Forex news for Asia trading Wednesday 3 February 2016

China:

  • China Electric Council says electricity usage expected to grow around 1 to 2% this year
  • On the PBOC cut in down payment requirement for mortgage loans
  • China's 'fallen angels' - $23 Billion in debt that could be cut to junk
  • Chinese government warns bank execs: Control risks, restrict capital outflow ... or else
  • China Caixin January PMIs: Services 52.4 (prior 50.2), Composite 50.1 (49.4)
  • China Pre-market indications show the Shanghai Composite to open down 1.1%
  • PBOC sets USD/CNY mid-point today at 6.5521
  • PBOC to inject 100bn yuan through OMOs today

Japan:

  • Japan issues order to destroy any North Korean rocket that threatens
  • More BOJ Kuroda: Markets somewhat overreacting to fears of China's slowdown
  • BOJ's Kuroda: Negative rate policy doesn't show we've reached JGB buying limit
  • Japan Nikkei January PMIs: Services 52.4 (prior 51.5), Composite 52.6 (52.2)
  • BOJ December meeting minutes: Link to full text
  • Bank of Japan Governor Kuroda is in your algo machines, messin' dem all up
  • Australian press: Short-selling Australian banks on the rise
  • RBS EUR/USD Chart: "awaiting confirming signals"
  • JPMorgan pushes out its forecast for the next RBNZ rate cut
  • Australian December Building Permits: 9.2% m/m (vs. 4.5% expected)
  • Australian data: December trade balance: -3535m (expected -2450m)
  • UK data - BRC Shop Price Index -1.8% y/y (prior -2.0%)
  • RBNZ's Wheeler: May ease further if global outlook worsens
  • Australian Services PMI for January 48.4 (prior 46.3)
  • More goings on in the NZ employment data ... 68.4% participation rate
  • NZ data - Unemployment rate (Q4): 5.3% (vs. expected 6.1%)
  • American Petroleum Institute (API) crude oil inventories up 3.8 million bbls
  • Trade ideas thread for Wednesday 3 February 2016

API oil inventory data and then New Zealand Q4 employment kicked off the day, with the oil price falling on another big inventory build and the NZD popping on better employment data. Reserve Bank of New Zealand Governor Wheeler spoke, indicating its going to take more than the lowe inflation number for him to ease again.

The Bank of Japan released the December meeting minutes to little interst. The January Minutes will be much more interesting.

Australian data followed, the trade balance showing a huge deficit blow out as mining exports shrunk dramatically. Building approvals were out at the same time, and these showed a m/m bounce (they are a volatile data set). The Australian dollar lost ground on the data, quickly marked down 30 or so points.

Chinese stock markets opened lower, along with other regional exhanges.

Durng all this the USD/JPY was dropping away. down around 60-odd points. It had a bit of a bounce when head cheerleader Kuroda gave a speech, with a decent 30 or so point bounce. it wasn;t sustained, USD/JPY dipped to a slight new session lows but has since bounced again and is above 119.60 as I update.

EUR/USD ticked a little higher before being turned down from around 1.0935. Although 'risk off' has favoured EUR/USD its finding the mid 1.09s sticky.

Cable was more or less sideways, USD/CHF marginally softer.

Through it all the NZD/USD has remained fairly soid, and it knocking on session highs as I update.

Gold is little changed, down a little.

Regional equities:

  • Nikkei -2.92%
  • Shanghai -1.17%
  • HK -2.49%
  • ASX -2.16%