ForexLive Asia FX news wrap: NZD a big mover
Forex news for Asia trading Wednesday 17 April 2019
- The BOJ is about to overtake GPIF to become the biggest holder of Japanese stocks
- RBNZ inflation data +1.7% y/y (prior +1.7%)
- Canada Alberta province election - conservatives said projected to win
- China comments on data strength - consumption main driving force
- AUD blowing past its session and overnight high - China data beats (stimulus kicking in)
- NZ PM Ardern rules out a capital gains tax
- China March Investment in fixed assets (excl. rural): 6.3% y/y (6.3%)
- China March Industrial production 8.5% y/y (expected 5.9%)
- China March Retail sales 8.7% y/y (expected 8.4% y/y)
- China Q1 GDP: 1.4% q/q (expected 1.4%) and 6.4% y/y (expected 6.3%)
- PBOC adds 200bn yuan via 1 year MLF
- Top US political pundit tips a Sanders vs. Biden Dems contest to run for President
- BOJ Amamiya spoke earlier - ready to ease more in event of financial crisis
- PBOC sets USD/ CNY central rate at 6.7110 (vs. yesterday at 6.7097)
- Singapore data: NODX -14.3% m/m … ugly indeed. Expected -7.1%
- Australian data - Westpac Leading Index for March up 0.19% m/m (prior flat)
- USD/JPY cracks through 112 and hits its highest since late Dec. last year
- More on Japan export data, those to the US are up, to China down
- US politics: President Trump says no to bringing US troops home from Yemen
- Japan trade balance for March: Y 528.5bn (expected Y 363.2bn)
- NZ CPI comes in lower than expected. Next week we get AUD CPI … any correlation?
- More on US/Japan trade talks - Lighthizer says raised concerns on very large trade deficit
- Japan economy minister Motegi says US/Japan discussion on FX should be left to finance ministers
- Substantial drop for the NZD on CPI data coming in much lower than expected
- New Zealand Q1 CPI : 0.1% q/q (expected 0.3% and 1.5% y/y (expected 1.7%)
- Ahead of the NZ inflation data - interview with RBNZ Orr (from Tuesday)
- Japan's economy minister Motegi says has not reached agreement with US on trade issues at the moment
- ICYMI: Satellite images show movement at North Korea’s main nuclear site
- ICYMI: Eurogroup President Centeno said future euro area budget will complement monetary policy
- Trade ideas thread - Wednesday 17 April 2019
- Private survey data shows a surprise draw in crude oil inventory
NZD was a big mover on the session here. It dropped sharply on the release of Q1 inflation data, which came in well under the central estimates. After dipping under 0.6860 briefly it has managed to steady.
The AUD dropped alongside the kiwi, though not to nearly the same extent. EUR, GBP also lost a few points.
USD/JPY was also a mover, it popped above 112.00, to highs circa 112.15. There was no clear catalyst to trigger such a move (and in the big picture a 15 point jump is small potatoes). After settling for an hour or so it dropped back under the figure and is now just a few points lower net for the session. there were comments on US/Japan trade talks and also from the BOJ dep gov today.
The big focus for the session was on data from China, Q1 GDP along with 'activity data' (industrial production, retail sales, investment) for March. GDP was a good number, But it was industrial production that came in at a huge beat (see bullets above). AUD (and other 'China proxy' trades) had a move higher. EUR, GBP, CAD, (even the hapless NZD), all gained against the USD.
Something to note on CAD. There has been a change of government at the provincial level. While this does not impact on national economic policy it may well give thought to the Federal ruling party (led by PM Trudeau). The Conservatives in Alberta took power on a policy of more energy extraction-friendly policy and tax cuts.
Still to come: