ForexLive Asia FX news wrap: RBA's Lowe spoke today, AUD a few points lower

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Friday 11 August 2017

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:

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: