Forex news for Asia trading Friday 14 November 2014
- Fed’s Kocherlakota: If inflation outlook rises, could support rate hike in 2015
- More from Fed’s Kocherlakota: Asset bubbles are something the Fed has to keep in mind
- More on “Glencore to Temporarily Shutter Australian Coal Mines”
- Mainichi report that Japan PM Abe is to announce a delay to the next scheduled sales tax hike
- ECB’s Noyer: Sees “no problem” buying govt bonds if rates rise, euro zone suffers negative shocks
- China data – signs of a ‘silver lining’ for demand
- Chinese Premier Li: Chinese economy is still expected to face relatively big downward pressure in 2015
- China government is planning to cut tariffs on coal exports to 3% from 10%
- Japan finance minister Aso: Economic indicators improving since September
- Nomura cuts Q4 China GDP forecast from 7.6% to 7.3%
- Preview of the Japanese preliminary Q3 GDP data due on Monday
- OECD Secretary-General Gurria: World economy has been weakening, Japan’s debt weighing on growth prospects
USD/JPY triggered stop loss buyers in the Tokyo morning, taking USD/JPY through 116.15 briefly before coming back under the figure. It dropped nearly 30 points but stabilized and then gradually recovered to back near session highs and has tracked sideways around 116 as I write.
Cable well and truly pierced 1.57 today and consolidated lower below there as the session progressed. EUR/USD wasn’t immune from USD strength, it slid in a slow but persistent fashion. Both cable and EUR/USD are on lows as I type this up.
AUD and NZD followed suit. AUD was further weighed on by news coming from Glencore, the world’s largest exporter of thermal coal, that they were to close some mines in Australia for 3 weeks in December, citing global oversupply (see bullets, above). It was the kiwi $, though that looked the softer of the two in afternoon.
Oil remained relatively flat after the overnight slip, while gold had a rangey sort of session with sellers around 1162.50 and buyers back in again near the overnight lows ahead of 1157.
