Forex news for Asia trading Friday 11 August 2017
- Top Yuan Forecaster Exits Long Trade After Making 4.5% Gain
- Friday morning US data coming up - July inflation figures - more previews
- RBA's Lowe: We are prepared to intervene in AUD, not at the moment
- Coming up from the US Friday morning - July inflation figures - preview
- China financing data is due this week (or next looking more likely) - preview
- More from RBA's Lowe: Does not expect full employment for at least 2.5 years
- People’s Bank of China sets yuan reference rate at 6.6642 (vs. yesterday at 6.6770)
- China state paper says if North Korea launches an attack on US, China should stay neutral
- More from RBA's Lowe (in the Q&A): Should be able to increase wages at >3%y/y
- Singapore MAS official says monetary policy remains appropriate
- Singapore Q2 GDP growth revised up to +2.2% (+0.5% expected)
- Q&A for RBA's Lowe now: Expects gradual pick up in capex outside resources
- RBA's Lowe: Global economy has strengthened
- Australia will join the conflict if North Korea attacks the US, says Malcolm Turnbull
- RBA Lowe speaks at the bottom of the our - live stream
- US Defense Secretary Mattis: US prefers diplomatic approach to North Korean threat
- Asia markets open today (except for Japan taking a long weekend)
- New Zealand - Food prices for July: -0.2% m/m (prior +0.2%)
- EUR/USD: Is the 1.1770 level (a move thorough) the key for confirmation of a base?
- New Zealand - BusinessNZ Manufacturing PMI for July: 55.4 (prior 56.2)
- Goldman Sachs on NAFTA renegotiation - impact on CAD & MXN
- N. Korea vows to mercilessly wipe out the provocateurs. US will suffer a shameful defeat
- Its nearly 6.30am in Pyongyang ... heads up for possible North Korea statements
- AUD/USD: Technicals Trump Fundamentals For Now - Barclays
- Westpac on the NZD: "Could fall as far as 0.69 by year end"
- Goldman Sachs on FX markets looking for 'the next Canada' (& USD/CAD forecast)
- NZ data - REINZ house prices, sales (House Sales July -24.5% (prior -24.7%))
- Trade ideas thread - Friday 11 August 2017
- Trump thanks Putin for expelling US diplomats, happier with smaller payroll
- RBA Governor Lowe speaks today - he'll stay on track with SoMP comments - preview
- ICYMI: ForexLive Americas FX news wrap: Second-worst day of the year for the stock market
- Economic data due from Asia today - fried and furry back on the table!
- Trump: We're going to increase defense budget by many billions
Comments from US President Trump on North Korea in the US afternoon looked like they may have reignited 'risk' concerns in Asia for Friday, but placating words from US Defense Secretary Mattis (US prefers diplomatic approach to North Korean threat) seemed to calm fears somewhat, further calmed by little in the way of escalating rhetoric from North Korea.
So, it was back to the usual inputs, which were lacklustre. Lower tier NZ data & comments from RBA Governor Lowe did little to move FX markets much at all, and a Japanese holiday was further sedation.
Reserve Bank of Australia Governor Lowe:
- RBA's Lowe: We are prepared to intervene in AUD, not at the moment
- More from RBA's Lowe: Does not expect full employment for at least 2.5 years
- More from RBA's Lowe (in the Q&A): Should be able to increase wages at >3%y/y
- Q&A for RBA's Lowe now: Expects gradual pick up in capex outside resources
- RBA's Lowe: Global economy has strengthened
Lowe was not expected to depart from the recent SoMP report, and he didn't - there were no surprises in his remarks today. he did mention that a return to full employment was not expected for more than another 2.5 years. It's a bit of a head-scratcher that the RBA can stay on hold with its cash rate given it expects to miss on its employment mandate for so much longer ...
AUD/USD traded relatively steadily, but finally gave away 30-odd points. Its recovered a little and is currently 20 or so points off its session high.
NZD/USD slipped a little with the AUD but in the wash-up is currently barely net changed on the session. USD/CAD, little net change also.
USD/JPY made its way a few more points lower after weakness overnight. As mentioned, it was a Japanese holiday today, the 25 points (or so) lower for USD/JPY has been attributed to North Korea jitters.
EUR/USD is barely changed, USD/CHF is a tad lower (a little CHF strength supporting the 'Nth Korea' concerns narrative). Cable - little net change.
Regional equities, though - net lower on the session for a sea of red:
- Nikkei -0.05%
- Shanghai -1.31%
- HK -1.56%
- ASX -1.29%
Still to come: USD CPI data:
