Forex news for Asia trading Thursday 3 November 2016

  • China NDRC says some Chinese coal companies to cut thermal coal prices
  • US Naval base in Japan on lockdown, reports of gunshots
  • AUD/USD getting smashed (I said sellers above 0.7685 ... that deescalated quickly :-D)
  • Yen strength extending, USD/JPY below 103
  • Early Asia 'wrap', USD weaker across the board
  • Coming up from the UK today - the big Brexit High Court decision
  • China - Caixin Services PMI (October): 52.4 (prior 52.0)
  • NZ finmin English says the RBNZ is managing financial stability risks well
  • PBOC sets USD/CNY mid-point today at 6.7491 (vs. yesterday at 6.7562)
  • ANZ says PBOC 'selectively' tightening policy, mop up some excess to prevent bubbles
  • Earthquake reported in central Italy: M5.2 around 64km E of Perugia
  • Australia - Trade balance for September: Deficit of 1227m (expected -1700m)
  • New Zealand - ANZ Commodity Price index for October: +0.7% m/m (prior +5.1%)
  • CBA on the New Zealand dollar, how it can get above 0.74
  • ANZ on the FOMC: Clearly signalled fed funds target could rise in December
  • PIMCO on the FOMC decision - "December hike still likely"
  • Australian October Services PMI: 50.5 (prior 48.9)
  • Japan press: BOJ "likely to avoid upsetting markets", take long view on inflation
  • City passporting rights deal "unachievable" in Brexit negotiations (EU financial lawyer)
  • So then, S&P like Canada as well as Moody's does - triple A confirmed
  • Trade ideas thread - Thursday 3 November 2016
  • Moody's affirms Canada rating, keeps Outlook stable

Despite the holiday in Japan USD/JPY was a big mover today in Asia, from an early high just above 103.40 it lost ground through to around 102.60.

Fox News carried a report that FBI Sources Believe Clinton Foundation Case Moving Towards "Likely an Indictment" which helped the yen bid. Gold, too, had a good rally, up through 1300 and above 1306 briefly.

There was broad USD weakness pretty much across the board, EUR, CHF and GBP all benefitting against the weaker USD, as did the NZD (to a one-month high today)

AUD/USD was stronger early also, up briefly to above 0.7680.

As USD/JPY dropped, though, AUD/JPY lost ground, and once uncer 79 it hit the skids as stops loss sellers were triggered. I posted an AUD/JPY chart earlier along these lines, but to update:

As the AUD was hit it dropped against other crosses too. AUD/USD lost all of its session gain and then set a new session low as AUD/JPY dropped; its since recovered somewhat to be net very little changed on the session.

Other yen crosses were lower also, EUR/JPY down to test toward 114.

Regional equities:

  • Shanghai +0.57%
  • HK -0.12%
  • ASX -0.23%

Still to come:

  • Coming up from the UK today - the big Brexit High Court decision