Forex news for Asia trading Tuesday 28 July 2015


  • China State Planner says to quicken construction of key projects in H2
  • China government funds stepping in to buy stocks
  • China stocks pounded lower on the opening
  • PBOC inject funds - largest since March 15
  • China stocks open at the bottom of the hour - here's what it'll look like
  • PBOC: Reiterates to pursue prudent monetary policy in H2
  • China stock market - "Very wild rumours"
  • Large parts of mkt closed, stocks still trading are selling regardless of support measures
  • How China's stock market manipulations differ from that in the West
  • Lock-up shares (around 90.6 bn yuan) eligible for trade on China's market this week
  • EUR/USD to fall because of FOMC "quantitative tightening" (yeah, not QE ... think QT)
  • South Korea declares end of MERS outbreak: Yonhap
  • Australia - ANZ Roy Morgan weekly Consumer Sentiment 112.5 (prior 111.8. )
  • Don't expect another cut in interest rates from the Reserve Bank of Australia
  • Everyone and their dog are short AUD/USD but bottom might be near, what do you think?
  • Trade ideas thread for Tuesday 28 July 2015

Eyes were on China today after the huge stock market falls yesterday afternoon. The Shanghai Composite opened around 4% lower, extended its falls a little and then bounced into the positive on the back of government-led buying. The PBOC played ball, injecting money market funds (largest since March 5). As I update, though (China stock markets now closed for the lunch break), the Shanghai Composite is a little negative on the session so far.

As at the close of the morning session (afternoon yet to come):

  • Shanghai Comp -0.8%
  • Shenzhen Comp -1.3%
  • ChiNext -2.2%
  • And in Hong Kong .... the Hang Seng +1.7% (One country, two systems, right?)

The Chinese stock markets almost had the AUD/USD on a string, with a plunge (OK, 'plunge' is probably a bit extreme ... but it was a sharp fall from around 0.7285) to lows under the overnight lows, but running into buyers around 0.7260 that held. As Chinese equities ticked back to retrace earlier losses the AUD jumped (that's probably not an extreme description), with a short market scrambling to cover as we traded above 0.7300 before settling just below there as of updating.

NZD was active also, not falling like the AUD and putting on a near 50-point gain from early lows around 0.6600. Early session AUD/NZD selling has been retraced somewhat but its net lower on the day.

GBP, CHF and even EUR were all subdued; EUR/USD is a little lower (not a lot in it) while cable and USD/CHF are barely changed.

USD/JPY lost a few points in the earlier part of the Tokyo session but gained 40 or so points from the early circa-123.10 low. AUD/JPY played a part, and EUR/JPY up around 30 or so points also.

Oil is little changed after an early move a little lower. Gold, too, little changed, up a couple of dollars of its low.