Forex news for Asia trading Friday 5 January 2018
- Japan economy minister Motegi - economy doing very well
- Canada December employment report due Friday - preview
- 3 pieces of poor UK data were out overnight, so of course GBP is going up
- Reuters poll - analysts expect China's yuan to drop against USD this year
- BoA/ML have 4 reasons for a EUR/USD drop towards 1.10 before higher
- Japan finance minister Aso remarks on the sales tax hike, budget, and more
- AUD dropping a little lower following the big miss on trade
- North and South Korea set January 9 for talks
- Goldman Sachs preview the US December Nonfarm payroll data due Friday
- PBOC sets USD/CNY mid-point today at 6.4915 (vs. yesterday at 6.5043)
- FX option expiries for the 10am New York time cut on Friday 5 January 2018
- Japan Nikkei (Dec) PMIs: Services 51.1 (prior 51.2), Composite 52.2 (52.2)
- Australian Trade balance (November): AUD -628m (vs. expected AUD +550m)
- Still more UK data: UK small business confidence to a 4 year low in Q4 2017
- More UK data - UK new car sales record biggest drop since 2009
- UK data - BRC Shop Price Index for December: -0.6% y/y (prior -0.1%)
- Japan data - December monetary base +11.2% y/y (prior +13.2%)
- Chatter about of preparations for a North Korea rocket test launch
- Heads up for very large FX option expiries in coming days (EUR/USD)
- Deutsche Bank on EUR/USD - looking for higher, citing Fed hikes are already priced
- China press says economy to slow in 2018, but yuan likely to be stable
- USD/CAD: Near-term balance of risk appears to favour further CAD strength
- HSBC on the AUD (iron ore!) and NZD
- Forexlive Americas FX news wrap. Dow 25K. ADP +250K. Oil $62. USD down (again)
- Euro trying to make a statement
- Trade ideas thread - Friday 5 January 2018
- By the numbers: Non-farm payrolls preview for the Dec employment report
- Economic calendar due from Asia today - Australia trade balance
- Dow 25K is the milestone of the day.
The Australian trade report for November data is here:
- AUD dropping a little lower following the big miss on trade
- Australian Trade balance (November): AUD -628m (vs. expected AUD +550m)
A dreadful miss on expectations and the previous month's results were revised lower alongside from a surplus to a deficit. November's is the biggest deficit in over a year, and is the second deficit month in a row (after the revision for October). This will weigh on Q4 GDP (net exports look like they won't be a positive contributor)
The Australian dollar fell (all of about 20 points .... whaddya gotta do to get movement in this timezone???) from session highs circa 0.7869 to lows around 0.7845 (just a touch under).
NZD/USD dipped (marginally) with the AUD but has held a very small range on the session.
USD/JPY has edged a little higher, its approaching 112.90 as I update and on session highs. There has been little in the way of market moving data, news etc. for it (see bullets above).
EUR, CHF ... both barely changed against the dollar. GBP has edged a little to the topside though.
In China today, the People's Bank of China set (reference rate setting) the CNY at its strongest since May of 2016. The Bank skipped OMOs for the 10th day in a row, saying liquidity was good - and indeed China's interbank funding costs do continue to fall, for example Shibor was lower across the board for the 4th day in a row.
Regional stocks .... the Nikkie continued its rip higher again today, as did India's BSE Index, which hit its highest ever.
