ForexLive Asia FX news wrap: Yen higher on fiery Nth Korea rhetoric

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Wednesday 9 August 2017

The focus for the early part of the session was on US President Trump's 'fire and fury' comments and subsequent North Korean responses threatening (specifically) Guam.

The market response was toward 'risk off' with a higher yen, higher gold and lower AUD (for example). Moves were not overly large nor rapid, more of a slow grind.

USD/JPY ticked lower, under 110.20 before an hour or so of stability circa 110.10, then to under 110.00  and subsequently to below 109.80 (not for too long). Yen crosses headed lower alongside, AUD/JPY a notable big loser as AUD/USD slid on the session also.

The Korean won fell on the session, its down around 1% as I write.

Chinese inflation data was the economic calendar focus, with CPI and PPI both coming in very slightly below expectations and having little market impact. Also from China, the People's Bank of China yet again refrained from a net injection of money market cash, with a 140bn yuan injection matching the drain from offsetting maturities (140bn in reverse repos matured today). The Bank set the reference rate for the CNY against the USD at its highest (for CNY) since 10 October last year, continuing the strength of the yuan we have seen.

EUR/USD has slipped just a tad lower from its late US levels. USD/CHF has slipped a little too, the CHF a beneficiary of the shuffle out of risk. Cable has spilt the difference, little changed net on the session.

CAD has lost ground against the USD while gold is sup on the session.

Regional equities:

  • Nikkei -1.35%
  • Shanghai -0.21%
  • HK -0.66%
  • ASX +0.56%