Forex news for Asia trading Thursday 10 March 2016

China

  • China CPI likely to be mild in the months ahead says ANZ
  • China CPI and PPI ... No, this isn't great data
  • China: February CPI 2.3% y/y (expected 1.8%) & PPI -4.9% y/y (expected -4.9%)
  • PBOC sets USD/CNY mid-point today at 6.5127
  • PBOC injects 20bn yuan via 7-day reverse repos
  • China CPI data coming up soon. Here's why China's inflation 'target' is different
  • PBOC Prof wants increased scrutiny to avoid sub-prime crisis

Japan

  • Japan court injunctions to slow return of nuclear power
  • Japan Abe adviser says BOJ probably won't ease next week
  • BOJ Governor Kuroda: Next sales tax hike impact to be about half of last
  • Japan finance minister Aso: Not very confident Japan won't go back to deflation
  • Japan data: February PPI -3.4% y/y (vs. expected -3.4%)

New Zealand & Australia

  • Australian Stats Bureau revised employment data - employment lower (not by much)
  • RBNZ Governor Wheeler's communication criticized after policy 'U-Turn'
  • Australia - Consumer Inflation Expectations (March): 3.4% (Prior 3.6%)
  • RBNZ's Wheeler: More rate cuts will depend on data
  • FX analysis on the RBNZ: "NZD exchange rate ... a fairly weak warning"
  • Westpac on the RBNZ rate cut: Not surprised but surprised

Oil

  • Oil market comments from Barclays and Deutsche
  • Latin american oil producers meeting postponed - Ecuador oil minister
  • There are 550 million barrels of oil missing. Where are they?
  • ECB meet today - preview and what to expect for the EUR
  • Bank of Korea leaves rates unchanged (as expected)
  • UK data - RICS House Price Balance: 50% (expected 50%)
  • Time to update your lingo - the "Yellen call"
  • Overnight press: Senior European bankers voice concerns over ECB cut
  • Trade ideas thread for Thursday 10 March 2016

Yen was a mover in Asia today, with USD/JPY climbing from its low around 113.20 to above 113.75. Its seems the market is expecting no policy action from the BOJ next week, but that didn't stop the yen from weakening against the USD (yen is barely changed against the EUR, though EUR/JPY dipped in the Tokyo morning only to have recovered as I update). The Japanese finance Minister today let slip that he was not very confident Japan won't go back to deflation.

EUR/USD lost some ground, from around 1.1 to 1.0970 ahead of the ECB today. USD/CHF is little changed, while cable is down around 30 points.

AUD and NZD both moved lower in the NY afternoon, the rate cut from the RBNZ (coming contrary to most of the market's expectations of an on hold decision) the catalyst. And both have remained better offered today since, NZD the most heavy showing little impulse on any tick higher and nudging lows as I update.

Chinese data today was CPI and PPI for February, the PPI on expectations but the CPI coming in notably higher - on the back of a strong jump in food prices. The headline was greeted with hope for better times to come from China, but it didn't take long for the details to return us to a more sober view that little substantive had changed.

Stock markets in the region were mixed: Japan up, China down.

Gold is barely changed from late US levels, oil is currently sideways near the session high.

Regional equities

  • Nikkei +1.39%
  • Shanghai -1.12%
  • HK +0.78%
  • ASX -0.02%