Forex news for Asia trading Friday 28 October 2016

The final Friday of the month brought the regular mini data dump from Japan, CPI and household spending releases the highlights. If such disappointments can be thought of as highlights.

The inflation data was weak, but on the plus side maybe not as weak as expected. But, that's not saying much. The bullets, above, contain the data. Core inflation now shows deflation for 7 consecutive months, and also hit a 3-year low. Core-Core inflation (stripping out food and energy) came in flat, and missed very low expectations. You'll also find the "Overall Household Spending" data for September in the bullets above, this result was also very poor, but not as bad as the median consensus was expecting. 'Not as bad as expected' is hardly a great result, but at least its something.

The Bank of Japan meet on Monday and Tuesday next week, and you'd be excused for thinking that the poor data might prompt further action from the bank (you'd also be excused for thinking that doing more of the same is not really going to be very effective), but market expectations remain unchanged for no further easing at the meeting.

The Yen response to the data was barely a blip on the screen. USD/JPY is net down maybe 10 points on the session.

Action in other currencies was also limited, EUR & CHF are very little changed, but cable is up a few tics, 30+ points higher than session lows early on today.

AUD and NZD both have not done a huge amount, AUD/USD is net up a few points but NZD/USD has added 25 or so points from its overnight low in US time.

Gold is a few dollars in the green, and oil is slightly higher too.

The market awaits US Q3 GDP today.

Regional equities:

  • Nikkei +0.47%
  • Shanghai +0.03%
  • HK -0.44%
  • ASX +0.30%

Still to come: