Forex trading headlines for Asia Thursday 2 October 2014
- Canadian finance minister Oliver – Canada will reduce taxes after budget balanced
- ANZ cuts its forecast Fonterra 2014/15 milk price payout by 40 cents to $4.85/kg
- ASB says downside risks increased for Fonterra’s milk price forecast for 2014/15
- RBA officials’ testimony to parliamentary committee, here, here, here
- UK Times: Bank of England member Sharp was buying assets, contradicting Carney
- Japan buying foreign bonds + the rest of this data
- More from the Bank of Japan (BOJ) Tankan – Firms inflation expectations
- New Zealand ANZ Commodity Price Index for September: -1.3% m/m (vs. prior -3.3%)
- Where do Japanese firms expect USD/JPY to be? Forecasts
- Australia – Building approvals for August: +3.0% m/m (vs. expected +1.0%)
- Australia – Trade balance for August: -787m (vs. expected -800m)
Reminder … coming up in Europe:
- Euro – Preview of the ECB meeting and Draghi’s presser … “watch for comments on the euro”
- Technical Analysis (Video): ECB up next. What will the EURUSD do?
There were minor losses for the USD in the early going today, but then a huge move almost across the board for it towards midday in Japan.
Currencies had been edging higher but then the gains became large 9for this timezone) as stops kicked in. GBP and NZD jumped large – the NZD/USD up 170+ points from its lows. Its a thinner liquidity pair than the other ‘majors’ and got an extended move today.
EUR/USD was a decent gainer, too, up 50+ points. GBP/USD up 70-odd.
AUD/USD had found decent buying earlier in the session, with better data out today (see bullets, above for the details, which are maybe not quite so good as the headlines suggest). It gained 90+ points from its lows throughout the day.
Gold benefited throughout the session, oil was relatively flat.
CAD a gainer on the session too, in line with the widespread USD weakness.
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If you are not in front of a price feed – a snapshot of prices at 0353GMT:
