ForexLive Asia FX news wrap: Oil price gets Naimi’d and shamed

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Wednesday 24 February 2016

Fischer:

China

Japan

Australia/NZ


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.

Regional equities:

  • Nikkei -1.28%
  • Shanghai -0.21%
  • HK -1.60%
  • ASX -2.27%

More:

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