpac lowers forecast for 2014/15 milk payment to NZ$6/kg and ASB expects Fonterra 2014/15 to lower milk payment to $NZ6.2/kg
- RBA’s Edwards says the Australian dollar looks a bit overvalued
- Federal Reserve Esther George: Says strengthening economy means interest rates should increase
- Rio Tinto Iron-Ore Output, Shipments Surge in First Half of Year
- Australia – Westpac/Melbourne Institute Leading Index for June: +0.1% m/m (prior was +0.1%)
- China data – Q2 GDP +7.5% y/y (vs. expected +7.4%, prior +7.4%)
- China data – industrial production, retail sales, investment
- National Bureau of Statistics spokeman says China is stable and more here
- “Japan poised to revive nuclear power”
- Australia – Westpac: “Reserve Bank’s Jawboning Unlikely to be successful without a Policy Change”
Kiwi and China data were to focus in the session today.
After a weak dairy auction overnight, the New Zealand CPI print came in lower than expected. It all weighed on the NZD throughout the session, with a sharp move below 0.8740 on the inflation data and a grind lower subsequent. It has stabilised around 0.8700 as I write.
AUD/USD was on the weak side, too; but it was the Chinese data that catalysed a move lower. The immediate response to the higher than expected y/y GDP print was a 10 point pop for the AUD, but it came back within minutes to break new lows for the session and continue on down to dip under 0.9340 before it, too stabilised. While the headline GDP figure was better (and the q/q change was a very good beat, +2% vs. +1.8% expected), retail sales data was slightly under expected. Whatever it was, though, the AUD continued its fall after falling in the overnight.
The AUD and NZD moves were the bright spot in the session. USD/JPY did manage to grind out a few more points higher, but it did little more than a 10 point gain; its on its session highs as I type.
EUR/USD, GBP/USD and USD/CHF were all very range bound indeed, and tight ranges at that. The USD very marginally up against all three in the session (VERY marginally).
Bullwinkle didn’t manage to pull a rabbit out of the hat, again. I’m sorry, I don’t know what made me think of moose … the CAD was quietly rangebound too.
Gold got a few dollars off its overnight lows. Oil eked out a gain of a few cents.
