Forex news for Asia trading on Monday 18 October 2021

The early focus of the session was New Zealand inflation data. Official NZ CPI data comes out once a quarter and that for Q3 today was well above expectations, cementing another brick in the wall for further Reserve Bank of New Zealand rate hikes ahead. The NZD was marked higher on the data, topping for the session just above 0.7100 before reverting back to more or less unchanged over the following hours. The up and then down move for the NZD was played out similarly in AUD, EUR and GBP; US equity markets (globex index futures) also dropping back.

After the NZ data the wait was on for China's economic growth data for Q3 and 'Activity' indicators for September. Economic growth in the July - September quarter was disappointing, missing subdued estimates amidst the construction slowdown and energy controls. Also of impact of course were renewed coronavirus outbreaks and associated restrictions, severe weather events, supply chain congestion and the PBOC maintaining a relatively tight policy stance.

For the activity data, industrial production showed disappointingly slow growth. A key factor was a slump in steel output. The National Development and Reform Commission of the People's Republic of China (NDRC)had sought to slow steel output and have succeeded. September shopwed the weakest output since February of 2019 and production is now down around 30% over the past four months. The seasonally weak months of November and December are soon to come so a bounce does not appear imminent.

Major FX rates were little changed over the release of the Chinese data.

Oil traded higher on the session. BTC is higher awaiting the launch of futures ETFs:

Forex news for Asia trading onMonday18October 2021