Forex news for Asia trading Thursday 9 February 2017

Some of this appeared on the US wrap, but here is the RBNZ/NZD posts since the OCR announcement at 3pm NY time Wednesday:

  • More on the RBNZ McDermott interview
  • RBNZ's McDermott says uncomfortable with level of the NZ dollar
  • More from RBNZ's Wheeler: Cash rate likely to stay low
  • Analysts react to the RBNZ decision
  • Live stream of the RBNZ press conference
  • NZZDUSD initial move is lower after decision
  • Full text of the RBNZ statement
  • New Zealand dollar quickly lower on the OCR decision
  • RBNZ holds rates at 1.75%, as expected
  • & ...Wheeler's press conference, highlights here

And ...

  • Warning from Wheeler of a possible inflation shock in the US, much higher interest rates
  • ANZ say "European concerns on the rise" - cite rising peripheral spreads
  • RBNZ's McDermott says uncomfortable with level of the NZ dollar
  • Trump's letter to China's Xi, seeks 'constructive relationship'
  • More on the PBOC meeting with BTC exchanges - no financing, no laundering
  • Japan PM Abe to propose US-Japan cabinet level talks to Trump
  • BOJ's Nakaso comments on inflation & raising long-term rate target
  • PBOC sets USD/CNY central rate at 6.8710 (vs. yesterday at 6.8849)
  • Australia Q4 business confidence: 5 (prior 6, revised higher from 5)
  • More from RBNZ's Wheeler: Cash rate likely to stay low
  • UK data - RICS House Price Balance (January): 25% (expected 22%)
  • Australia - HIA New Home Sales (December): +0.2% m/m (prior +6.1%)
  • Japan - Machine Orders (December): +6.7% m/m (expected +3.0%, prior -5.1%)
  • China press: China shouldn’t allow yuan fluctuation just to protect FX reserves
  • PBOC held "closed-door meeting" with bitcoin exchanges on Wednesday
  • Worries over Greece are coming back - here's why
  • BlackRock CEO: US economy in slowdown, fin mkts could see a significant setback
  • Goldman Sachs hedge fund closing London operations, shifting staff
  • More on the PBOC tightening story
  • China Securities Journal: China may continue monetary tightening in 2017
  • Trade ideas thread - Thursday 9 February 2017
  • New Zealand Building Consents (permits) (Dec.): -7.2% m/m (prior -9.2%)
  • RBNZ's Wheeler says economy growing well

The Reserve Bank of New Zealand announcement at 3pm NY time Wednesday set the tone for the NZD through the Asian session, with a continued move lower for the currency following Governor Wheeler's press conference (4pm NY time), lower still after Wheeler's later appearance before committee in parliament and still lower as Assistant Governor McDermott had interview remarks reported over newswires.

NZD weakness flowed through to the AUD, though not to nearly the same extent (AUD/NZD higher on the session).

Signs of some moves toward political stability (or, at least, less instability) today with the White House announcing President Trump had made conciliatory moves towards China, writing a letter to Chinese President Xi (see bullets above). PM Abe of Japan has proposed new Cabinet-level talks with the US ahead of his visit on February 10.

The yen lost some ground against the USD, USD/JPY rising from (very) early Tokyo lows circa 111.75 to above 112.30 at one stage. Its drifted back a little as I update.

EUR/USD dripped a little lower, from just under 1.07 to around 1.0680. USD/CHF is little changed on the session spending a lot of the day ticking a tad higher from around 0.9945 to 65 and then back just a little.

Cable was slightly more active, it retested towards its US highs around 1.2540 before slipping 40-odd points to just under the figure (briefly) and is close to mid-range as I update.

Regional equities:

  • Nikkei -0.41%
  • Shanghai +0.37%
  • HK +0.39%
  • ASX -0.09%

Still to come:

  • Heads-up for AUD traders - RBA Governor Lowe to speak at 0900GMT
  • Economic data due from the US today - and two Federal Reserve speakers