Forex trading headlines for Asia Wednesday 27 August 2014
- Russian President Putin: Says discussed with Ukraine’s Poroshenko need for swift end to bloodshed in Ukraine
- U.S. Coast Guard fires on Iranian fishing boat
- Abe adviser sees risk in the next planned sales tax hike
- Month end flows to favour the Euro … but will it be enough to reverse the trend lower?
- New Zealand – July Food Price Index: -0.7% m/m (vs. +1.4% expected)
- China Securities Journal reports another province to loosen home purchase curbs
- New Zealand – Fonterra keeps forecast milk payout unchanged for 2014/15
- And …NZ’s Fonterra ties up with China’s Beingmate on infant formula
- Australia data – Q2 Construction Work Done: -1.2% q/q (vs. expected -0.5%)
- and more here
- Westpac MNI China Consumer Sentiment Index -1.3% m/m in August
- Reuters: NZ’s Fonterra ties up with China’s Beingmate on infant formula
- China … banks loans weaker
- Japan wants to believe the sales tax impact is fading … but here’s the tell its not confident
- BOJ Pushing for Greater Global Yen Role … to extend network into overseas hours
- Bernanke: September, October 2008 the worst financial crisis in global history, including the Great Depression
- China – government to allow foreign investors to set up wholly-owned hospitals in seven regions, including Beijing, Tianjin and Shanghai
A day of mixed movement.
EUR/USD dropped toward 1.3150 early but the rumoured barrier interest there gained more evidence with it bouncing back above 1.3165.
Cable, meanwhile, got marginally below the North American low (not by much at all, tics only) before it, too, slowly ticked back – up around 20 points from its low. The CHF followed a similar sort of pattern, but EUR/CHF was a few points lower on the session overall.
USD/JPY attempted 104.15 yet again and stabilised above 104 for much of the Tokyo morning … but is falling away as I type to be yet again be back under the 104 figure. EUR/JPY is meanwhile down below 136.90.
AUD/USD ticked 20-odd points higher in the Sydney morning before stabilising a touch off its session high, to be sideways around 0.9310/17 since just after today’s weaker than expected data. Construction Work Done is an input to GDP, and it confirmed the soft spot in Q2 (see bullets, above).
And so … to the star of the session, the little bird that could. The NZD added a few points during the New Zealand morning but jumped on the Fonterra milk price announcement. It stabilsed around 0.8350 before gaining further as more announcements from Fonterra were forthcoming, with a partnership into China and big investments into further milk processing plants (see bullets, above). Its on session highs as I type.
Gold gained a few dollars off earlier session lows; oil was basically sideways.
