Forex news for Asia trading Wednesday 16 March 2016

  • Moody's on Saudi banking system - outlook to negative from stable
  • Negative Rates Push Japan Banks From JGBs Toward Foreign Assets
  • Oil update for Asia 16 March 2016
  • Chinese Premier Li Keqiang comments
  • FOMC preview from BoA / Merrill Lynch
  • BOJ's Kuroda is still going: negative rate not targeting the stock market
  • PBOC sets USD/CNY central rate at 6.5172
  • So ... it looks like Silvio Berlusconi is leading the Republican nomination
  • RBNZ says stress tests show banks can withstand dairy downturn
  • BOJ's Kuroda: Will ease again in needed
  • Stiglitz in Japan comments on mon pol, global coordination
  • Australia data - Westpac Leading index (February) -0.15% m/m (prior -0.04%)
  • Westpac trade recommendation, buying USD/CAD on a dip
  • China Securities Journal commentary says still room to ease monetary policy
  • What to expect from the FOMC - some quick bank views
  • NZ Q4 BoP Current Account Balance: $ -2.614bn (expected -2.875bn)
  • Trade ideas corner - Wednesday 16 March 2016
  • Japan wage hikes won't be doing any favours for Abenomics
  • Japan reports Paul Krugman invited to economic panel next week
  • Oil - American Petroleum Institute (API) data: Build of 1.5 million bbls

The countdown to the FOMC began in Asia today, but with US politics, China's President Li speaking, and Kuroda in the Japanese parliament all providing plenty of activity.

In US politics, Donald Trump and Hillary Clinton had good Tuesday evenings, coming out on top in the Primaries decided. Marco Rubio 'suspended' his campaign, suspended as in he is gone from the race. John Kasich won one contest with Trump sweeping the others. Hillary Clinton claimed victory for the nomination, and she does indeed look unbeatable by Sanders now.

To markets ...

American Petroleum Institute data kicked off the session here, showing a build in inventory lower than expected, which gave oil a boost (and sustained through the session).

We had data from NZ and Australia, none of which didn't make many ripples in the pond. Surprisingly it was comments from Kuroda that seemed to impact today.

He was in the Diet for the umpteenth time, saying he'll ease more if he deems it necessary and so forth, pretty much the usual from him; but this time he got some traction.

Yen lost ground, with USD/JPY stacking on nearly half a big figure and gains also in yen crosses.

An RBNZ report on stress tests on NZ banks hit the wires next, and although it was as upbeat as such a dour subject can probably be it highlighted the plight of dairy prices (another fall during the Tuesday day in UK time) the dairy industry, and the banks that lend to it (i.e. all of them!), and the headlines weighed on the NZD. The headlines are in the bullets, above, and Bloomberg have more detail here if you're after it.

The People's Bank of China yuan mid-point reference rate setting was next, with another weaker set for the CNY. AUD and NZD had been on the slide a little beforehand, but today's setting saw both dip further again, and then soon establish the low for the session before a small bounce and more or less sideways since.

Comments from Li Keqiang had little impact, there was not much different from what we've been hearing (more assurances).

EUR was little changed on the session (stronger against the yen, of course, see comments above), CHF a few points weaker against the USD, and cable lost a little more ground.

Gold is like a rock (a shiny yellow one), sitting there little changed on the day.

Regional equities:

  • Nikkei -0.68%
  • Shanghai +0.14%
  • HK -0.54%
  • ASX +0.01% (Thanks for that, ASX, good effort)