Forex news for Asia trading Wednesday 11 November 2015
- S&P's Sheard: Almost certain the Federal Reserve will raise rates in December
- DBRS to discuss Portuguese politics in crucial rating review
- Russia is exploring strategies to try to block the IMF’s next loan payment to Ukraine
- The 2 stand outs from today's Australian consumer sentiment survey
- Goldman Sachs' Lau: China's govt unlikely to keep buying stocks amid market calm
- Deputy head of the Communist Party of Beijing under investigation
- The new reason to be short EUR/USD, 4 important nuances
- Update on the Chile earthquake
- BOJ Governor Kuroda: Committed to reaching 2% goal ASAP
- Chinese defaults spread - Cement maker to miss bond payment
- China Q3 Current Account surplus $63.4bn
- BOJ's Harada: Japan's economy continues to recover moderately
- PBOC sets yuan reference rate for today at 6.3614
- USD/JPY stop loss sell orders hit
- RBNZ's Wheeler: Too soon to say if Auckland house price inflation easing
- Japan data - Money Stock for October
- Reuters Tankan: Japan manufacturers index 3 in November (prior 7)
- Australia - Westpac Consumer Confidence Index November: +3.9% m/m (prior +4.2%)
- Rolls Royce issues car recall. For just one. Yes, one car.
- RBNZ & Wheeler (ICYMI) ... increased risks to NZ’s financial system
- Fed's Evans: 'I'd like a return to a normal balance sheet for Fed"
- American Petroleum Institute (API) crude oil inventories +6.3million bbls
The session kicked off with the regular tuesday afternoon API oil inventory data from the US, showing a far above expectations build in stocks (inventory), sending oil prices lower. The retrace of the fall has so far been shallow.
It was a more active day for forex markets in Asia this session after the prior two days this week here have been subdued. Wednesday was characterised by weakness in the USD pretty much across the board. This is Asia, so the moves were not huge, but they were notable nonetheless.
I'll start with the NZD and AUD as there did seem to be catalysts for the moves higher in these two ... the NZD rallying post the RBNZ and Wheeler in the NY afternoon and the AUD higher after very good consumer confidence data. It didn't seem enough to lead to a near 50 point AUD/USD rally, but there you have it. We are only a little off the session high for AUD and NZD as I update.
News in the later part of the NY timezone of the fall of Portugal's government has not seen the EUR fall since. Its been nearly one-way traffic during Asia with a 100+ point move higher from late Europe/early NY lows on Tuesday. Cable gained also during Asia, tripping stops above 1.5150 and shooting to 1.5180+ before settling back just a little. Chatter across the market was 'real money' accounts buying.
USD/CHF hasn't missed out on the action today, Its down 60 or so points from late Europe/early NY highs. The CHF seems to be being troubled by the reports of the Swiss '100% fractional banking' referendum, though I haven't heard much in the way of chatter on this at all yet.
USD/JPY was lower as well, stops under 122.90 playing a part. Japanese data and comments from Yutaka Harada, in his first public speech as a member of the Policy Board at the Bank of Japan passed without much impact. Later comments from BOJ Governor Kuroda saw USD/JPY make a marginal new low for the session from which it has bounced small, up 15-odd points or so as I type.
China news was doing the rounds today. A financial group in Hong Kong said they see Chinese shares doubling in 3 years. That did get a bit of a giggle as the Shanghai Composite already doubled in 2015 ... and then promptly halved. Who needs 3 years?
More seriously, though the market did a Swift and managed to 'Shake It Off', news of another corporate bond default did the rounds (see bullets, above).
Gold popped higher in the Asian morning and is (as I update) $7 or so above overnight lows.
Regional equities with Shanghai closed for the lunch break:
- Shanghai +-0.42%
- Nikkei +0.10%
- HK -0.02%
- ASX +0.33% (yes ... the ASX is in the green today!)
Still to come: China data
