ForexLive Asia FX news wrap: RBNZ not as dovish as expected
Forex news for Asia trading Thursday 10 August 2017
- China to discuss soaring steel prices
- The China financing data is due sometime this week (its a big window)
- Japan's Defence Minister says would be able to intercept a Nth Korean missile
- China’s Outbound Real Estate Investment Plunged 82% in the First Half of 2017
- More on the "Lots of UK data to be released tomorrow" (previews)
- RBNZ's Wheeler: We would like to see a lower NZD
- People’s Bank of China sets yuan reference rate at 6.6770 (vs. yesterday at 6.7075)
- While we await the PBOC - Goldman Sachs on the CNY
- Australia - Consumer inflation expectations (August): 4.2% (prior 4.4%)
- Reports of Tokyo earthquake
- Its just gone 9am in Tokyo - update (spoiler - not much fire and fury today)
- Japan PPI for July +0.3% m/m (expected 0.2% m/m)
- Japan - Machine Orders for June: -1.9% m/m (vs. expected +3.6%)
- UBS chart says "US Dollar Reaching 2017 Bear Target ... Worst is Over!"
- UK - RICS house price balance for July: +1% (expected 9%)
- NZ data - electronic retail card sales -0.5% m/m (expected +0.3%)
- RBNZ's Wheeler comments now on NZD intervention
- Goldman Sachs - Global FX Views: "We are revising down our forecast for the USD"
- RBNZ Wheeler: Structural factors are weighing in inflation globally
- North Korea says seriously examining "simultaneous fire" of 4 missiles at Guam
- EUR/USD: Consolidation Phase: Levels & Targets
- RBNZ decision and statement - analyst responses coming in
- RBNZ leave cash rate unchanged (as expected)
- Forexlive Americas FX news wrap: Gold up. Flight into CHF, but NY session mellow
- Trade ideas thread - Thursday 10 August 2017
The Reserve Bank of New Zealand pretty much kicked off the session with their monetary policy announcement and accompanying Monetary Policy Statement (the MPS is issued by the RBNZ once a quarter). As was unanimously expected the Bank left the Official Cash Rate (OCR) on hold at 1.75%, but caught the market unawares with a less dovish than expected MPS.
NZD/USD moved a little higher, getting above 0.7360 before beginning a slow trek back to where it started and then subsequently a little lower overall for the session. As I update its been as low as circa 0.7300. Movement in the NZD/USD was loosely tracked by AUD/USD (very loosely) - its been above 0.7905 and has returned to be also net lower on the session by a little.
Regional equities have again been on the softer side, 'risk' being cited (lower) again, a factor weighing on the CAD, AUD and NZD (ps. I should note also that comments from RBNZ Governor Wheeler at his press conference and appearance in parliament included remarks on possible intervention. This would seem a very loose threat but these too nevertheless weighed on the kiwi).
USD/JPY ticked a few points higher into the Tokyo fix time today, popping above 110.10 briefly before giving back some of its gains - albeit within a small range on the session.
As I update EUR/USD is slipping a few points, its towards the lower end if its small 25-odd point range on the session. CHF, too, is weaker (USD/CHF on its session high). GBP is on its lows against the USD too.
Gold is barely changed on the session.
And, as I post, NZD (and AUD) are making fresh session lows.
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