Forex news for Asia trading Friday 27 October 2017
- Australia High Court decision - deputy PM ineligible for parliament
- China's September industrial profits surge - recap
- Japan inflation data out earlier -recap
- Heads up for some Australian politics that might impact AUD - due soon!
- China's state planner to prevent manipulation of coal prices during winter
- Moody's: China's consolidation of power could advance economic rebalancing
- Economists see China keeping GDP target even though it shouldn't
- Japan Eco Minister Motegi comments on inflation
- UK GDP growth suggests the BoE to start a hike cycle; What's the GBP trade? - Nomura
- China Industrial profits for September: 27.7% y/y (prior +24.0%)
- PBOC sets USD/CNY central rate at 6.6473 (vs. yesterday at 6.6288)
- USD follow through continues in Asian morning
- FX option expiries - Friday 27 October 2017
- More on the Fed contender Taylor blaming slow growth on economic policy
- Australia PPI (Q3) 0.2% q/q (prior 0.5%) and 1.6% y/y (prior 1.7%)
- Fed chair contender Taylor: Lower US growth is due to economic policy
- Gold price forecasts from RBC
- Moody's on Sth Korea: Strong fundamentals, but geopolitical risks
- Japan headline National CPI (September) 0.7% y/y (vs. expected 0.7%)
- Bank of England meet November 2 - preview (once in a decade hike)
- It's the Friday FOMC Freeview! (OK, preview)
- Dombret says Hard Brexit is economically manageable
- Add this to the data calendar today - China industrial profits
- Moving along - preview of the Bank of Japan meeting
- Australian politics a focus today for AUD market
- Barclays on the ECB decision
- Trade ideas thread - Friday 27 October 2017
- Spanish politics still - a senior Catalan pro-independence official has resigned
It was a session marked by continuation of the overnight moves in the USD, albeit in much smaller scale movements. Fresh news and data was largely absent, Asia responding further the US tax news and ECB decisions overnight.
We did, however, get some Brexit comments from BUBA member Dombret - the response from GBP was basically nothing as the comments crossed. We also got Japanese inflation data (September national and Tokyo October data) and again, little immediate impact.
Eventually, though, the USD moved a little further higher pretty much across the board.
The big overnight USD moves were reflected by People's Bank of China yuan reference rate setting today, USD/CNY was moved higher by its most in 5 weeks (one-day move) and to its highest in 3 weeks. And, ICYMI, the PBOC conducted 63-day reverse repos today for the first time ever - providing liquidity in a more medium to longer term than it has done previously in using 7, 14, and 28-day RRs in open market operations.
Australian politics were at the fore today (oh, Dalian iron ore was lower too ;-) ), with 4 senators kicked out of parliament for being dual citizens (a no-no in the Australian parliament) and, more significantly, the Deputy Prime Minister was kicked out of the lower house, thus seeing the government lose its one-seat majority. Oh, when I say kicked out, the High Court have ruled these 5 ineligible for the parliament. Gone.
The Deputy PM Barnaby Joyce will now face a by election in his seat, likely on December 2. This opens up some political uncertainty in Australia. The Australian dollar dropped further on the session, under 0.7630 but its back above there as I update.
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Coming up next week:
- October 30 and 31 - the Bank of Japan
- Preview of the BOJ meeting (Cap Eco)
- Moving along - preview of the Bank of Japan meeting
November 1 is the Federal Reserve
November 2 is the Bank of England
