ForexLive Asia FX news wrap: AUD data comes in strong again

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Tuesday 8 August 2017

The focus today was on the Australian business conditions and confidence data and then China's trade balance results. We also got Japanese trade/investment data (June).

The Australian data was first, coming in strong (again) for this business survey. More details in the bullets above. The Australian dollar had been moving a little higher in the morning ahead of the release and it subsequently popped a little more. The range for the session was not large, though, 30 odd points or so only.

The AUD pop helped NZD/USD a little higher also, but continued AUD/NZD buying saw NZD/USD slip back towards its session low while the pullback in AUD/USD has not been as great.

The Chinese trade data showed a fall in trade in July, although the surplus was higher both exports and imports missed on expectations. In other China developments:

  • The Chinese yuan gained onshore today against the USD.
  • The PBOC refrained from adding (net) liquidity for a 7th day.
  • The HKD fell to its lowest since January of 2016.

Elsewhere had some minor movement.

USD/JPY fell from above 110.75 to circa 110.60 - yes a small range. But small ranges were the story of the session.

The USD generally slid a little, EUR/USD popped towards 1.1820 with a steady grind higher at first and then quickly above 1.1810. USD/CHF has done very little, its net barely changed. Cable has fared better, GBP/USD up 25 odd points on the day so far (at its high). CAD also gained a few points against the USD.

Apart from the data I've mentioned there was little to impact.

Regional equities:

  • Nikkei -0.32%
  • Shanghai -0.20%
  • HK +0.09%
  • ASX -0.79%