Forex news for Asia trading Wednesday 13 January 2016

  • You think China markets are frantic now? Wait until they are fully caffeinated
  • More on Jeff Gundlach's comments earlier
  • Standard & Poor’s says the outlook for corporate borrowers worldwide worst since GFC
  • Offshore yuan lending rates decline from their record yesterday
  • China trade balance, US dollar terms out now
  • China customs spokesman on the trade data - weak global demand
  • Yuan stability, China exports improve ... 'risk' liking it
  • China December trade balance: surplus 382.05 bn yuan (338.8bn expected)
  • China stockmarket opening indications - Shanghai Comp to open 0.6% higher
  • People’s Bank of China (PBOC) sets yuan reference rate at 6.5630
  • Australian November job vacancies data: 3.5% (prior +2.7%)
  • Plans in place for Iran to return US sailors early Wednesday - US defense official
  • Here is why analysts and pundits are getting the yuan fix rate wrong
  • Japan money stock for December: M2 +3.0% (expected 3.3%), M3 +2.5% (2.7%)
  • China ex-FX official warns of a 'one-way' expectation for yuan
  • ECB's Praet: No change in ECB monetary policy
  • NZ data - QV House Prices for December: 14.2% y/y (prior 15.0%)
  • China People's Daily: Yuan exchange rate should be determined by onshore market
  • Gundlach comments hitting the wires - gold, commodities, Federal Reserve
  • American Petroleum Institute (API) crude oil inventories draw of 3.9 mln bbls
  • Greek central bank Governor: No Grexit risk if country meets bailout conditions

A quiet start to the session ahead of the now regular China opening focus. It was enlivened somewhat by a much better performance from AUD and NZD. Both gained in a steady fashion once Tokyo became active, with the AUD helped along a little further by strong job vacancy data ahead of tomorrow's employment report. Meanwhile USD/JPY managed a steady tick higher also while EUR and CHF both lost a little ground against the USD. A pop in oil prices helped along by a crude inventory draw reported by the American Petroleum Institute was soon reversed.

The yuan fix rolled around and the People's Bank of China set the mid rate at a more or less unchanged rate for the 4th day in succession. Stock markets in China opened a little higher on the signs of stability, and 'risk' further consolidated its earlier tick higher.

Chinese December trade balance data hit a half hour later and it was a trifecta of better news out of China with an export performance well in advance of expectations.

'Risk' once again accelerated higher.

AUD, NZD and USD/JPY all added to prior gains with a little more weakness in EUR and CHF also.

The 11.15am yuan HIBOR fix a few hours later showed a plummet to 8.3% from yesterday's blow out 66.8%. Note, though, 8.3% is still well above its latest 6-month average of 3.8%.

Regional equities with Shanghai closed for the lunch break:

  • Nikkei +2.65%
  • Shanghai -0.1%
  • HK +2.38%
  • ASX +1.17%