Forex news for Asia trading Tuesday 23 August 2016

  • China's best bank called 'mirage' of shadow lending
  • Japan flash manufacturing PMI for August: 49.6 (prior 49.3)
  • China data - MNI Business Indicator (August): 54.3 (55.5 prior)
  • S&P say NZ financial institutions face increased risks
  • PBOC sets USD/CNY central rate at 6.6586 (vs. yesterday at 6.6652)
  • Japan press: Yen headed skyward as prospects for intervention recede
  • Caixin reports China's NDRC considering issuing more bonds
  • Goldman Sachs Elliot Wave: EUR/USD large triangle still in place - make or break levels
  • Goldman Sachs on oil price: Keeps outlook of $45 to $50 through to this time next year
  • Japan - wages data shows first y/y rise in three months,
  • Uh-oh... The Federal Reserve's Fibonacci numbers problem
  • Australia - ANZ weekly consumer sentiment: 121.8 (Prior 117.6)
  • BOJ's near doubling of its stock purchases causing worry of price distortions
  • Japan press asks: Why were smart people suckered by Abenomics?
  • RBNZ's Wheeler speech - ANZ expect rate cuts in November and February
  • Trade ideas thread - Tuesday 23 August 2016
  • US Presidential candidates Trump and Clinton - check out their 'Psychopath Scores'!
  • RBNZ's Wheeler speech - BNZ says nothing new, not so dovish
  • NZD higher after Wheeler comments
  • RBNZ's Wheeler: RBNZ remains committed to inflation goals

It was a day that never really seemed to get started. Early moves were very subdued indeed, with the only interest coming out of New Zealand, where at 2100GMT Governor Wheeler of the Reserve Bank of New Zealand delivered a speech in which he watered down further easing expectations somewhat. See the bullets (above) for more detail, but in brief Wheeler indicated that while there is more easing to come he is not going to be rushed into it.

NZD/USD popped above 0.7310 briefly (a 40-off point jump) then retraced the lot. (There was more to come from the NZD in the following hours)

The USD lost a little ground as Tokyo became more active, USD/JPY, for example, dropped toward (but not under) 100, not hitting the 99 big figure today.

The (very) small bout of USD weakness was across the board, EUR/USD to above 1.1330 and cable to above 1.3140 but follow through was pretty much non-existent.

NZD moved back to its earlier highs, as did AUD/USD. As I update the NZD is wobbling around near its highs and looks set to attempt higher, USD strength notwithstanding.

Gold has dribbled a couple of dollars lower, again not much in it and oil continued to lose a bit of ground.

Stay tuned, we've got a speech coming up at the top of the hour from Bank of Japan Governor Kuroda, you'll recall it was his weekend comments that weakened the yen first thing Monday morning so he might well try again.

Regional equities:

  • Nikkei -0.31%
  • Shanghai +0.22%
  • HK -0.36%
  • ASX +0.83%