Forex news for Asia trading Friday 8 January 2016
China
- More on 'PBOC intervening to support yuan via state-owned banks'
- China FX regulator orders banks to limit dollar purchases this month
- China data due out over the weekend - CPI and PPI (December)
- China stock market circuit breakers gone, but plenty of restrictions remain
- PBOC intervening to support yuan via state-owned banks - Traders
- Heads to roll over China stock market turmoil? Talk CSRC chief to resign
- China - Growth Board down more than 5%
- CNY holding its mid-point setting gains ... or is it?
- The big question: Will Chinese stimulus be seen as good news or look like a panic move?
- China stockmarket opening indications - Shanghai Comp to open up 2.2%
- People’s Bank of China (PBOC) sets yuan reference rate at 6.5636
- Commerzbank tip USD/CNY set from the PBOC around 6.59
- Here is exactly when to watch for a PBOC move
- China Securities Journal says circuit breaker exacerbated stock plunge selling
- Here's why Chinese circuit breakers didn't work and were abandoned. And how to fix them.
- What's going to happen on China stock markets today? Have your say here.
- Where will the PBOC set the yuan rate today? How does the PBOC set the rate?
- BOJ's Kuroda: Hard to gauge price trend without excluding oil impact
- Japan PM Abe: Cannot say Japan has ended deflation yet
- Japan wages data (if you care)
- Bank of Japan (BOJ) Governor Kuroda to attend parliament today (from 11.53am local)
- Nomura changes its call for the next RBA rate cut
- Australia November Retail Sales: +0.4% m/m (vs. +0.4% expected)
- BOJ summary of opinions from its December meeting
- Japan economy minister Amari: Need to expand domestic demand
- Australian November Retail Sales data due at 0030GMT - what to expect
- Australia - AiG Construction PMI: 46.8 (prior 50.7)
- AUD/USD & NZD/USD orders
- Trade ideas thread for Friday 8 January 2016
While we waited for the washing machine movements in Chinese markets today there were a few items to keep us interested.
Australia kicked it off with a slip into contraction (after 4 months of expansion) for the 'construction' PMI. Retail Sales data (for November) followed, which came in on expectations but with the previous month revised higher and the details a little stronger than the headline would suggest.
From Japan today we saw the initiation of a new communications tool from the Bank of Japan. Prior to the release of the Minutes from monetary policy meetings we'll now be getting a 'Summary of Opinions' of those in attendance. Governor Kuroda himself edits the document, which covers the opinions of the 9 board members as well as the government representatives in attendance. Today was the first of these, with full Minutes to follow on February 3.
But, who am I kidding? The focus was squarely on China again.
Today the People's Bank of China announced a very marginal strengthening of the yuan at the daily USD/CNY mid-point reference rate setting. I saw quite a few misreadings of this, saying the PBOC was attempting to strengthen the yuan. No, they are not. This was the action of a central bank attempting to 'smooth' the flows somewhat, to not make it a one-way bet for speculators; and maybe, just maybe, as a boost for local stocks, hmmmmm?. It certainly does not mark a policy shift from the bank for a stronger yuan.
The opening of the Chinese equity markets was next, they opened with good gains ... only to have these evaporate and reverse to losses in the following minutes. That wasn't the end of the day, though (unlike yesterday when big losses did end the trading day there), stocks soon recovered for gains in thin, volatile, whipsaw trading.
The higher setting for the yuan had an impact across FX, with AUD, NZD and USD/JPY all jumping on the announcement (and AUD/JPY, NZD/JPY soaring). 'Risk' appetite extended to regional equities.
Cable edged higher through the session, with EUR/USD down somewhat. USD/CHF edged a little higher also. Gold gave back some of its gains while oil bounced.
Regional equities with Shanghai closed for the lunch break:
- Nikkei +0.85%
- Shanghai +2.39%
- HK +1.12%
- ASX -0.49%
