Forex news for Asia trading Thursday 6 November 2014
- China unlikely to cut overall rates next year
- Canada’s AAA credit rating was affirmed by S&P
- New Zealand – QV house price data for October, +5.9% y/y (prior was +6.4%)
- BOJ Minutes: Will keep easing until 2% inflation stable
- Australia – October Employment Change: +24.1K (vs. expected +20K)
- Australia employment data – Analysts reactions
- Is Bank of Japan governor Haruhiko Kuroda a genius or madman?
- Behind the scenes at the BOJ briefing after the shock announcement
- Nomura tips MORE BOJ stimulus
- Sth. Korea will manage its currency in line with yen movements: From Yonhap – “The Bank of Korea will therefore start fixing the dollar-won exchange rate so that it does not move too far out of of sync with other global exchange rates”
The yen fell to its lowest against the USD since November 2007 today; it gained steadily through a pretty much news-free Tokyo morning (the release of the BOJ Minutes of the October 6-7 meeting contained little sign of the extra easing that took place at the end of the month), hitting just above 115 before a quick drop of 35 or so points. Another surge smashed through 115 much more convincingly, to 115.30+.
Then it was the Nikkei’s turn to get nuts – as it dropped (down more than 1.6% in an hour or so) USD/JPY fell with it, from touching 115.50 it fell a big figure in half an hour. Interbank markets report widening spreads and a paucity of orders (what sellers were around on the way up were gobbled by stops, and there weren’t many buyers about as it plunged back through those levels), along with an outsize impact from orders as they hit the market, to account for the volatility.
Yen crosses were volatile, following a similar sort of pattern.
Cable, EUR/USD and the like … well it just wasn’t where the action was today, although EUR/USD managed 30 points higher from the session lows I saw.
AUD and NZD, too … the big moves were against the yen. Both continue to look heavy against the USD, the Kiwi a little more so on the session as it hit a lower low from the overnight.
Gold dipped towards its overnight low but bounced a few dollars. Oil mainly flat on the session.
