Forex news for Asia trading Monday 13 June 2016

Monday:

  • Commerzbank on China data today - may prompt PBOC to cut rates & RRR
  • China stats head Sheng - Prepared for Fed rate hikes
  • Japan chief cabinet secretary Suga: Aware of 'very volatile' moves
  • China - May Industrial Production 6.0% y/y (expected 6.0%)
  • PBOC sets USD/CNY central rate at 6.5805 (there was no Friday set - China holiday)
  • Japan Q2 MOF Business Survey
  • Want a job trading oil in China? You'll need "ability to withstand drinking bouts"
  • Trade ideas thread - Monday 13 June 2016
  • Guess who's voting for Brexit? (Spoiler alert ........ its AEP!)
  • Economic data due from Asia today - China focus
  • Monday opening FX rates - foreign exchange prices, early indications

Weekend:

The Soros way

  • ECB ready to "act if necessary" in case of Brexit
  • China FDI May yy -1.0% vs +5.0% expected
  • Webinar Rebroadcast: How to increase trust and profitability in your Forex trading
  • Roll up, roll up! It's time to ACT once again
  • Betfair reduce EU referendum Remain probability to 70%
  • Chinese data to look out for this weekend

Some big moves to begin the week in Asia today, with the headline giving a summary of the most notable. 'Risk' was on the back foot, with local equities lower. The Friday Brexit poll showing the 'get me outta here' side gaining momentum saw GBP slide, and this continued in Asia, weighing on markets.

GBP/USD plumbed a fresh low from Friday, while GBP crosses slipped as well, notably GBP/JPY which was hit hard as the yen found strength (GBP/JPY to new lows since April of 2013).

There are some notable USD/JPY barrier options in play now, with around $1.5bn at 106.00 and a $2.2bn biggie at 105.50 according to Asian sources. Something to take note of.

Data today was, most notably, China May industrial production, retail sales and fixed asset investment. None of these were far from expectations but they nevertheless were perceived as showing the Chinese economy continuing to the weak side. Industrial production was +6% y/y and retail sales +10% y/y ... but still the market wants MOAR!

It was an Australian holiday, which subdued AUD trade today.

As a side note, the holiday in Australia was the 'Queen's Birthday', a holiday which sees Australian government honours being handed to high-achieving citizens. RBA Governor Glenn Stevens was honoured, appointed a Companion of the Order of Australia (AC) for his contribution to finance and central banking, as well as his community work. Thoroughly deserved, well done to him for many, many years of service! He started at the RBA in 1980 and was made governor of the bank in 2006, just prior to the GFC hitting the fan. A tough gig, handled very well indeed.

Regional equities:

  • Nikkei -2.85%
  • Shanghai -0.78%
  • HK -2.5%
  • ASX was on holiday down the beach, back tomorrow