Forex news for Asia trading Friday 18 September 2015

Post FOMC:

  • What's Next For USD Post-FOMC? - Reactions From Major Banks
  • PIMCO hitting wires now ... Little indication Fed has conviction on December hike
  • PIMCO on the FOMC decision: Let's Call the Whole Thing Off?
  • Did anyone see Yellen's horoscope for today? A seriously impressive call!
  • Yellen warns those wanting a government shutdown: "that would be more than unfortunate"
  • Japan finance minister Aso: Fed decision to hold likely reflected G20 meeting opinions
  • Japan economy minister Amari comments on FOMC decision

Australia and New Zealand:

  • RBC changes interest rate forecast for Reserve Bank of Australia
  • RBA's Stevens on China GDP: Continuing to slow
  • New Zealand ANZ Consumer Confidence Index for September: +0.9% m/m (prior -3.6%) & Job Advertisements for August, -1.7% m/m
  • RBA Stevens: AUD value not seriously misaligned at this point
  • Morgan Stanley trade on AUD/NZD: long for target 1.1600
  • Q&A from RBA Stevens now: Still think US interest rates will rise this year
  • RBA's Stevens: Australian economy progressing through major adjustment
  • OK ... so now its time to talk about an October rate cut
  • RBA's Edwards: Warnings about China problems are exaggerated
  • RBA's Edwards says new PM, Treasurer must fix the budget deficit in Australia

China

  • China August property price data
  • Yuan reference rate for today set by the PBOC at 6.3607
  • Morgan Stanley comments on EUR/CHF ... finally moving with rate differentials
  • Former Japan MoF official Sakakibara: USD/JPY rate unlikely to be toward 125
  • BOJ Minutes: sluggishness in exports, production, private consumption only temporary
  • Trade ideas thread for Friday 18 September 2015

Minor market movement in Asia today following the long-awaited FOMC announcement and Janet Yellen's following press conference during the US afternoon.

EUR, CHF and GBP have all had small ranges only, with EUR/USD a few points lower from where I walked in (posting a cartoon to get the ball rolling!, check it out out: Taiwanese animation take on the Abbott vs. Turnbull Liberal party leadership change this week) while cable and USD/CHF are barely changed.

The yen was a little more active with some data and comments hitting the wires having fleeting impacts only. USD/JPY traded 20 or so points higher in the early going before a 50 point dip, so the moves were reasonable. A quick spike to just above 120.40 (it was really quick, with only a few transactions above 120.20 before it jumped back down almost as quickly to around 119.85, leaving a few sell orders unfilled and some dealers wearing 'em). It has since stabilised around 119.85/120.00.

AUD has gained a few points. I posted a view from RBC (see bullets, above) that RBA governor Glenn Stevens testimony this morning was not as downbeat as may have been expected, which didn't do the AUD any harm. The net movement, though, has been small. NZD/USD followed a similar sort of pattern and is a few points higher on the session as I update.

Oil is a few cents lower, while gold is a few dollars down. Not a lot in either today.

Asian stocks greeted the FOMC decision in a subdued fashion also. As I update:

  • Shanghai +0.46%
  • Nikkei -1.37%
  • ASX +0.82%
  • HK +0.45%

We got August China property prices out today, these continued to show a stabilization in the price of housing there (see bullets, above). The m/m data was another small gain, while the y/y measure has slowed its decline. This is what passes for a good result now.

Still to come:

  • Federal Reserve speakers coming up ... over the weekend!