Forex news for Asian trading on Dec 11, 2015
- Goldman Sachs sees AUD/USD falling to 0.67
- Japan finance minister Aso: Extra budget spending around 3.5tln yen
- Citi's BOJ outlook - expect more easing in January, yen to weaken further
- Westpac: Australian Treasury to downgrade economic forecasts
- Nikkei reports "Income tax reform next on Tokyo's to-do list" (but not yet)
- NZ data - ANZ Consumer Confidence for December: -3.3% m/m (prior +6.8%)
- NZ data - Food Price Index for November: -0.2% m/m (prior -1.2%)
- NZ data: Manufacturing PMI for November: 54.7 (prior 53.2)
- China press: Guo Guangchang, also known as China's Warren Buffett, has gone missing
- USD/CAD hits fresh 11-year high
- Nikkei up 0.95%
- WTi crude down 25-cents to $36.31
- USD leads, AUD lags
USD/JPY was said to be led by leveraged accounts and exaggerated by buy stops. Eamonn noted chatter about real money accounts and a reserve manager on the bid. There wasn't news behind the wave of buying that started at 2300 GMT. Nikkei had a survey suggesting bonuses were up 3.3% in a sign inflation could be turning but that should be USD/JPY negative. Japanese stocks were said to help the pair.
The dollar was generally on the strong side as USD/JPY demand filtered through. EUR/USD fell to 1.0927 in a slow move from 1.0945 but has recouped most of the losses and is flat on the session.
Cable hasn't been so lucky and is down 18 pips. It had recovered all the post-BOE losses in US trading but how has slumped right back to 1.5142 from 1.5180. The BOE-low was 1.5110.
USD/CAD got a nudge from USD strength and mild weakness in oil. That's all it needs at he moment as it climbed another 30 pips to a fresh 11-year high at 1.3659. It's since pared back to 1.3646.
AUD/USD has now completely erased the employment report gains. It touched a low of 0.7236 and is down 30 pips.
