Forex news for Asia trading Wednesday 22 November 2017
- Japan PM Abe: Expects Bank of Japan to keep striving to hit inflation target
- HSBC on the RBA's Lowe: Not especially hawkish but ... lack of overt dovishness
- If there are fresh German elections they might not be until March next year
- RBC on the RBA next year - risk of a move in Q4 2018
- FOMC minutes due Wednesday US time - preview
- Full video of N. Korean soldier's defection to South Korea
- BOJ gives early sign of lift-off with warnings on the costs of easing
- FOMC minutes due Wednesday US time - real quick preview
- US Senator's renewed support for repealing health mandate ... implications for tax bill
- More on "Yellen Says She’s Uncertain Weak Inflation Is Transitory"
- GBP/USD: Trading the UK Budget: ING eyes upside into 1.34
- Australia Q3 Construction work - responses coming in #2
- FOMC minutes due Wednesday US time - preview
- FOMC November meeting minutes due Wednesday US time - preview
- UN Command says North Korean troops violated the Korean Armistice Agreement
- Australia Q3 Construction work - responses coming in
- Japan PM Abe: Society demands that companies raise wages
- Another Australian senator quits (dual citizen)
- More minutes coming up! The FOMC's on Wednesday
- PBOC sets USD/CNY mid-point today at 6.6290 (vs. yesterday at 6.6356)
- AUD/USD dribbling lower after construction data pop 'n' drop
- PBOC Zhou says should make markets play decisive role in financial resource allocation
- FX options for Wednesday expiry
- Australia Q3 Construction work done: +15.7% q/q (vs. expected -2.3%)
- Fed Chair Yellen spoke earlier - recaps
- Australia construction data for Q3 due at the bottom of the hour - previews
- Barclays on the UK budget - asymmetric risk for GBP (skewed to downside)
- Yellen Q&A now: Fed is not certain low inflation is transitory
- Westpac on the RBA (early preview of the December meeting)
- US politics: Mueller Probes Kushner’s Contact With Foreign Leaders
- Australia - Westpac leading index for October: +0.13% m/m (prior +0.08%)
- Yellen says inflation below target, unemployment at or below goal
- USTR Lighthizer says remains concerned about lack of NAFTA headway
- RBNZ comments on crytocurrencies
- NAFTA negotiators say progress made
- Fed Chair Yellen speaking - Fed must keep an open mind, respond to data
- Federal Reserve's Yellen speaking - live link
- More on the Japan supplementary budget (up to 2.3 tln yen according to reports)
- PBOC Gov. Zhou calls for preventing systemic financial risks
- ICYMI: Japanese government may cut CPI, GDP estimates in January
- Australian data due today - construction work done - preview
- Uber paid hackers $100,000 to delete stolen data and keep quiet
- US official says NAFTA deal still possible by March (& no currency text proposed yet)
- Japan press report government considering extra budget of >2tln yen
- Forexlive Americas FX news wrap: Record stock close. S&P touches 2600 for first time
- Trade ideas thread - Wednesday 22 November 2017
- OIL - private inventory data shows bigger than expected draw in headline stocks
- Financial Times reports EU and UK aim to strike Brexit divorce deal within 3 weeks
- Economic data due from Asia today - special guest Janet Yellen (and some BOJ too)
A few wiggles around the FX space.
USD/JPY slid a little during the Tokyo morning, losing 25 or so points and weighing on yen crosses. As I update its hitting session lows below 112.20 and below its US time low on Tuesday.
Reuters carried a report earlier on regarding 'early signs' from the Bank of Japan of reducing policy accommodation. It was a mild report only, there is certainly nothing imminent. In geopolitical news, North Korea featured, with comments from the UN Command on site in South Korea re a North Korean soldier crossing the military demarcation line (MDL), a violation of the armistice agreement that has paused the Korean War since 1953. The soldier crossed last week in pursuit of a defector.
- "The key findings of the special investigation team are that the KPA violated the Armistice Agreement by one, firing weapons across the MDL, and two, by actually crossing the MDL temporarily," U.S. Army Col. Chad Carroll, UNC's public affairs chief, said at a briefing. (via Yonhap, South Korean media)
Also, news on the next supplementary budget and the Cabinet perhaps to cut CPI and GDP forecasts in December (see bullets above).
Having said all this, moves the yen have not been large.
EUR/USD is little net changed on the session, as is USD/CHF. There has been no fresh news nor data to shift either. Cable is up a few points (20-odd) on the session, again without much in the way to provide fresh impetus - it looks like Brexit talks will be moving to phase 2 in December (see bullet above) .
Australian data was a huge headline blowout on Construction Work Done for Q3, but as explained multiple times both before during and after the release, the impact on Q3 GDP is negligible. Nevertheless, AUD/USD popped (albeit just a few points), to a fresh high compared with its overnight top. It quickly gave it back and is barely off it session low as I post. NZD/USD moved higher alongside the AUD and has given back ground also to be barely changed on the session (down a touch).
Oil has been a mover here in Asia. It spurted higher a bit on the regular Tuesday afternoon private inventory data out of the US and never looked back.
On the US - Janet Yellen spoke (see bullets above) and there also appeared to be some potential movement on tax (see bulletsabove)
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There is plenty still to come, I popped up some previews earlier:
- Barclays on the UK budget - asymmetric risk for GBP (skewed to downside)
- GBP/USD: Trading the UK Budget: ING eyes upside into 1.34
And ... Federal Open Market Committee:
