Forex news for Asia trading on Thursday 14 October 2021
- More from BOJ's Noguchi, says Japan's economy is picking up
- ICYMI - OPEC's monthly report revised down its estimate for global oil consumption this year (but there's a but)
- A huge menu of Federal Reserve speakers coming up on Thursday
- BOJ's Noguchi says a reduction in monetary easing is not an option for Japan
- China September CPI 0.7% y/y (expected 0.9%) PPI 10.7% (expected 10.5%)
- Goldman Sachs expect a Fed mid-November taper, $15bn monthly pace
- PBOC sets USD/ CNY reference rate for today at 6.4412 (vs. estimate at 6.4372)
- Australian dollar remains little changed after the jobs data
- US hopeful of reaching an agreement with EU regarding steel tariff dispute by month-end
- G7 statement - Central bank cryptos could complement cash, and have further benefits
- RBNZ Dep Gov Bascand says heightened uncertainties remain, COVID-19 still poses risks
- Australian jobs report: Employment Change: -138K (vs. expected -120K)
- Australian Consumer Inflation Expectations October: 3.6% (prior 4.4%)
- Fed' Bowman says prefers taper to begin in November
- Singapore central bank with a small tightening of policy
- Further comments out of South Korea re potential won intervention
- Most Japanese firms want Kishida's extra budget to be worth at least 10 trln yen
- UK data - RICS monthly house price balance for September 68% (expected 68%, prior 73%)
- More from RBA's Debelle: Employment market is positive, but not much wage improvement
- Turkish lira (TRY) to its lowest ever in the wake of President Erdogan sacking more central bank officials
- RBA Dep Gov Debelle says climate change is a first-order risk for the financial system
- ANZ on high US CPI data - likelihood of transitory is falling
- Turkish President Erdogan fires three more central bank policymakers
- Trade ideas thread - Thursday 14 October 2021
- Fed Board of Governors Brainard speaking - no comments on economy nor monetary policy
- Private oil survey data shows large headline build in crude oil inventory
- Bank of Japan Governor Kuroda says (US) inflation is transitory
- S&P and NASDAQ breaks three-day losing streak
- New Zealand house price data for September, m/m fall, y/y rise
USD/JPY rose from lows just under 113.25 to highs above 113.50 during the session here in Asia, Not a large range but notable amidst the narrower ranges elsewhere across the board.
News flow was light but we did have plenty of data flow, most of the focus on the Australian jobs market report for September and Chinese CPI & PPI, also for September.
The Australian labour market report showed a larger than expected number of job losses in the month and a higher unemployment rate. Participation fell sharply. Hours worked rose. In short a mixed bag but objectively a worse rather than better report. It was largely shrugged off as a continuing impact of lockdowns covering nearly half of Australia's population. Further, both of the states impacted are on their way towards reopening, NSW having begun more quickly than Victoria's. Thus, expectations are of a Q4 econimc bounce back and better data flow ahead. AUD/USD is down about 15 points from its pre-data session high. RBA Deputy Governor Debelle spoke earlier in the session but with not much impact (the views of the RBA are well known by now, tapering ahead but no rate rise forecast until 2024).
From China the September CPI came in under expectations while the PPI surged to its highest in 26 years and above the median estimate. Rising commodity prices were largely blamed, rising prices of coal particularly noted.
The Monetary Authority of Singapore (Singapore's central bank) tightened monetary policy a little (see bullets above) in a surprise decision (the overwhelming consensus was for on hold)
In Turkey, President Erdogan fired another three policy setters at the country's central bank. Th Turkish lira fell and has since stabilised as we await local trade response.
BTC is a little higher on the session.
The Singapore dollar higher on the MAS decision:
