Forex news for Asia trading Tuesday 27 September 2016

  • Did Fibonacci win the US election presidential debate? (Here's proof!)
  • Just a reminder - next US president debate is October 9, then final one on October 19
  • Poll time! Who won the debate? Trump or Clinton?
  • Japan finance minister Aso: Want to pass budget to clearly escape deflation
  • MXN extending its gains
  • Industrial profit growth in China to the highest level since September 2013
  • USD/JPY to session high
  • China August industrial profits +19.5% y/y (prior +11.0%)
  • People’s Bank of China sets yuan reference rate at 6.6646 (vs. yesterday at 6.6744)
  • Trump / Clinton debate - your comments welcome!
  • Clinton / Trump US election debate - live link
  • OIL - Iran Now Has the Edge in the Fight Over Oil Prices With Saudi Arabia
  • Not fussed about the US election debate? Here's something MUCH more interesting
  • USD/JPY back up again (please refrain from blinking)
  • Yen crosses on the slide
  • More from Poloz: Will take 3 to 5 years for CAD economy to recover from lower oil prices
  • BOJ Minutes for July out now (also, Japan Service PPI for August +0.2% y/y)
  • Australia data - weekly consumer sentiment at 120.6 (from 115.5 last week)
  • BoC's Poloz: Domestic inflation to be less driven by domestic forces
  • China economy showing signs of strength say early indicators for September
  • US President election debate - the currencies to watch
  • US President election debate - advice & ideas thread
  • NAB still like the Australian dollar - forecasts
  • More on remarks from the Fed's Kashkari (no September rate hike was right move)
  • BoA fined $15.5 million for causing 'mini-flash crashes'
  • Trade ideas thread - Tuesday 27 September 2016
  • Fed's Kashkari: It was the right move to hold rates in September
  • Irish central bank gov. says Brexit could see some business shift to Ireland

Some sharp moves on currencies today.

USD/JPY dropped as stock exchanges opened in Japan, from just under 100.40 down toward 100.10. The USD/JPY drop saw drops to in yen crosses and some follow through selling hit EUR, CHF, GBP, AUD and NZD. AUD/USD, for example, slid from above 0.7630 down toward 0.7610.

The USD/JPY reversed quickly, though, getting back to around 100.40. Other currencies were slower to regain their lost ground. EUR and CHF are barely changed on the session as I update. USD/CAD hit a 6 month high during all this.

BUT, AUD/USD has surged, its has gained to a fresh session high, and above its NY high - its just over 0.7660 as I update. NZD/USD, too, is on the better performing side of the ledger. We got strong industrial profit data out of China today, which along with better private economic surveys out of China for September (see bullets above), may well be indicating the stimulus efforts out of China are reaping dividends (for now, at least ... cue doom-in-the-future music - any Zombie movie soundtrack should provide this :- D ).

OK, enough with the preamble.

The main event in the timezone today was the US Presidential debate. Most analysts seem to agree that Clinton 'won', though partisan loyalties will play a part in many of these judgements,

Markets, rightly or wrongly, were focused on the behaviour of the Mexican peso as an arbiter of the debate. The feeling went that if the peso fell it showed Trump winning the debate, and if the peso rallied, Clinton the winner. Whether you agree or disagree that this is a fair way to judge who won is a reasonable point, but this is how the USD/MXN moved (lower is MXN strengthening):

USD/JPY was also a good gainer through the debate, shrugging off that early wobble and approaching 100.90 as I update. The Nikkei had a positive session (so far).

Still to come in the debate series is debate 2 on October 9 and debate 3 on October 19 (more details in the bullets, above).

Regional equities:

  • Nikkei +0.28%
  • Shanghai -0.15%
  • HK +1.10%
  • ASX -0.43%

And, a bonus ... for the "You had ONE JOB!" file: