Forex news for Asia trading Tuesday 11 October 2016

  • Bloomberg reports China aims to further rein in speculative funds in real estate
  • RBNZ's McDermott: Inflation in Sep Q expected to be low, but to rise in Dec
  • More from Fed's Evans: Financial stability is important, but ...
  • China Premier Li: Global eco recovery is slow, protectionism on the rise
  • Goldman Sachs on oil - a production cut a greater possibility
  • Fed's Evans: US not at full employment
  • PBOC sets USD/CNY central rate at 6.7098 (vs. yesterday at 6.7008)
  • Australia data - Sept business confidence 6 (prior 6) & conditions 8 (prior 7)
  • Australia data - August Home loans: -3.0% m/m (expected is -1.5%)
  • Japan - BoP Current account for August: Y 2000.8bn (expected Y1502.7bn)
  • More on the UK Times: 'Hard Brexit' could cost 66 billion pounds a year
  • Britain should embrace weaker pound, says former BoE governor and currency guru
  • UK data: BRC sales like-for-like (September): +0.4% y/y (expected -0.3%)
  • Goldman Sachs warns that China currency outflows may be bigger than they look
  • Norway rejects post-Brexit trade pact with UK
  • Australia - weekly consumer sentiment: 117.5 (prior 117.9)
  • New Zealand - Retail card spending (September): +1.9% m/m (expected +0.8%)
  • UK Times front page: "Hard Brexit could cost 66bn pounds a year"
  • Regulation to limit risk-taking leading to bouts of extreme volatility in FX. (Hi GBP!)
  • Goldman Sachs Elliot Wave on GBP/USD: A corrective 4th wave before next leg lower
  • Trade ideas thread - Tuesday 11 October 2016

The stronger USD during the European and (holiday-thinned) US session carried on in Asia today. See the Europe/UK and US wraps for more on the overnight moves.

A weaker GBP kicked it all off as Tokyo got itself started after the Monday holiday in Japan, but the USD strength soon flowed through as a more across the board move.

EUR, CHF, yen, AUD, NZD ... all weakened against the USD.

NZD came in for particularly hard selling later in the session, with the release of a speech on inflation from RBNZ Assistant Governor McDermott in which he said (amongst other things) that further policy easing will be required. Pretty blunt. The NZD had been weak (as I said) but a further 40 points was sliced from NZD/USD quickly after this.

AUD/USD fell a little further with the kiwi, not to the same extent. A solid business conditions and confidence report today (for September), but weaker housing finance data meant more or less a wash for Australian data today.

Gold fell today soon but bounced to recover pretty much all its loss. Oil has done little.

Regional equities:

  • Nikkei +0.87%
  • Shanghai +0.37%
  • HK -1.11%
  • ASX 0% change as I update