Forex news for Asia trading Wednesday 17 December 2014
- BHP Billiton tipped to cut $2b capex on oil price slump
- New Zealand Q3 GDP: +1.0% q/q (vs. expected is +0.7%)
- New Zealand finance minister English: NZ growth potential may be higher than thought
- Reuters poll – 13 of 19 US primary dealers see Federal Reserve raising Fed Funds rate by June 2015
- China shows stabilisation in fourth quarter, but investment sliding: business survey
- China house prices: -3.7% y/y (prior -2.6% y/y)
After the gyrations ahead of the FOMC in Europe and then the post-FOMC announcement and post-Yellen moves currencies were much more settled in the Asian timezone.
EUR/USD managed around a 30-point range. It revisited down toward its overnight low during the Asian morning but gained from there. Cable, too, had around a 30 point range, edging higher and then settling sideways.
USD/JPY made a new high from its overnight range, ticking to 119.00 and thereabouts before giving back 60-odd points; EUR/JPY tracked out a similar sort of pattern with it.
AUD and NZD saw a little more activity. NZD/USD spiked on release of the better than expected Q3 GDP figures … but it was just a spike as it nearly instantly came back to where it was. Market talk blamed it on algorithmic trading (a favoured bugbear) and given the speed of the move it seems a reasonable conclusion. Regardless, the price came back to where it was pre the release before tracking mainly sideways for the next few hours. AUD and NZD buying in the early Sydney afternoon drove both the Aussie and Kiwi to near 60 point gains.
Oil gained a little during the session, and gold was a little higher also. Equities made hay after the strong US gains, a ‘patient’ Fed cited.
