Forex news for Asia trading Thursday 21 2016

  • S&P GDP forecasts China & Japan: 6.6% and 0.7% (Go on, have a guess)
  • Fitch says Australian mortgage arrears rising
  • More headlines on the 20tln yen Japan govmt stimulus
  • Morgan Stanley on what to expect from the European Central Bank today
  • China's SAFE says the pressure on capital outflows is easing
  • Australia data - Q2 business conditions rise
  • PBOC sets yuan reference rate for today at 6.6872 (vs. yesterday at 6.6946)
  • Goldman Sachs on the RBNZ - cite today's statement for more cuts coming
  • Oil - Trump considering fracking mogul Harold Hamm as energy secretary
  • The on again - off again China Minxin PMI has been suspended, again
  • Will the RBA cut in August? AUD strength and low inflation may tip the scale
  • Reuters Tankan shows subdued sentiment ... some very low readings
  • Japan govmt 20tln yen stimulus headline crossing the wires (again)
  • BNP: The market is too complacent about the Fed - hike in September.
  • German fin ministry says economy in solid shape, Brexit has increased risks
  • Responses to the RBNZ coming in - ASB looking for an August rate cut
  • USD/JPY popping higher , through 107
  • RBNZ: Likely that further policy easing will be required
  • Thursday 21 July 2016 trade ideas thread - here comes the RBNZ!
  • ECB preview: Watch for quantitative easing tweaks
  • Now even Turkey's Erdogan is paying out on ratings agencies
  • More on the comments from the BOE's Forbes in The Telegraph
  • Nasdaq leads the charge higher.
  • Forex news for Asia trading Thursday 21 2016

More data:

  • NZ Credit Card Spending for June: -0.8% m/m (prior 0.0%) & + 4.1% y/y (prior 5.9%)

The day started with yen and NZD weakness.

USD/JPY moved above 107 late in the NY afternoon, continuing its session's upmove. It got all the way to above 107.45 (briefly) before coming back a little and stabilising.

Meanwhile, the NZD was marked lower on the release of the RBNZ's economic outlook update (bolded in the bullets, above). You'll recall that this was an unscheduled update, and since it was announced as on the way last week it has kept the NZD on the soft side. The kiwi fell toward 0.6950 before steadying and is grinding out a bit of a retracement, around 0.6990 as I update.

AUD/USD dipped (just a little) with the NZD but soon returned to just under its late US level and its subsequently put on a bit of an upmove in Asia (again, just a little), up around 0.7495 as I update. We had Q2 business confidence and conditions data out today, conditions remaining strong while confidence had a dip. More in the bullets, above.

Back to USD/JPY, it found renewed support ahead of 107 after pulling back from its early surge, retested its highs (even exceeded it briefly) and has settled now around 107.15.

EUR ground out a bit of a better session, and as i update its popping higher again, 1.1040 and above. The CHF is also stronger, with USD/CHF towards 0.9840. Its ECB day in Europe today so we may be seeing some squaring up of positions, but nevertheless a good day for the EUR (relatively speaking).

Gold is little changed on the session, oil a few cents higher.

The People's Bank of China set the USD/CNY mid point lower today again.

Regional equities:

  • Nikkei +1.06%
  • Shanghai +0.69%
  • HK +0.75% (the Hang Seng registered a +20% gain from its February lows today)
  • ASX +0.61%