Forex news for Asia trading Monday 14 August 2017
- China July power output highest in monthly records back to 2014
- More on China July factory output, retail sales, investment misses
- More from China on industrial output
- Moody's: Reduced Credit Intensity of Growth Key to Achieving China's Policy Objectives
- China data: Industrial production +6.4% y/y (expected +7.1%)
- Japan Q2 GDP recap: "blows past expectations", "surge", "strong pick-up"
- Australia - June Credit card purchases AUD 26.7bn (prior 58.3bn) & balances AUD 52.4bn(52.3bn)
- PBOC sets USD/CNY central rate at 6.6601 (vs. Friday at 6.6642)
- Why is the yen lower in Asia this morning? (Let me count off the reasons)
- RBA's Kent (from the Q&A): Will be some time before RBA normalises rates
- Japan economy minister - GDP growth driven by domestic demand
- Japan GDP for Q2 (preliminary) 1.0% q/q (vs. expected 0.6%)
- RBA's Kent speaking on Australian housing debt, risks
- AUD traders - heads up for an RBA speech due at 2335GMT
- UK data - Pay rises, more hiring coming over the next 12 months
- China data due today expected to show steady output. (And, coming later also ...)
- New Zealand Q2 retail sales (excluding inflation): +2.0% q/q (expected +0.7%)
- New Zealand - Services PMI for July: 56.0 (prior 58.6)
- Nearby option expiries for Monday NY cut
- Weekend news: CIA head says not surprising if North Korea tests missile again
- Brexit: Davis to bombard Brussels with 12 papers, tell 'em to forget divorce payment
- Trade ideas thread - Monday 14 August 2017
- Economic data due from Asia today
- Monday morning FX - 14 August 2017 - foreign exchange prices, early indications
Weekend:
- Happy 71st birthday to Janet Yellen
- Brexit - UK ministers Hammond and Fox say transition period will be 'time limited'
- Morgan Stanley revised FX outlook: No universal USD story as in first 8 mths of 2017
- In a classic case of risk aversion, NZD/JPY shorts were the best trade last week
- Latin America closes ranks after Trump threatens to use military in Venezuela
- The euro is expensive, but buy the dips -- TD
- Video: What I learned about trading from the waves in Hawaii
The week kicked off in Asia with some yen weakness.
While the intensity of rhetoric surrounding North Korea has diminished only slightly there have been comments from US officials trying to ease fears. For example, CIA head Pompeo, and US national security adviser McMaster both said over the weekend there's no indication war will break out. 'Safe haven' flows into yen thus dialled back a little here in Asia today.
Japanese GDP data (Q2, preliminary) came in strong, but inflation is still very much missing, which would appear to be keeping BOJ easing efforts at the forefront (watch for continuing changes in tone on this, though). USD/JPY (and yen crosses) traded a little higher on the session; USD/JPY to circa 109.40 where it has since sat in a holding sideways pattern with little volatility.
EUR/USD, meanwhile, has done very little on the session at all, while USD/CHF has ticked a few pips to the better. Cable is a tad higher on the day also - see bullets above for some Brexit-related weekend headlines.
AUD/USD ticked a little higher also, NZD/USD is barely net changed on the session.
AUD/USD gained its few points despite China data today showing misses across the board (see bullets above for more detail). A better appetite for risk helping the AUD along.
Regional equities:
- Nikkei -0.80%
- Shanghai +0.43%
- HK +1.21%
- ASX +0.57%
More Brexit ... My country must come before my party if Theresa May sides with the hardliners, writes former minister ANNA SOUBRY