The forex trading headlines for Asia Monday 23 December 2013
Weekend:
- Greek government majority shrinks to three
- ECB’s Praet says they are ready to act if banking credit dries up
- BOE’s Bailey warns over the balance of UK growth
- IMF’s Lagarde impressed by the US economic outlook
Monday:
- China presses media to tone down cash crunch story
- Japan government forecasts 1.4% GDP growth for 2014
- New Zealand November M3 money supply: +6.7% y/y
- China cash crunch … why now?
- Thailand’s baht fell to the weakest level in more than three years (h/t Mungo in the comments)
Despite the continued tightness in China’s money markets the AUD had a quiet session, barely moving. You’d be excused for expecting weakness in the AUD stemming from China liquidity turmoil, so it would appear that what little interest there was it AUD today it was skewed to the buy side.
NZD/USD was more active, ticking marginally higher in the early going but losing a little ground, 20-odd points, as the session progressed.
USD/JPY was nailed to a tight band around 104.00/05.
EUR and GBP traded higher in the early going, the cable a star performer up around 35 points, but pulling back somewhat to settle just below and around 1.6350 for most of the session.
