Forex news for Asia trading Wednesday 11 October 2017
- Japan's Steel Scandal Deepens as More Faked Data Emerges
- The USA is out of the soccer World Cup, but here's an FOMC minutes preview
- More from Fed's Kaplan: Looking for evidence of progress on inflation for hikes
- PBOC sets USD/CNY central rate at 6.5841 (vs. yesterday at 6.6273)
- Nearby forex options expiry data for the New York cut at 10am - Wednesday
- This is not FX. But if want a (for real) LOL .... check it out
- Newly crowned Nobel economist says "the stock market seems to be napping"
- More from Fed's Kaplan - Biggest threat to US economy is sluggish growth
- AUD retrying 0.7800
- Fed's Kaplan: Intends to keep an open mind on raising rates at upcoming meetings
- Japan - Core Machine Orders for August: +3.4% m/m (expected +1%)
- Australia - Westpac monthly consumer confidence (October): +3.6% m/m
- 6 military planes (including 2 US strategic bombers) fly over Korean Peninsula
- Wednesday (US time) is FOMC Minutes day - preview
- Bond mkt veterans say be wary of the 1st wave of trading after new Fed chair announced
- Trump briefed by military leaders to discuss range of options to respond to North Korea
- Wednesday (US time) is FOMC Minutes day! Preview
- Fed's Kaplan will be speaking during Asia time - what to expect
- UK's Hammond says he won't commit money for a no Brexit deal in budget
- New Zealand election update - 4th day of talks after key decision delay
- NZ data - ANZ Truckometer for Sep: -1.5% m/m (prior +6.2%)
- Trade ideas thread - Wednesday 11 October 2017
- Spain's deputy PM says an extraordinary cabinet meeting has been called (Wednesday)
- Brazil - Congressional report recommends shelving new charges against Temer
- Plenty of Spain to come amid Catalan independence document signing
- NAFTA comments from Mexico's foreign minister - end would be a breaking point
We had a bit of movement here in forex in Asia today, but as the title to the wrap says the moves were not large.
Australian data was a bit of a nice surprise - the first positive reading (optimists>pessimists) on the monthly Westpac Consumer Sentiment indicator since November of 2016. That seemed to help the AUD along, with AUD/USD popping above 0.7800, albeit briefly.
The higher AUD was helped by an across-the-board weaker USD (more on this to come) but once a few stops were cleared above 0.7800 AUD/USD lost ground, back toward its early session low circa 0.7775/80.
On the USD, the focus came to rest on comments from Federal Reserve Dallas President Robert Kaplan who said, most notably, that the yield on the 10-year Treasury had fallen despite Fed rate hikes this year, a development he viewed as "a little ominous":
- "I view that as a comment on future economic growth.
- "And what I don't want to see us do is raise rates so fast that we get an inverted yield curve because history has shown an inverted yield curve has tended to be a precursor to a recession."
The weakness in the USD saw EUR/USD above 1.1820, USD/JPY under 112.30 (and moves elsewhere) but these were not to last too long. As I update EUR/USD has slid back to to circa 1.1800 and USD/JPY is circa 112.50. CHF, GBP, CAD have all given back their little gains too.
Like I said, small ranges ... but that's all we got.
I posted an update on NZ election progress earlier - it appears a decision will not be made on October 12 as NZ First leader Winston Peters earlier promised (you know what a pollies promises are worth, right?). The NZD traded in a similar pattern to other currencies against the USD today, but as I write its slightly stronger than others.
What have I missed? Japanese data was better and the PBOC jacked up the onshore yuan at the reference rate setting again today (see bullets above).
And, still to come:
- Spain's deputy PM says an extraordinary cabinet meeting has been called (Wednesday) ... 9am Madrid time
- Plenty of Spain to come amid Catalan independence document signing
And, then later from the Federal Reserve:
- Wednesday (US time) is FOMC Minutes day! Preview
- Wednesday (US time) is FOMC Minutes day - preview
- The USA is out of the soccer World Cup, but here's an FOMC minutes preview
And, here's a new one for the Eminem fans .... if he was ever away he is back big time with this. (ps. If you are a Trump supporter you might want to not watch/listen.)