Forex news for Asia trading Tuesday 24 August 2015

China

  • Caixin: CSRC scraps its focus on rescuing stock market
  • FT ... the panic outside China has subsided
  • Conference Board Leading Economic Index for China +0.9% in July (prior +0.6%)
  • Shanghai Composite chart - another gap lower. 3 year chart shows rise and fall
  • Lets get this show on the road. PBOC sets yuan reference rate at 6.3987
  • China Economic Information Daily: Stock turbulence cause of sentiment, not eco probs
  • Xinhua: China reviewing loan to deposit cap ratio
  • China Securities Journal: Monday stock rout caused by economic pressure
  • More on that PBOC RRR cut story
  • NZ data - 2 year inflation expectations: 1.94% q/q (prior 1.85%)
  • Indian Central bank head on stocks collapse - Deal with it, stop crying for support
  • Australian PM Abbott: Stock market difficulties are associated with China bubble
  • NZ finmin English: NZ economy well placed to handle market volatility
  • Fitch comments on New Zealand - macro-prudential tools a positive
  • Japan - Nikkei putting in a decent bounce
  • Japan chief cabinet secretary Suga: Yen levels within expectations
  • Japan economy minister Amari: China stocks were a bubble, adjustment expected
  • Japan finance minister Aso: Hopes Chinese authorities take appropriate action
  • Australia - Conference Board Leading index (June) -0.2% (prior +0.2%)
  • Australia - ANZ Roy Morgan weekly Consumer Confidence: 113.0 (vs. prior 113.2)
  • Japan government official says recent FX moves appear to be rapid
  • Australian Treasurer Hockey: No threat of global financial crisis
  • Goldman Sachs have "Three Takeaways from the Global Market Selloff"
  • Barclays Pushes Its Fed Liftoff Call To March 2016
  • Fed's Lockhart Q&A: Says Federal Reserve will be data dependent
  • Trade ideas thread for Tuesday 25 August 2015
  • Fisher (ex-Dallas Fed): Markets today were quite orderly
  • Canada - BoC's Poloz and PM Harper confirms discussion on market moves

It was D-Day in Asia today. Decouple Day, that is.

Chinese equity indexes opened A LOT lower today, but after an initial wobble regional equity markets started to climb. Currency moves started to reverse as well, some more than others. USD/JPY was on a tear, climbing strongly to record a gain of 150+ points from late NY levels.

EUR and CHF, too, lost ground with EUR/USD down more than 100 points, and USD/CHF up 75 odd at one stage.

AUD/USD gained 100 points from its lows, NZD too. USD/CAD wasn't to be the odd one out, but CAD's gain was not as strong. Oil (WTI) gained nearly a dollar.

The PBOC set the yuan reference rate a little weaker (for the yuan) again today. So far hints of a rate or RRR cut have been absent, so today's devaluation of the CNY, although small, may be indicative of more to come still.

As I update, regional equities:

  • Shanghai Composite -4.3%
  • Shenzen -5.9%
  • ChiNext -6.5%
  • Japan's Topix +0.6%
  • HK +1.3%
  • The Taiex +2.3%
  • Kospi +1.4%
  • ASX/S&P200 +2.1%

Gold had a $5 oir so range and is little net changed on the session.