Forex news for Asia-Pacific trading Dec 17, 2015:

  • New Zealand Q3 GDP +0.9% q/q vs +0.8% exp
  • New Zealand fin min: Weaker NZD is desirable
  • Japan Nov trade balance -379.7B yen vs -449.7B yen expected
  • Argentina scraps FX controls
  • Video: Spain's Prime Minister punched in the face at election stop
  • Blame the weather: New Zealand edition
  • FedEx trims 2015 US growth forecast
  • Third Avenue cancels plans to put assets in liquidating trust
  • Another fresh high in the Chinese yuan fixing
  • Nikkei up 1.55% to 19345
  • Shanghai Comp +1.6%
  • WTI crude down 12-cents to $35.41
  • USD leads, NZD lags

There has been great follow-through in US dollar longs in Asia-Pacific trading. There hasn't been much shape to the moves. Rather, it's been a steady bid underpinning the dollar on all fronts.

EUR/USD was trading just above 1.09 as we got underway in Asia and hit stops below the post-Fed low of 1.0884 and continued lower to 1.0865 has a tiny bounce and then continued down to 1.0833 in a steady move. Last at 1.0846 as some broad, minor USD selling hits.

USD/JPY was at 122.25 and quickly moved up to 122.45 as Tokyo came online. The Japanese import and exports numbers were concerning but general USD buying was the story in the rally as high as 122.64 before a slip back to 122.45. Longs are lots of people's post-Fed favourite trade.

Cable had been downright soggy until a rebound in the past hour. It was slow and then faster selling to 1.4925 from 1.4985. Last at 1.4950.

The kiwi GDP data led to a quick move 20 pips higher to 0.6800 but that was the high of the session and the combination of general USD strength and some light jawboning from English on Bloomberg TV took it down to 0.8720.

USD/JPY has been a quiet one. Oil has been slipping but Asia-Pac traders have tuned into the pair as it settles around the mid-point of the 1.3750 to 1.3840 post-Fed range. That pair was particularly choppy after the Fed and specs hate CAD so maybe they packed up and are looking elsewhere at the moment (who could blame them).

AUD/USD was on the defensive in a choppier trade down to 0.7160. The low matched yesterday's low before a bounce to 0.7180 in the past hour. Watch to see if it breaks and runs stops. That's where my eyes would be in the hours ahead.

The events to watch in the day ahead probably aren't on your economic calendar. They're all related to the technical parts of the Fed hike and they're here: Five critical events to watch on Thurs and Friday.

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