ForexLive Asia FX news wrap: Oil price gets Naimi’d and shamed
Forex news for Asia trading Wednesday 24 February 2016
- Fed's Fischer: US inflation would have hit 2% if not for oil, US Dollar
- Fed's Fischer: Sustained tightening in conditions could affect US
- Chinese investment bank's 11 page rebuttal to Kyle Bass: "several factual errors"
- PBOC sets yuan reference rate for today at 6.5302 (And OMOs for today)
- China data - Westpac / MNI Consumer Sentiment (Feb) 111.3 (114.9 prior)
- China sends fighter jets to disputed islands in South China Sea
- PBOC's Prof. Wang - Long-term use of negative rates 'drug addiction'
- BOJ's Kuroda balance sheet at 76% of nominal GDP
- Japan Abe says he will look at slowing global economy on sales tax decision
- More from BOJ's Kuroda: Not just yen rising, USD broad weakness
- BOJ's Kuroda speaking in parliament - the usual
- Japan - January PPI Services: 0.2% y/y (expected 0.3%, prior 0.4%)
- BOJ's Kuroda at it again ... Plenty of room for further rate cuts
- Australia data: Q4 Wage Price Index 0.5% q/q (expected 0.6%)
- Analysts shift RBA rate cut call from March and June to Q3 an Q4
- Targets for EUR/USD and GBP/USD
- US rate hikes: Fed "may not be quite as dovish as the market expects"
- More on Brexit poll: "Leave falls seven points"
- Brexit poll: 25% don't give a rat's
- Trading around your lifestyle - Guest Trader
- Oil - American Petroleum Institute (API) data: Build of 7.1 million bbls
- BOC names Sylvain Leduc deputy governor
The oil price fall kicked off by statements from Saudi oil minister Ali al-Naimi during Europe/US time got another shove lower from the API inventory data release that showed a huge (and bigger than expected) build in stocks.
The lower oil prices set a 'risk off' tone, and there was little during the session to improve it.
NZ rate cuts continue to look more and more likely, at least according to market pricing, with the price around 100% for a June cut now and a 60% probability for another by the end of 2016.
In China, the yuan fell for a fourth day in a row. The People's Bank of China set the USD/CNY reference rate at its highest in nearly 3 weeks. This in the wake of data late yesterday showing capital outflows were still significant.
Also from China today, Westpac/MNI Consumer Sentiment for February slumped more than 3% and is barely above a 9 year low.
Wages data from Australia showed the slowest growth on record. AUD and NZD both fell away, as did regional stock markets.
Bank of Japan (BOJ) Governor Kuroda was in parliament again today, but was unable to halt yen gains. USD/JPY dipped under 112 again, wallowed around there for a while and is setting new session lows as I update and looking rather sick indeed. EUR/JPY oo, is on its lows, EUR/USD doing net very little today with a 25 or so point range. USD/CHF, too is little changed.
Cable dipped below 1.4000 for its lowest since 2009. it, too wallowed, and then dropped further and not showing much of a bounce as I write.
Federal Reserve Vice Chair Stanley Fischer spoke during the Asian timezone, wiht little currency impact.
- Nikkei -1.28%
- Shanghai -0.21%
- HK -1.60%
- ASX -2.27%