Forex news for Asia trading Thursday 25 May 2017
- EUR, AUD not the only gainers ... check out the yuan
- Here's what drives bears crazy (at least it did this one). (Spoiler - donuts)
- Fitch on China: A+ rating underpinned
- EUR/USD on its session high, AUD up too
- NZ Budget: Govmt expects a bigger-than-forecast budget surplus in 2017
- BOJ's Sakurai: Will guide yields to appropriate curve
- Fed's Evans: US essentially at full employment. Sees 'serious miss' on inflation
- PBOC sets USD/CNY mid-point today at 6.8695 (vs. yesterday at 6.8758)
- OPEC meeting in Vienna today ... times, events ... what to watch for
- An interesting piece of data that points to a fall in US retail sales
- Singapore Q1 final GDP: -1.3% q/q annualised, s.a. (Reuters poll -1.0%)
- Fed's Kaplan: US can't grow debt to boost GDP any more
- Reuters reports on US Navy freedom of navigation exercise near China
- Federal Reserve ... all the Ks are quiet ... nothing from Kaplan, Kashkari
- Nothing from Fed's Kaplan (at least so far)
- More on the Federal Open Market Committee minutes
- Barclays on the BoC: "neutral stance ... with a more upbeat tone"
- BoA/ML high conviction FX trades - (3 of 3) Short CHF/NOK
- BoA/ML high conviction FX trades - (2 of 3) Long EUR/GBP
- Trade ideas thread - Thursday 25 May 2017
- BoA/ML high conviction FX trades - first is NZD/JPY long
- UK PM May will cut short her attendance at G7 - citing critical threat level
- New Zealand budget preview #4
- New Zealand budget preview #3
- The four word summary of the FOMC minutes (and more if you want)
- New Zealand budget day - preview 2
- Economic data due from Asia today - and PLENTY of central bank speak
- New Zealand budget day - preview
- ICYMI: Forexlive Americas FX news wrap: Dollar lower after FOMC meeting minutes
A strong day for currencies, equities, BTC ...
During the US session we got the FOMC minutes, which raised a few more doubts on a June rate hike, and the USD weakened a little. That carried on in Asia today, with markets higher all over the place (almost).
Yen was a laggard, with USD/JPY little changed on the session. There was no particular news out of Japan. NZD, too, a laggard on the session, NZD/USD also barely changed. The New Zealand government budget was announced today, with higher surpluses forecast, tax cuts flagged (hey, there is an election coming up) and more infrastructure spending. If it was pretty much any other government you'd say "pull the other one", but from NZ, yeah they'll get it done. Anyway, the currency response was pretty much sideways.
EUR, CHF, GBP, AUD, CAD ... all gained against the USD. Moves were not large (this is Asia, after all), but we take what we can get.
The yuan was a notable stand-out today, it surged against the USD, both onshore and offshore (i.e CNY and CNH up). Yesterday Moody's downgraded China (for the first time since November of 1989). Chinese authorities are not happy, check this summary out from Reuters (to be fair, governments all over the world whine about ratings agencies under such circumstances): Moody's China downgrade 'illogical', overstates debt: People's Daily
Hourly CNH
One of China's agencies, Dagong Global Credit Rating, were on the wires today disagreeing with Moody's & questioning the timing of Moody's announcement. Even Fitch got in on the act, saying that China's robust external finances & strong macroeconomic track record underpin the sovereign rating of A+/Stable.
The yuan hit a 2-month high today, with information received citing major state-owned banks as big buyers of CNH (buying offshore yuan against the USD). Call me jaded but "take that Moody's" springs to mind ...
Bitcoin surged, as did US S&P500 emini equity futures on Globex during Asian trade; the first above $2550, the second to an all-time high.
Gold moved a little higher (above its US time high, but only just). Oil didn't do much, the OPEC & non-OPEC meeting is in Vienna today (OPEC meeting in Vienna today ... times, events ... what to watch for )
Regional equities:
- Nikkei +0.45%
- Shanghai +0.39%
- HK +0.60%
- ASX +0.10%
