Forex news for Asia trading Friday 15 November 2019
- Japan data - Industrial production, final, for September +1.7% m/m
- BOC Gov Poloz says wage inflation is above 4% in most measures
- US retail sales data is due Friday - preview
- China's state planner says it approved 44bn yuan of projects in October
- More from RBA's Debelle: Lower rates impact through lower FX rate, debt payments
- Moody's says Japan is exposed to an escalation in global trade protectionism
- Japan - US trade deal approved by Japanese lower house committee
- RBA's Debelle - non-performing loans currently pose little risk
- RBNZ's Hawkesby say February monetary policy meeting is 'live'
- As expected the PBOC has lent using the medium term facility
- China house prices for October +0.5% m/m vs. +0.53% in September
- FX option expiries for Friday November 15 at the 10am NY cut
- PBOC sets USD/ CNY mid-point today at 7.0091 (vs. yesterday at 7.0083)
- Former Sec State Kissinger says expects a US-China trade deal
- China's latest RRR cut not enough to offset tax payment - may need to boost liquidity
- Australian prop shop looking to hire traders in South Korea
- Economists on the timing of the next ECB deposit rate cut (spoiler - Q2 2020, not Q1)
- More from RBNZ Gov Orr - forward guidance on future policy is important
- White House Kudlow says we are getting close to a trade deal with China
- RBNZ's Orr says interest rates need to remain low for a long time
- FT report Hedge funds taking the blame for a drop in JGB prices
- Trade ideas thread - Friday 15 November 2019
- New Zealand - BusinessNZ manufacturing PMI for October: 52.6 (prior 48.4)
White House economic adviser Larry Kudlow spoke early in the session, speaking of positive developments in (the phase one) trade talks with China (see bullets above). We've heard this many times only to be disappointed but, hey, optimism sneaked into the session with a better tone for risk FX.
AUD, of course, traded a bit higher (and with yen losing ground AUD/JPY had a good session). AUD was further helped by moves out of China to add liquidity to the banking system. This was not really a 'stimulus' move but when you're in a good mood you take it, right? AUD/USD is up on the session, as is NZD/USD.
The kiwi got an initial boost from a good bounce in the latest manufacturing PMI figure out today, back into expansion. Comments out of the RBNZ softened the rise a little but its nevertheless very close to its session high as I update. As is AUD/USD. CAD was also a gainer.
Other news and data flow was non-impactful.
USD/JPY and USD/CHF are both a little higher on the session, as is EUR/USD. Cable you can slot into the unchanged basket - barely moved on the day.
