Forex trading headlines for Asia Wednesday 23 April 2014
- RBA board member says would have preferred weaker Australian dollar
- More on the ‘People’s Bank of China (PBOC) cuts RRR for some rural banks in China’
- New Zealand data – Net migration in March 3840 (prior was 3540, revised from 3470)
- Obama says disputed islands within scope of U.S.-Japan security treaty
- Comments from Bank of Japan (BOJ) Governor Kuroda speaking in parliament
- BOJ deputy governor Nakaso: We are only halfway to meeting our price target
- Australia Q1 2014 CPI – all the results & what it means for the Australian dollar
- and … Australian CPI – analysts react
- China HSBC/Markit Flash reading for manufacturing PMI for April: 48.3 (vs. expected 48.3)
- New Zealand March credit card spending +8.1% y/y (prior was +5.9%)
Most action today was in the Australian dollar, with the release of the much anticipated Q1 2014 CPI figures (see bullets, above), and the April ‘flash’ HSBC manufacturing PMI (you guessed it, see bullets, above).
Australian inflation data came in at a lower reading than expected after the prior release, for Q4 2013, was a topside surprise. The AUD was marked down immediately, finding buyers around 0.9315/20. On the release of the flash manufacturing PMI out China 15 minutes later the AUD took another attempt at the downside, triggering stops below 10/15 and finding buyers again around 0.9300. It settled then, trading pretty much 00-10. A further round of sellers hit it below 0.9295, taking it to the day’s lows around 0.9280/85 as I write. As the AUD crosses fell, talk of cross-related stop loss selling gathered steam.
The NZD had a relatively subdued session ahead of the RBNZ rate decision due early in New Zealand time Thursday.
USD/JPY traded a little lower from resistance above 102.65, finding buyers sub-50. A tight range with not much action for it.
EUR, CHF and GBP were all marginally stronger against the USD, but as is often the case in the Asian timezone, ranges and activity were light. Based on today’s trading, rumours that USD/CAD is a floating exchange rate seem exaggerated …
