ForexLive Asia FX news wrap: Q3 GDP result shows Japan back in recession
Forex news for Asia trading Monday 17 November 2014
- HSBC: Japan likely to compile ‘fairly large’ extra budget
- Nomura: No need to be pessimistic on the future of the Japanese economy
- Japan GDP – inventory adjustments a positive sign?
- Japan slips back into recession with negative Q3 GDP result – paves the way for sales tax hike delay & early election
- Japan economy minister Amari: Biggest reason for GDP drop is private inventory adjustment
- BoE’s Haldane says watching risks of low inflation ‘like a dove’
- Australia press: Tony Abbott seals free trade deal with Beijing
- New Zealand Services PMI for October: 57.8 (prior was 58.0)
- New Zealand Retail Sales excluding inflation for Q3: +1.5% q/q (expected +0.8%)
- M6.9 earthquake north-east of New Zealand
- EUR/CHF – SNB Intervention Is Coming; How To Trade It? – Nomura
- Swiss National Bank says Swiss gold vote will hurt efforts to cap franc
- Xinhua (on weekend): China electricity consumption +3.1% y/y
- NZ finance minister said over the weekend that NZD “mid-to-high 70s” is sustainable for the economy
The Japanese Q3 GDP data release was the big, long-awaited event for Asia today … and the market response was not disappointing. The GDP came in at a shock negative (+2.2% was the ‘expected’ …. -1.6% was the result). USD/jpy immediately kicked on to hit above 117.00 …. but the jump was short-lived and the balance of the morning was spent selling USD/JPY and yen crosses, with the USD/JPY dropping 150+ points to hit just below 115.50 before showing some sort of a recovery (as I type).
The USD weakened (but not by anything near as much) against other currencies, too. EUR/USD and cable both gaining well (relative to what we normally see in this timezone) on the session. AUD and NZD gained from Friday’s closing levels along with the USD weakness.