Forex news for Asia trading Thursday 11 May 2017

  • Jim O'Neill Says China Fears Are ‘Completely Overblown’
  • Goldman Sachs' financial conditions index near its "easiest" of the past 2 years
  • AUD slipping a little, China commodities lower
  • RBNZ Governor Wheeler: Does not expect inflation to move rapidly
  • PBOC sets USD/CNY mid-point today at 6.9051 (vs. yesterday at 6.9066)
  • More on the Bank of Japan consumption index ... firmest quarterly pace for 3 years
  • BOJ 'Consumption Activity Index' (ICYMI)
  • More on Moody's cut to 6 CAD banks
  • RBNZ Assistant Gov. McDermott: Not unhappy with fall in NZD after decision
  • More on Moody's CAD banks' downgrades ... wide cut!
  • Japan BoP Current Account Balance (March): ¥ 2907.7B(expected ¥ 2593B)
  • Daiwa on the BOJ ... all about YCC now, quantitative aspect ... a secondary
  • Moody's cuts RBC to A1, outlook negative
  • Some UK house price data from a little earlier
  • Goldman Sachs sees EUR lower against the USD
  • NZ data - April Food Prices -0.8% m/m (prior -0.3%)
  • Deutsche Bank cut US GDP forecasts on Wednesday
  • RBNZ Wheeler: Does not see inflation pressure ramping up quickly
  • You know what we really need right now? Another UK election poll!
  • Bundesbank's Weidmann is urging new French President Macron on quick reforms
  • Chinese publicly listed firms increasingly trying to boost incomes by buying WMPs
  • RBNZ Governor Wheeler press conference at the top of the hour - live feed
  • Forex technical analysis: NZDUSD tumbles after RBNZ does not budge.
  • RBNZ: No change to cash rate
  • The snapshot of the today's strongest and weakest.
  • RBNZ at the top of the hour - the announcement is different to other CBs
  • Economic data due from Asia today (and its RBNZ day for the NZD traders)

The bit down the bottom, ICYMI:

  • ForexLive Americas FX news wrap: Dollar stays in demand, oil jumps
  • US stocks mixed. Nasdaq closes at another record.

The Reserve Bank of New Zealand kicked off an active Asia time zone today, with as 'as expected' cash rate decision (on hold) but a surprise for the markets in maintaining a very clear neutral policy bias. There had been many expectations of a shift to a little more hawkish, but the RBNZ was having none of that.

NZD/USD was marked lower by around a big figure immediately, further 'neutral' commentary from Governor Wheeler (and Assistant Governors Spencer and McDermott) cemented (cement boots) a heavy kiwi for the session; its barely off its lows as I update.

NZD/USD to an 11-month low today

AUD/USD was marked lower on the RBNZ announcement too, but this didn't last. It did sit around and below 0.7360 for most of the session and lost a little more as metals futures fell in China (iron ore futures in China hit a 6 month low) and it too is barely off the session lows as i post.

And so to CAD; Moody's cut its outlook and rating on 6 banks, citing concerns on private-sector debt & elevated housing prices leaving those banks more vulnerable "to downside risks facing the Canadian economy than in the past."

USD/CAD jumped to around 1.3720 and has since added to circa 1.3740 before stabilising somewhat.

EUR/USD was an outperformer, ticking up 30+ points for the session. USD/CHF and GBP/USD are net little changed.

USD/JPY has lost 20 or so points from early (and US time) highs just above 114.30. It was not where the action was today, though.

Gold dipped early to retest its US time low but has since bounced a few dollars, oil is slightly up also.

Regional equities:

  • Nikkei +0.15%
  • Shanghai -0.26%
  • HK +0.25%
  • ASX +0.42%