Forex trading headlines for Asia Monday 21 July 2014
Weekend:
- Japan government to cap new bond issuance for next fiscal year’s budget at 41.3 tln yen
- Ongoing Ukraine, Gaza headlines to impact on markets
Monday:
- German Finance Ministry releases monthly report for June
- Kerry reiterates US concern over risk of “further escalation” in Gaza
- New Zealand – Net migration for June, +4270 (prior was +3960)
- UK – Rightmove House Price Index for July: -0.8% m/m (prior was +0.1%)
- Shanghai Securities News: China growth may stabilze at 6% as investment cools
- China Securities Journal: Mini-stimulus cannot provide long term for economic growth, risks cannot be underestimated
- China Financial News: Not realistic to expect ongoing, large-scale easing of monetary policy in H2
- New Zealand Credit card spending, June: +0.7% m/m (prior was +3.2%)
More:
- Investment bank asks “Are FX volatilities bottoming?”
- Goldman Sachs on EUR/USD trading levels to watch, and more on JPY, GBP, AUD, CAD
- Preview of week’s FX – what are the ‘Known Unknowns’?
A relatively subdued beginning to the week in Asia, with AUD, NZD, gold and, notably, oil, the biggest movers.
EUR, GBP, CHF and yen all had small ranges, EUR/USD and USD/CHF relatively flat while GBP/USD gained around 15+ points from its session lows. USD/JPY dribbled a little lower, the tune of about 9 points. EUR/JPY moved more, down from just above 137.25 high to 136.75/80 before stabilizing just above 137.00. It was a Japanese market holiday today and they are back in on Tuesday.
AUD/USD encountered selling ahead of 0.9400 which held the topside, it came back about 13 points with some negative headlines out of China (see bullets, above). NZD/USD, meanwhile, was a little more active – popping above 0.8705 in the early going, coming back to 0.8690, popping to above 05 a second time and again drifting back toward 90. As I write it has stabilized somewhat in this tight range, settling above 0.8700. There was little in the way of fresh news to account for the choppy to and fro trading.
Gold chopped around in a range, too, but is up a little on the session as I type.
Oil fell in the opening of the week here in Asia, dropping a dollar and a half and stabilizing.
As of writing, Asian equities are mainly up slightly (TSE is closed today).
