ForexLive Asia FX news wrap: Another NK induced USD/JPY wobble
Forex news for Asia trading Thursday 7 September 2017
- Here's what a North Korea war might mean for the yen
- Kuroda is front-runner to replace ... errr ... Kuroda as BOJ head next year
- Down a quarter of a billion USD, China bear capitulates & reverses
- PBOC lends 298bn yuan via 1 year MLF loans
- Australia - Retail Sales for July: 0.0 % m/m (expected 0.2%)
- Australia Trade Balance for July: surplus of AUD 460m (expected surplus AUD 1bn)
- PBOC sets USD/CNY mid-point today at 6.5269 (yesterday at 6.5311)
- US Treas Sec Mnuchin warns of sanctions on any country trading with North Korea
- Moody's on Korea - says potential for conflict is low (revised from very low)
- US Treas Sec Mnuchin: Says he expects tax bill to be in congress committees this month
- South Korean PM says North Korea may launch a missile on September 9
- EUR/USD: 5 reasons why Draghi won't likely talk down EUR in a meaningful way
- Coming up UK today - the latest batch of Brexit papers
- Goldman Sachs Bank of England monetary policy decision - preview (yeah, an early one!)
- Australian Construction PMI for August: 55.3 (prior 60.5)
- Option expiries for 10am NY time Thursday 7 September 2017
- Its European Central Bank day - ECB statement and Draghi news conference - previews
- Australian Q2 GDP - implications for the Reserve Bank of Australia
- ICYMI: Iran closes airspace for US, Saudi aircraft
- Australian retail sales data due today - previews
- Australian trade balance data due today - previews
- ICYMI: Forexlive Americas FX news wrap. Oh Canada! Bank of Canada hike sends CAD sharply higher.
- ForexLive poll: Let's have your nominations for next Fed Chair!
- Brazil's central bank cuts benchmark interest rate to 8.25%
- More on the report that Trump unlikely to nominate Cohn as Fed Chair
- DJ report than Trump is unlikely to nominate Cohn as Fed Chair
- Trade ideas thread - Thursday 7 September 2017
- Oil - private survey inventory data shows smaller than expected build in crude stocks
USD/JPY slipped a few tics from late US-time highs in very early Asia before dropping more sharply under 109 as Tokyo got active. The quick slide came on a comment from South Korean Prime Minister Moon that he thought there may be another missile fired from North Korea on September 9. I posted earlier in the week that given September 9 is North Korea 'Foundation Day' expectations were higher for a launch over the weekend, perhaps that's where Moon got the idea from!
Anyway, USD/JPY dipped under 108.90 very briefly before a bounce back to 109.20 and just over and has since steadied around 109.10 and thereabouts.
News flow was otherwise very light indeed.
We did get some data from Australia, the trade balance and retail sales (July) both came in at a miss. The Australian dollar dropped a few points, back under 0.8 (didn't I say that yesterday in the wrap?) and its on its lows under 0.7990 as I update (& ditto). NZD/USD, meanwhile more or less steadily gained through the session, but only small, up from late NY around 0.7190 to circa 0.7215 before steadying a little.
EUR/USD, too, is in the 'small gain' category, from 1.1915/20 late US time to above 1.1930 briefly. Little change too for USD/CHF and Cable.The People's Bank of China lent 1 year funds today though their MLF.
- Nikkei +0.37% (it was higher earlier, but the bout of yen strength sapped it somewhat)
- Shanghai -0.31%
- HK +0.23%
- ASX +0.23%
Still to come: Its ECB day (and the Riksbank)