ForexLive Asia FX news wrap: AUD lower following RBA Minutes
Forex news for Asia trading Tuesday 16 April 2019
- Westpac on the RBA April meeting minutes - 'RBA set out the conditions for a rate cut'
- Kuroda says BOJ can ease more. But can they? Bar is high says CIBC.
- RBNZ's Orr says NZD is currently around a 'happy space', RBNZ easing bias remains in place
- BOJ Gov Kuroda (still going) - will consider easing further if momentum towards 2% inflation is lost
- BOJ Gov Kuroda says Bank ETF purchases are not for stock market stability
- More on the RBA minutes … so when do they cut?
- China March house price data: All China home prices +0.6% m/m (prior +0.5%)
- RBA April 2019 meeting minutes: Likelihood of near term rise in rates low
- PBOC sets USD/ CNY reference rate for today at 6.7097 (vs. yesterday at 6.7112)
- BOJ's Kuroda says Japan inflation has been weak especially given tight jobs market
- Fitch Ratings says banks in AAA jurisdictions face rising household debt risk
- Fed's Rosengren: Hard to change inflation expectations just by printing money
- Fed's Rosengren says growth has slowed, economy still doing quite well
- BlackRock liking US markets, China, emerging markets … Goldilocks conditions!
- Australia ANZ Roy Morgan weekly consumer sentiment survey: 115.3 (prior 113.2)
- Japan economy minister Motegi on talks tih US on trade - already agreed on FX
- New Zealand ponders 'national interest' test on inbound investment
- Goldman Sachs technical analysis of the Australian dollar - AUD/USD basing?
- Fed - If Powell hikes before the 2020 election, pressure to resign will be great (does he care?)
- ICYMI - Morgan Stanley 'trade of the week' is long EUR/USD
- Here is some good news - two towers at Notre Dame have been saved
- Trade ideas thread - Tuesday 16 April 2019
- Westpac update the AUD, NZD outlook - eyeing RBNZ, Fed
The Australian dollar was the big mover during the session, dropping a third of cent upon the dovish RBA minutes. The central bank says it cannot see a scenario that the likelihood of a rate hike was low, that it is watching inflation and unemployment as triggers for a rate cut, and that despite rates being low a further reduction would be of assistance for the economy. More detail in the bullets above but those are the salient points.
Since its fall the AUD has barely bounced, its under 0.7150 as I update.
EUR and GBP fell alongside as did the kiwi. CAD lost further ground after its drop during the US session. RBNZ Governor Orr gave an interview to Reuters, in which he described the NZ dollar as being around a 'happy place'. I guess that means he is comfortable with its current level. Again, see bullets above for further.
In addition to the RBA and RBNZ we also got comments from Fed Boston head Rosengren and also BOJ Governor Kuroda. Despite Kuroda talking on and on USD/JPY has barely moved on the session.
Gold is off a little.
Still to come:
