Forex news for Asia-Pacific trading on October 25, 2018:
- China said to step up support for jobs in regions affected by US trade battle
- China said to halt licences for video games
- Australian job vacancies have declined for six straight months
- Hurricane Willa makes landfall in Mexico as category 3 storm
- PBOC sets yuan midpoint at 6.9357 vs 6.9411 prior
- Japan Oct prelim Nikkei manufacturing PMI 53.1 vs 52.5 prior
- Australian September skilled vacancies -0.6% vs +0.6% prior
- Brexit: UK would have sole option to leave or stay at end of 2020 - report
- Canada foreign minister Freeland: 'Stay tuned' on Saudi arms exports
- US weekly private oil inventories +9880K vs +3522K expected
Markets:
- Shanghai Composite +1.5%
- Nikkei 225 +0.5%
- Gold up $1.40 to $1232
- AUD leads, JPY lags
The rebound in risk trades that kicked off in US trading slowly extended in Asia. That helped to keep the rebound in USD/JPY going to 112.60 from 112.45 in a grinding session. If there was a theme it was a resumption of optimism on more talk of Chinese stimulus measures.
The gains in commodity currencies and yen crosses came after Chinese stocks started moving to the upside. Initially they opened lower and the video game announcement sent Tencent 1% lower but the tide soon turned and AUD/USD rose to 0.7105 from 0.7090.
USD/CAD is down into the 'gap' from the post-data rise on Friday in something that sets up an interesting Bank of Canada decision.
US oil inventories are also due later and the private report and huge build sets up another look at $66.00 but if the late bounce to $66.52 after the data was any sign, the dip buyers are starting to wade in.
