Forex trading headlines for Asia Monday 6 October 2014
- People’s Bank of China (PBOC) statement released on Sunday after quarterly policy meeting – no surprises
- UK’s Cable – says pound is overvalued by 10 to 15 percent on a trade-weighted basis
- New Zealand – Q3 Westpac McDermott Miller Employment Confidence Index 111.5 (109.9 prior)
- Goldman Sachs quick overview of the technical analysis outlook for EUR/USD and other majors
- Goldman Sachs technical analysis chart for EUR/USD and trading rec/strategy
- New Zealand QV house prices for September: +6.4% y/y (prior was +6.9%)
- Australia – TD Securities/Melbourne Institute (MI) Inflation Gauge for September, +0.1% m/m
- Australia – ANZ job advertisements data for September: +0.9% m/m (prior +1.5% m/m)
- Technical Analysis: Looks like the NZDUSD has room to extend lower
- World Bank cuts its forecast GDP growth for China and Asian region
- Technical Analysis: Will the EURUSD continue to fall?
- Sri Lanka suspends sale of Fonterra milk powder
- BHP plans to lift iron-ore capacity by nearly 30%
Sydney, China and Singapore were all on holiday today, which thinned FX liquidity somewhat during the start of week session. Of course, the bright side of thinner than normal liquidity can be moves in prices greater than we normally expect for this timezone. And today didn’t disappoint, with heavy NZD and gold selling in the morning a feature of the day.
GBP, too was heavy very early in the session with weekend comments from Cable (the man, not the currency pair) – see bullets, above.
Yen and EUR were both relatively subdued, though.
NZD fell heavily as Tokyo started to come into the office, dropping 50 or so points on the morning. It has since retraced nearly all its move, though. Weekend news on a milk powder scare had an impact.
AUD/USD didn’t fall so hard, and gained back all of its loss and more only to settle now (as of writing) close to opening levels.
Gold was a big loser earlier, getting close to breaking the critical 1180USD level but so far hanging in there.
