Forex news for Asia trading Thursday 29 October 2015

  • Merkel: Would be pleased if IMF included yuan in currency basket
  • Moody's says supportive monetary, regulatory polices to propel China property
  • Japan's Deputy Chief Cabinet Secretary says moderate economic recovery
  • Chinese PM Li: Annual 6.53% growth in next five years is needed
  • RBNZ bought 138m NZD in September
  • PBOC official says China spillover effect was exaggerated
  • Mr. Yen likes the yen!
  • People’s Bank of China (PBOC) sets yuan reference rate at 6.3596
  • China researcher recommends 6.8% growth target for 2016
  • Australian export (flat) and import (+1.4%) price indexes for Q3
  • Japan govt. on industrial output data - fears of sharp fall now dispelled
  • Australia-HIA New Home Sales for September: -4% m/m (prior +2.3%)
  • Japan data-Industrial Production September (preliminary): +1.0% m/m (-0.6% expected)
  • Nikkei flags again potential BOJ easing tomorrow
  • Had enough Fed? Brace yourself for a barrage of Fed speakers in coming days
  • Trade ideas thread for Thursday 29 October 2015
  • Responses to the FOMC, ANZ says 'door open' for December hike

RBNZ monetary policy meeting decision

  • Poll finds most expect RBNZ to cut rates in December
  • Responses to the RBNZ ... Westpac looking for a December cut
  • Responses to the RBNZ coming in ... ASB first cab off the rank
  • Full text of the RBNZ rate decision
  • RBNZ announce NO CHANGE in cash rate

The Reserve Bank of New Zealand got the ball rolling in Asia today, and it was downhill for the NZD as the bank left rates on hold and jawboned the currency lower. A flash clear out of stops down toward 0.6620 and a bounce back nearly as quickly from there left us to drift lower from above 0.6700 to settle under 0.6675

Japanese preliminary industrial production data for September came in well better than expected and an improvement from last month. For the sake of the Japanese economy lets hope the final data confirm the preliminary, but regardless of what the future holds it was "make hay while the sun shines" for the yen ... with USD/JPY dropping from FOMC-inspired +121.20 highs, losing it down toward 120.60. Yen crosses were down (EUR/JPY off 80-odd points) as EUR/USD, USD/CHF and GBP/USD all remained in small ranges more or less sideways.

Gold eked back a small gain after being 'Fed' to the dogs in the US afternoon. Oil drifted back a few cents from its early session high.

The 'underneath the radar' moment came today from China's PM Li Keqiang, who was reported to have floated the new goal of a 6.53% GDP growth rate for China ... A 'walking down' of growth expectations has been coming out of China for years now ... this is a continuation of that process.

Let me leave you all with something that hasn't, IMO, received enough attention ... It just three little words that can make so much difference.

No, wait.

Four little words, sorry.

From the FOMC statement ... "In determining whether it will be appropriate to raise the target range at its next meeting."

The Wall Street Journal's Jon Hilsenrath picked up on them (see here). Thats a pretty clear indication of what they are thinking there at the Federal Reserve. Still, there is plenty of water to flow under the bridge until December.

Have a great weekend, all! But, not yet .... see ya tomorrow for the BOJ!

Regional equities:

  • Shanghai +0.12%
  • Nikkei -0.29%
  • HK -0.38%
  • ASX -1.42%