Forex trading headlines for Asia Monday 09 June 2014
Weekend:
- Coeure says ECB rates will remain low even as others hike
- BOJ’s Kuroda … “the policy has been having the intended effects”
- Weekend data – China May trade balance: $35.92bn (vs. expected +$22.60bn)
- Russia, Ukraine and EU to resume gas talks
Monday:
- Japan GDP data for Q1 (final): +1.6% q/q (+1.4% expected) and more here
- Other Japanese data released monday morning in Tokyo
- People’s Bank of China (PBOC) sets yuan reference rate at 6.1485 (vs. prior set at 6.1623)
- Morgan Stanley has upgraded its AUD/USD forecast – now looking for parity by year-end
The Australian dollar ticked its way back toward Friday highs after a quiet morning, despite a holiday Monday for Aussie markets. Chinese trade data over the weekend, a subsequent sharp marking higher of the CNY by the PBOC in the morning’s mid-point setting were cited, along with the good improvement to Japanese GDP data from Q1; Morgan Stanley’s report looking for the AUD/USD to head back to 1 was also eyed. Chatter of more China stimulus even emerged. In short … no-one pinpointed the real cause. But the effect was a 20-odd point gain (as of writing).
The Kiwi dollar, too, ground its way higher.
USD/JPY attempted above 102.60 but couldn’t hold there, drifting back 10 points in a lacklustre yen market. The Nikkei opened strongly today.
EUR, GBP and CHF were all tightly range-bound awaiting Europe’s open.
USD/CAD put on a few points, marginally higher.
Reminder for AUD traders: RBA head Stevens speech to be published at 0700GMT
