Forex and Bitcoin news for Asia trading Wednesday 21 February 2018

A few items of note from the timezone today:

  • Australian data
  • Comments from Japan's 'top currency diplomat' (ps. Japan's top currency laundromat is bitcoin ... I'll get my coat)
  • Higher UST yields (again)

The data from Australia was for Q4 construction work (down bigly in the quarter, which was expected and its being skewed by huge LNG platform import influence). Of more focus was the wages data, which beat expectations but is still well below average.

The Australian dollar had a very small pop in the wake of the wages beat, but it did not sustain and it soon fell away to be a poor performer on the session.

AUD/USD was helped lower by a stronger USD, which was manifest very clearly in USD/JPY. Comments from Japan's Masatsugu Asakawa, vice minister of finance for international affairs (he's the 'top currency diplomat' I referred to above) were read as yen negative (they were) and alongside higher UST yields on the session the yen lost ground. Not just against the USD, EUR/JPY (for example) is up 70+ points from its lows (well, it was at one stage).

Other currencies didn't do a lot, but have come off a little against the USD. CAD, EUR, CHF, GBP, NZD all down against the big buck. Oil and gold, too, both down on the session here.

ps. While this is the wrap and not in the 'education' category, check this out from UBS (I think its of direct relevance to the UST - USD move today):

  • short-term price action tends to be driven by market themes which come and go in an often surprising and abrupt fashion

pps. don't be a hedgehog


Still to come

And, a plug for the Asian time tomorrow:

You won't see this on the go-to economic calendars (which is a good reason to go to ForexLive), but from Australia tomorrow we get more wages data, and this one is usually a better guide than the wage index we got today. From the Australian Bureau of Statistics, results of the twice yearly Survey of Average Weekly Earnings:

  • Contains estimates of average weekly ordinary time earnings
  • and average weekly total earnings for full-time adult employees
  • and average weekly total earnings for all employees

Likely to give a decent indication to what wages are doing - the RBA will take note.