Forex trading headlines for Asia Monday 17 February 2014
Weekend news:
- Moody’s changes Italy outlook to stable from negative
- China data released Saturday – money supply, new yuan loans, total financing
- ECB’s Coeure says they are ready to take “decisive action if required”
- Japan’s Suga says govt will continue to leave monetary policy to BOJ after sales tax hike
- Merkel’s coalition under pressure after Friedrich resignation
- Greek PM says budget surplus tops forecast, allows spending
- Swedish finance minister says tax hikes needed to boost finances
- Italy’s Berlusconi says still backs reforms agreed with Renzi
- BOE’s Carney says interest rates will rise only when there is a sustainable growth in jobs and income
- EC’s Barroso says it would be “very difficult” for an independent Scotland to join EU
- Germany’s Merkel to meet coalition leaders Tuesday as crisis looms
- Italy president to meet Renzi Monday, seen asking to form govt
- Japan pension fund warns of unfair Abe pressure
- Merkel ‘vetoes quick aid’ for Greece
Monday:
- New Zealand Performance of Services Index (Services PMI) for January: 58.1 (prior was 57.5)
- New Zealand Retail Sales for Q4: 1.2% q/q (vs. expected +1 .7% & prior was +0.3%)
- China People’s Daily: China potential GDP growth to fall
- Japan GDP (seasonally adjusted) for Q4, preliminary: 0.3% q/q (vs. expected 0.7%, prior 0.3%)
- UK data – Rightmove House Price Index for February: 3.3% m/m/(prior was +1.0%)
- Japan PM Abe: Has strong expectations of move toward higher pay
- Australia – New Motor Vehicle Sales data for January; -3.5% m/m (prior was 1.7%)
- China rates – 7-day repo falls to lowest in a month
- Japan economy minister Amari: Economic recovery trend expected to continue
- The five key takeaways from today’s Japan Q4 GDP data … the quick version of Japan’s woes
What a session on an Asian Monday!
GBP continued its strength right from the open in NZ. Cable traded to 1.6770 before finding some sellers, but barely fell 30 points before coming back strongly again and popping above 1.6800. there were all sorts of buyers about … but truth is trend can be a powerful thing and when all the chatter is said and done it gained 70-odd points from late US levels, dropping back a little from there.
GOLD and silver were stand out performers in the Asian morning also, gaining rapidly before tracking sideways as the session progressed.
USD/JPY opened a little weakly, recovered its losses but was sold heavily on the GDP data (see bullets, above) along with the Nikkei. Both bounced after this weakness, with plenty of administration jawboning and chatter ahead of the BOJ meeting today and tomorrow.
EUR/USD traded a little higher on the session, but was not where the action was in this timezone.
NZD and AUD had choppy sessions, ticking higher on the session but losing ground again. AUD ended a little higher than late Friday NY trading, Kiwi higher small also. The data from China over the weekend (see bullets, above), while confusing, were taken as overall a little bullish for the AUD. But one could easily argue the toss either way.
