Forex trading headlines for Asia Monday 7 July 2014
Weekend news:
- Forex CFTC Commitments of Traders – week ending July 1
- ECB’s Lautenschlaeger: Does not see the ECB embarking on bond-buying in the near future
- ECB’s Noyer: Seems risk of deflation avoided in euro currency zone, inflation remains too low
- IMF does not see a “brutal slowdown” in China
- ECB’s Coeure says Eurozone interest rates to remain low for a long period of time
- Ukraine government troops regain control of Sloviansk
- IMF set to trim global growth forecasts
Monday:
- China Securities Journal: Finance Ministry researcher sees Q2 China growth at 7.4%
- Australia – AIG Performance of Construction index for June: 51.8 (prior was 46.7)
- New Zealand QV house prices for June +8.0% y/y prior was +8.2%.
- Goldman Sachs has moved its forecast for the first Federal Reserve increase to Q3 2015 (from Q1 2016 )
- And more detail here:Goldman Sachs moves its forecast for the first Federal Reserve rate hikes forward – more detail from client note
- Bank of Japan (BOJ) Governor Kuroda: Japan’s economy continues to recover moderately as a trend
- Australia – ANZ job advertisements for June: +4.3% m/m (prior -5.7%)
- New Zealand dollar traders – RBNZ “private” speeches this week. You need to be prepared for this.
- This Jon Hilsenrath article got some attention: As Food Prices Rise, Fed Keeps a Watchful Eye
The story of the morning in Asia was a gentle bid tone to the USD pretty much across the board.
USD/JPY gained to just below 102.20, while EUR/JPY tracked pretty much sideways. EUR/USD lost around 10 points, cable lost nearly 25. The USD even managed a small gain against the all-conquering CAD. Note the headline above saying Goldman Sachs have moved forward it forecast for the first Federal Reserve rate hike.
AUD and NZD, too, fell away against the USD, the kiwi $ getting below 0.8730, while the AUD tested towards (but not at or through) 0.9340. Improved ANZ job advertisement data from Australia saw the AUD bounce to around 0.9355 and in fact seemed to herald a small retracement of the USD across the baord, with some of the morning gains evaporating.
Gold drifted a little lower against the USD.
Oil was an interesting exception, it held steady as as the USD found some buyers in the FX markets, and when the USD did start to give back some of its early gains oil jumped around 30 cents.
The major Asian equity markets all lost a small amount of ground (as of writing).
