Forex news for Asia trading Wednesday 28 June 2017

  • PBOC adviser sees no further tightening in H2 2017
  • Bloomberg: Federal Reserve officials are suddenly talking more about rising asset prices
  • AUD/USD back above 0.7600 ... check this out (ex-RBA Edwards)
  • The "four giants" are not the only central bank speakers to come today
  • China's CNPC suspends fuel sales to North Korea
  • PBOC sets USD/CNY reference rate for today at 6.8053 (vs. yesterday at 6.8292)
  • Goldman Sachs on Japan inflation: "We expect a small acceleration in core CPI"
  • FT: Top China think-tank forecasts Q2 GDP of 6.8%
  • Reuters: Japan plots delay to balancing budget without spooking markets, G20 partners
  • Here is what Yellen actually said on no financial crisis in our lifetimes
  • BoC's Poloz: Looks like rate cuts have done their job
  • China economy improves in Q2 but deleveraging poses risks - private survey
  • Buba board member Dombret in the German press - warns on 'zombie' loans
  • More from Kashkari: Nothing on the horizon to suggest another crisis is imminent
  • Fed's Kashkari: No rush to raise rates when still some slack in labor market
  • US healthcare: McConnell thinks a really good chance, but not this week
  • Trade ideas thread - Wednesday 28 June 2017
  • Heads up for Federal Reserve comments - Kashkari at the bottom of the hour
  • RBNZ's Wheeler: Outlook for NZ growth remains positive, but with uncertainties
  • OIL - Private inventory data shows surprise build in crude stocks
  • French press (Figaro): Govmt deficit expected to exceed target by 9bn euros in 2017

ICYMI (*2!)

  • ForexLive Americas FX news wrap: Euro rips higher, dollar and yen beaten up
  • US stock indices close near day lows. Blame it on _________.

The Tuesday session in Europe & US saw huge gains for EUR, CHF and GBP. There were a few laggards, though, and I don't want to embarrass the sad losers by naming names ... mmmm, OK then, I'm looking at you AUD (and hello yen & NZD too).

The Australian dollar tried to make amends in Asia today, perhaps taking a cue from rising iron ore prices overnight. An article from an ex-RBA board member John Edwards, did the rounds too: Edwards saying that that if RBA growth forecasts are right the cash rate could be 2% higher in around 2 years (see bullets above). How much impact did iron ore and Edwards have? Search me - but whatever it was (inserts 'more buyers than sellers' here ... though in the bullets above you'll find a bullish view for China growth, a bullish view for China rates in H2, & a stronger yuan mid-rate) the Australian dollar rallied back above 0.7600, stopping ahead of the European high (just above 0.7620).

NZD/USD, meanwhile, did very little. Its up 20 or so points from its circa 0.7260 low.

USD/CAD popped back above 1.3200 briefly in the early morning as oil dropped on the private inventory report (a surprise build). As Oil recovered during the Asian morning, though, so too did CAD.

USD/JPY is not much changed on the session, tracing out a 30 or so point range and down from (very) early highs around 112.35. There has been little yen-centric news of note today (this though)

EUR, CHF and GBP traded in much smaller ranges than they had overnight (Europe/US times). EUR/USD is back on its high as I update while USD/CHF is just off its lows. After the afternoon spike in cable GBP/USD is sitting just under 1.2820 as I post.

Gold gained during the Asian morning to retest its European time high around (just under) $1253.

Regional equities:

  • Nikkei -0.29%
  • Shanghai -0.14%
  • HK -0.57%
  • ASX +0.37%

Still to come:

  • The "four giants" are not the only central bank speakers to come today