Forex news for Asia trading 20 June 2017

  • Fitch forecasts China GDP growth: Slightly below 6% for 2018 & 2019
  • Australian PM Turnbull: Govt to implement gas export regulations
  • Some Australia news - NSW (Sydney) wants to build 75K new homes next year
  • Asia FX update approaching midday on Tokyo - small ranges
  • GBP: Further Downside Near-Term; What's The Trade? - BofAML
  • More on the Moody’s downgrade of Australia’s largest banks - has focused attention on mortgage risks
  • RBA June meeting minutes: Watching labour and housing markets carefully
  • PBOC sets USD/CNY reference rate for today at 6.8096 (vs. yesterday at 6.7972)
  • China - PBOC's Zhou: Global economy still has uncertainties
  • NZ - ANZ consumer confidence for June +3.1% m/m (prior +1.8%)
  • NZD traders - heads up for the dairy auction today (London time)
  • Fed's Evans again: Could delay next hike until December
  • ICYMI - Moody's downgrades Australia's main banks
  • Australia - ANZ-Roy Morgan weekly consumer confidence: 112.4 (prior 112.9)
  • More from Fed's Evans - downplays current inflation softening
  • UK - CBI boosts GDP forecasts: 2017 +1.6% (prior +1.3) & 2018 +1.4% (prior +1.1)
  • Reuters Tankan: Japan manufacturers index +26 (prior +24)
  • More from Fed's Evans - says he didn't dissent at FOMC b/c economy doing quite well
  • Goldman Sachs' Blankfein on the telly - says Trump deregulation push is bogged down
  • Reuters with more from Fed's Evans - "serious policy outcome miss" on inflation
  • RBNZ meet this week. No hike coming, but this is not a preview.
  • Fed's Evans: need very gradual hikes, slow reductions in b/s
  • "EURUSD currently trapped 1.1110 to 1.1300 range... bias is for a deeper pullback"
  • Aussie carjacker foiled, he sounds like a real stick head
  • Goldman Sachs: RBA's Lowe emphasizing easing downside risks for OZ economy
  • Trade ideas thread - Tuesday 20 June 2017
  • Canada fin min - need to be focused on risks around consumer debt, trade
  • Economic data due from Asia today (& RBA meeting minutes)
  • ICYMI ForexLive Americas FX news wrap: Stocks jump to another record. Dudley upbeat
  • & ICYMI too ... US stock end the day with strong gains

Federal Reserve Chicago head Charles Evans was on the wires today, speaking from an event in NY. Evans does tend to lean towards the dovish end of the spectrum; today he spoke of wanting more data to show inflation was firming before the next rate hike, which he suggested could be delayed through to December this year. He does favour a move to begin reducing the size of the Bank's balance sheet.

Further on the central bank front today we had a speech from the PBOC Governor Zhou and also minutes released from the RBA's June meeting (back on the 6th). Neither had much impact on forex.

The yen weakened a little further early, pushing yen crosses and USD/JPY generally up a little. USD/JPY topped ahead of 111.80 and has been sideways since in a narrow range.

EUR/USD has not done much, ticking to the better by a few points towards 1.1160 while USD/CHF dripped back from its move above 0.9760 early.

Even cable has been sedate with little more than a 15 point oro so range. NZD/USD is pretty much ditto and is more or less unchanged net on the session, AUD/USD is a wee bit softer but again, very little in it. USD/CAD is barely changed.

Gold dipped a dollar or so but is back to be little changed on the session,

Bring on Europe!

Regional equities:

  • Nikkei +1.13%
  • Shanghai +0.06%
  • HK -0.01%
  • ASX -0.39%