Forex trading headlines for Asia Monday 13 October 2014
A summary of all the comments that came out this weekend:
- SNB’s Jordan: Will defend minimum exchange rate with unlimited intervention if necessary
- BOJ’s Kuroda: No gap in views between the government and the central bank that a weak yen was positive for Japan
- ECB’s Nowotny says they should only buy quality ABS
- Germany’s IW head says devaluation of the euro will not solve EU’s problems
- Mario Draghi: Eternal optimist
- Fed’s Tarullo actually makes a comment on monetary policy
- China – PBOC economist says no need for big stimulus
- China Premier Li Keqiang – China will avoid a hard landing despite worries over a slowdown
- IMF – “Bold action” needed to bolster global economic recovery, urge governments not to tighten budgets too drastically
- Fed’s Evans: Strong dollar and weak global inflation exerting downward price pressures in the US
- India’s central bank head Rajan – Expect volatility in EMs once the U.S. Fed decides to raise interest rates
- Bank of Canada’s Poloz sees labor slack, looking through some inflation
- Comments from Fed’s #2 – May slow tightening if foreign growth weaker than anticipated
- Former PBOC advisor lowers China 2014 growth forecast to 7.4%
- Ex UBS chief economist says Swiss interest rates will rise soon
- ECB’s Nowotny says euro very likely to keep weakening
Monday:
- New Zealand Food price index for September: -0.8% m/m (vs. prior was +0.3%)
- Nikkei: Japan trade union to likely propose 2% pay raise at next year’s talks
- Financial Times – Deutsche Bank clampdown on bad behavior prompts exodus of traders
- New Zealand house price data out, REINZ September house price +0.2% m/m
- People’s Bank of China has loosened control of lending quotas to property developers
- China iron ore and rebar futures higher today
- China trade balance for September: $ 31.00bn (vs. expected $41.10bn) and more here and here
- China September trade data – imports from New Zealand decline for first time since February 2013
- “Privately, Saudis tell oil market: get used to lower prices”
It was a story of USD weakness in the Asian timezone today. Yen was the initial mover, with USD/JPY down through Friday’s lows in the early going, draggin yen crosses lower with it.
Not far behind, other currencies began their climb against the USD, EUR, GBP and CHF notably strong through the session (as of writing), with gains 50-70 points depending on the pair. Gold, too, found a bid, up around $10 on the session.
Oil was a little lower on the day.
AUD and NZD were interesting, both not benefitting in the early going from the USD weakness, and actually losing ground even as EUR, GBP and CHf gained. The turnaround did come though, from the late Sydney morning, AUD posting 80+ point gains from early lows, NZD/USD up a similar amount. The gains were well in place before the impressive Chinese trade date was released (see bullets, above).
Liquididty was less than usual today with Japan closed for a holiday.
