Forex news for Asia trading Wednesday 30 August 2017
- Australian data today - more analyst responses
- Australian data today - analyst responses
- US second estimate for Q2 GDP data due Wednesday - preview
- Inflation data due from Germany today - preview
- AUD up, NZD down
- RBNZ's Wheeler comments on policy, inflation expectations ... and NZD
- Australia data - Building Approvals (July): -1.7% m/m (expected -5.0%)
- Australia data - Construction Work done (Q2): 9.3% (expected 1.0%)
- Moody's China GDP forecasts revised higher
- PBOC sets USD/CNY central rate at 6.6102(vs. yesterday at 6.6293)
- BOJ JGB operation today
- US comments on North Korea, China comments on US, UN splits the difference
- More Japan data still to come - Thursday brings factory output
- Goldman Sachs to break with precedent, discuss trading strategy
- Japan - Retail sales data for July: 1.1%m/m (expected 0.3%) & 1.9%y/y (expected 1.0)
- UBS on China shadow banking risks
- Credit Agricole with a good question: What is Draghi's EUR pain threshold?
- UK data: BRC Shop Price Index for August -0.3% y/y (prior -0.4%)
- New Zealand - Building consents (permits) for July: -0.7% m/m (prior -1.0%)
- Harvey impacts continue - here are two more refineries now going offline
- More the KCNA statements on further North Korea missile tests to come
- North Korean state media warn of more missile 'drills'; to 'contain Guam'
- Goldman Sachs (GSAM) says biggest pain trade has been USD, but now very, very attractive
- Australian data releases today likely to impact FX - previews
- Trade ideas thread - Wednesday 30 August 2017
- US official says the country has no plans to call for UN oil embargo on North Korea
- Oil - private inventory survey results out (headline crude draw). Of relevance?
- Citi analysts on Harvey - GDP, inflation, debt ceiling impacts
A much more subdued affair in Asia today compared with Tuesday's rocket-propelled session. Nevertheless, some activity.
USD/JPY spent the very early hours dripping back under 109.60 from its late US high, only to begin a steady, albeit not large, march back up again as Tokyo got active. It traded back toward circa 109.90, not troubling 110 yet. We had some data from Japan today, retail sales for July beating expectations and have more coming tomorrow (industrial output):
- Japan - Retail sales data for July: 1.1%m/m (expected 0.3%) & 1.9%y/y (expected 1.0)
- More Japan data still to come - Thursday brings factory output
Australian data was next up, with building approvals coming in down on the month but not nearly as bad as expected. Q2 construction work data, on the other hand, showed a huge beat on the quarter, quite the surge (largely related to LNG facility construction):
- Australia data - Building Approvals (July): -1.7% m/m (expected -5.0%)
- Australia data - Construction Work done (Q2): 9.3% (expected 1.0%)
- Australian data today - analyst responses
- Australian data today - more analyst responses
At the same time as the Australian data was hitting we had a speech reported from Reserve Bank of New Zealand Governor Wheeler, in which he mentioned the need for a lower NZD. I'll come back to this.
The Australian dollar moved higher after the data releases, not rapidly but steadily over the course of the following hour or so to gain 30-odd points, halting its advance ahead of 0.8000.
Meanwhile, with Wheeler giving the kiwi a bit of nudge to fall, the NZD dropped from above 0.7260 to around 0.7230 very quickly and then bouncing back to be higher on the session as I post this.
Elsewhere ranges were smaller, EUR, CHF and GBP were not where much of the activity was today. Cable has managed to tick to its session high as I update, as has EUR/USD. USD/CAD has slipped to a new session low also, but a small range here also.
Gold is up a few dollars having tested toward 1305. Oil inventory data from the US in late NY time was pretty much ignored. Harvey continues to cause damage, retouching land and impacting refineries further:
Harvey impacts continue - here are two more refineries now going offline
Regional equities:
- Nikkei +0.59%
- Shanghai -0.03%
- HK +0.75%
- ASX -0.21%
Still to come:
