Forex news for Asia trading Wednesday 1 November 2017
- ANZ on gold, the FOMC, & US tax talks
- Preview of today's Federal Open Market Committee meeting (yes, MOAR!)
- Bank of America / Merrill Lynch currency forecasts for the next 12 months
- The big 4 risks keeping Chief Risk Officers in Chinese banks awake at night
- UBS on gold - what will support it, what will weigh
- Its FOMC day! Preview of Federal Open Market Committee meeting.
- More from Japan finance minister Aso - yen is stable at the moment
- China - private manufacturing PMI (October): 51.0 (expected 51.0)
- US House Committee Chair Brady says will release tax bill on Thursday
- PBOC sets USD/CNY reference rate for today at 6.6300 (vs. yesterday at 6.6397)
- Japan finance minister Aso says want to work with BOJ to help the economy
- US House Committee Chair Brady says no change to Wednesday announcement
- FX option expiries - Wednesday 1 November 2017
- Morgan Stanley says to fade the knee-jerk on the new Fed chair announcement
- Japan Manufacturing PMI (final for October): 52.8 (preliminary 52.5)
- Moody's: Australian auto ABS and RMBS delinquencies fall in August 2017
- UK's NIESR expects BoE rate hike on Thursday, rates to peak in 2021
- UK data - BRC shop price index for October -0.1% y/y (prior -0.1%)
- More on "Release of US Republican tax bill delayed until Thursday"
- Release of US Republican tax bill delayed until Thursday
- Australia data - CoreLogic October home prices flat/slowed
- More on the NZ employment report - responses
- Australia - manufacturing PMI for October: 51.1 (prior 54.2)
- NZD update after big beats in the New Zealand employment report
- NZ Q3 unemployment rate 4.6% (exp 4.7%)
Welcome to the kiwi show .... again!
The New Zealand dollar jumped higher today to kick off Asia with across the board beats on the Q3 employment report. NZD/USD jumped 50-odd points to around 0.6890 before slowing a little and then eventually to a high just short of 0.6915 (your results may vary). In the following hours there was little fresh to impact it, NZD/USD slipped a little back towards 0.6885 before once again moving above 0.6910 but as i write not carrying on further.
USD/JPY also gained during the Asia morning, to a high above 113.90 around the Tokyo fix and since then its done very little indeed, back towards 113.80. There was some news crossing on the progress of US tax negotiations, initially the headlines said the expected Wednesday announcement was being delayed until Thursday. US House Tax Committee chairman Brady then said 'Nah' - the announcement would come on Wednesday as scheduled ... and then within minutes he had backpedalled and admitted that yes, it would be delayed until Thursday. On the bright side he said 'excellent progress' was being made. But he would, yeah?
Minor USD wiggles ensued, but net we've had USD/JPY stable around its session high and a weaker EUR/USD pretty much ever since. Its circa 1.1630 as I update. Cable is down a few points in line with the better tone for the USD while USD/CHF has edged up a few points to approach, but not quite get to, 1.
AUD/USD has had a small range but is higher on the session by just a few points. A star performer! (relatively)
The data focus for the day (after the NZ labour market report earlier) was the Caixin manufacturing PMI from China - it came in as expected and unchanged on the month (see bullets above). The detail, though, is perhaps a little concerning for the month's ahead.
Gold is down small.
Also, forgot to mention .... Japanese PM Abe is expected to order an extra budget at the Cabinet meeting today.
Still to come:
Today the Federal Reserve
- Preview of today's Federal Open Market Committee meeting (yes, MOAR!)
- Its FOMC day! Preview of Federal Open Market Committee meeting.
- FOMC preview
Tomorrow is the Bank of England
