ForexLive Asia FX news: Weak Japan GDP, weak Aussie wages growth
Forex and Bitcoin news for Asia trading Wednesday 16 May 2018
News and data:
- Some North Korea headlines crossing .... they are fickle bunch
- A quick take on the Australian wage data: remains very weak ... real wages barely rising
- China home price data for April: All China new home prices +0.5% m/m (prior +0.4%)
- Australia Q1 Wage Price Index: 0.5% q/q (vs. expected +0.6%)
- PBOC sets USD/ CNY mid-point today at 6.3745 (vs. yesterday at 6.3486)
- Japan Q1 GDP recap - economy stinks for first time in 2 years
- Australia: Westpac monthly consumer confidence index (May) -0.6% m/m (prior -0.6%)
- Japan Q1 GDP (prelim): -0.2% q/q (expected flat at 0.0%)
- Fed's Brainard comments on cryptocurrency: BTC price swings limits its role
- BTC: More on the eToro news (offering cryptocurrency trading in the US)
- More from BoE's Broadbent: (on fwd guidance) - traders should grow the **** up
- BoE deputy gov warns UK economy risks once-in-a-century slump
- Trade ideas thread - Wednesday 16 May 2018
- Oil - private data shows build in US crude inventory
Japanese Q1 GDP and Australian Q1 Wage Index the data focus for Asia FX today. Both were a wee bit sad.
Japanese economic growth slipped into contraction in the first quarter, with Q4 2017 revised lower also. The details are in the bullets above, but in a nutshell a very poor performance indeed. If there are any brighter spots - the deflator (an inflation measure) moved a little higher and analysts do expect Q1 to make a low point in GDP and for an improvement from here.
In Australia we got another weak reading for wage growth, the q/q missing expectations. Ming and retail continue to disappoint while public sector wages (eg. health sector a relatively strong performer) better. If there is a bright spot its that bonus payments were higher.
The yen did little on the Japan data, USD/JPY has lost a few tics on the session only (North korean headlines given a few points to the yen)
The Australian dollar retested its overnight low circa 0.7450 and bounced back to around 0.7470-odd. There is another bid data point to come in Australia again tomorrow (jobs report for April).
NZD/USD pierced its overnight low but there was little foillow thorugh and it too has bounced20+ points.
Elsewhere, currencies traded subdued ranges.
Still to come:
- FX option expiries to take note of for Wednesday 16 May 2018
- More Australian labour market data due tomorrow - preview of the April jobs report
- Heads up for large option expiries due later this week (EUR, yen)