Forex trading headlines for Asia Wednesday 20 August 2014
Reserve Bank of Australia (RBA)’s Governor Stevens testimony today:
- Reserve Bank of Australia (RBA) Stevens testimony: Says RBA is allowing time for measures to take effect
- RBA Stevens Q&A: Says risk of AUD fall is underappreciated … not considered intervention useful so far
- More from RBA Stevens Q&A: Says has not thought about raising rates any time lately
Other:
- Japan Trade balance for July: Y -964.0Bn (expected Y -713.9bn) and more here
- Australia – Westpac Leading Index for July: -0.1% m/m (prior was +0.1% m/m)
- Australia – Skilled vacancies +0.9% m/m (prior was +1.6%)
- China Securities Journal: The room for “mini stimulus” policies is becoming smaller
The main event in the timezone today was RBA Governor Stevens testimony to a parliamentary committee. The AUD fell going into its beginning, and tried to fall further once it started. There was little new from Stevens, though, and the AUD gradually found some support and buying, ticking 20-odd points higher from the session lows.
NZD/USD traded more-or-less sideways in a small range until just after the Stevens testimony began; some AUD/NZD bids saw NZD/USD gradually lose ground, the slide accelerating somewhat (but, not getting carried away, the range was small) as the afternoon progressed and it is below 0.8390 and on its lows as I write. As USD buyers entered the market in the afternoon, the NZD lost further (to 5-month lows).
The Kiwi was just one currency losing ground against the USD; GBP and EUR also dropped quietly away (again, small ranges … but persistently lower). USD/JPY nibbled the offers ahead of and around 103, eventually piercing the big figure.
Oil was relatively flat, gold was up a little on the session (Added … and has given back a little of its gain as the USD strength persisted in the Asian afternoon).
