Forex trading headlines for Asia Monday March 3 2014
Weekend:
Monday:
- US Sec. of State Kerry to travel to Kiev, Ukraine, on Tuesday
- New Zealand terms of trade index for Q4 +2.3% q/q (expected was +1.9%)
- US Treasury Secretary Lew: US prepared to supplement IMF support for Ukraine
- Australia- AIG Performance of Manufacturing Index (manufacturing PMI) for February: 48.6
- Australia – RPData/Rismark house price index for February: Flat at 0.0% (prior was 1.2%)
- Australia – TD Securities/Melbourne Institute (MI) Inflation Gauge for February: 0.2% m/m
- North Korea fires two missiles into the sea off its east coast
- Japan data – capital spending, company profits, outstanding loans
- Australia – Housing Industry Association (HIA) New Home Sales for January: 0.5% m/m
- UK – Hometrack houisng survey 0.7% m/m (prior +0.3%)
- Australia – ANZ job advertisements February: 5.1% m/m (prior was -0.3%)
- Australia – company profits data for Q4
- G7 condemn Russia’s violation of Ukraine sovereignty – suspends Sochi G8 meeting preparations
- Bank of Japan (BOJ) Governor Kuroda: BOJ easing is having the intended effect
- China Non-Manufacturing Purchasing Managers Index (PMI) for February: 55.0 (prior was 53.4)
- China – HSBC/Markit manufacturing PMI for February: 48.5 (expected 48.5, flash was 48.3)
- Goldman Sachs is hiring 10 dealers/traders
The markets reacted to the turmoil in Ukraine from the opening in Asia today.
The yen found strength, yen crosses gapping (not huge) lower, EUR/USD, AUD/USD also opening lower than Friday NY closing levels.Cable, too, was a little weaker.
It wasn’t just FX, of course, over the day we saw oil higher, gasoline futures higher, stock futures lower, gold up, US T notes up.
The situation remains very fluid and the markets are going to respond to headlines and be less liquid than normal.
USD/JPY gapped lower on the NZ opening and approached 101.30 before very early Tokyo saw it trade back toward 101.70 where sellers once again entered. It fell sharply again on the news of North Korea firing two missiles into the sea off their east coast but did not extend much beyond earlier lows and stabilized around 101.40 … for now.
EUR/USD traded down toward 1.3750, bounced above 1.3780 briefly and settled around 75.
The Kiwi was a little heavy, but found buying just ahead of 0.8340 and made it back toward 0.8360.
AUD/USD extended its Friday’s fall a little more, to below 0.8900 but no further. Data from Australia was on the supportive side as a whole for the day, but Ukraine and China concerns (would the yuan weaken again today?) was the bigger focus, it stabilized around 0.8900. In the afternoon it ticked back toward 0.8920, some short covering helping it along, but the Chinese stock exchanges stabilizing (other Asian bourses down), as did the yuan also playing a supportive role.
Ukraine remains a very fluid situation. And the America’s session may well lack extra liquidity today, too. Take care out there.
