Forex news for Asia trading Monday 17 December 2018
- ANZ on gold into 2019 and what will bode well for it
- Oil price slipping - Goldman Sachs technical analysis says serious downside risk
- PBOC says chill out on the 160bn yuan injection today
- Japan press: Hitachi reaches deal worth $7bn for ABB's power grid business
- PBOC sets USD/ CNY mid-point today at 6.8908 (vs. Friday at 6.8750)
- Japan press report ABB, Hitachi to hold press conference today
- PBOC says it will open up financial markets in an orderly way
- Head of one of Australia's big four banks said to be taking extended leave
- Singapore trade data for November, big miss for exports (NODX)
- UK data - Visa data indicates biggest fall for consumer spending since July
- UK data - Rightmove house prices for December: -1.5% y/y (prior -1.7%)
- BOJ Tankan report (part 2) - inflation still seen missing target
- Italy budget - Governing coalition leaders and PM in total agreement
- BIS: 'sharp correction … volatility … turbulence … tightening … '
- Australia says expects higher budget surplus (2019/20)
- France’s budget deficit likely to overshoot the EU limit of 3% of GDP next year
- Trade ideas thread - Monday 17 December 2018
- Weekend - North Korea warning of a return to “exchanges of fire”
- New Zealand services PMI for November: 53.5 (prior 55.4)
- Swiss firm ABB, Japanese firm Hitachi – potential USD11bn announcement Monday?
- Weekend UK - insults exchanged! Second Brexit referendum, yes, no, maybe …?
- Monday 17 December 2018 - foreign exchange prices, early indications
- What's most important for traders this week?
- Entries: To fight for every pip, or not?
- Draghi celebrates 20 years of the euro
- May warns Merkel and Macron that Brexit deal is dead unless they compromise
- US interior secretary Ryan Zinke to leave White House
Early Monday morning as NZ and then Australian markets got going saw a few minor moves for FX rates. As most know, this time of the forex trading week has very low liquidity indeed, which can see moves on not too much information at all. Weekend news that there was to be a sale of business interest by Swedish/Swiss firm ABB to Japanese firm Hitachi worth around 11bn USD had a minor impact. By the time news such as this dribbles out the forex hedging has been done.
USD/JPY spent the balance of the session ticking just a few points higher, from under 113.30 to 113.50 for a small range only.
USD/CHF did little more, from under 0.9960 to above 0.9985 only for the day here.
We had the usual array of weekend Brexit headlines, with suggestions (denied by the UK government) of a second referendum, Ireland hinting at a delay to Article 50 in the case of the UK wanting to renegotiate the Brexit deal already worked out with the EU and a few more. GBP has not traded a big range, from above 1.26 at one stage to circa 1.2570/75 later.
EUR has edged a few tics to the better against the USD, tiny range.
The Australian government released their update to the budget, with the current year deficit forecasts bumped a little lower while later year surplus estimates bumped a little higher. They again provided laughingly optimistic wage growth forecasts. RBC highlighted the wage growth forecasts as a 'flaw', 'the international experience would suggest that this will prove challenging'. Quite.
The Australian dollar has done little, not much outside 0.7170/80. NZD/USD a similar small range, little more than 0.6785/0.6800 for the session.
The People's Bank of China weakened the onshore yuan today and injected a hefty 160bn yuan into local money markets.
Yet to come Monday and this week:
- FX option expiries for Monday 17 December 2018 10am NY cut
- AUD traders - heads preview up for RBA minutes due Tuesday 0030GMT
- Bank of Japan meet this week - preview of what to expect
- Big US week coming up - FOMC rate hike expected
