Forex news for Asia trading Tuesday 29 September 2015

China

  • China capital outflow-SAFE limits yuan cash withdrawals at overseas ATMs
  • Yuan reference rate for today set by the PBOC at 6.3660
  • CASS report says China Q3 may grow about 6.9%
  • Japan researchers say China GDP may have slowed to 5% in Q2

Federal Reserve's Willaims speech, Q&A:

  • More Fed Williams: October is a 'live' meeting, more data could convince me to hike
  • More from Fed's Williams: Economy can handle start of rate hike process
  • Here is how the SF Fed head Williams sees inflation getting back to 2% goal 2 years
  • Fed's Williams: Still sees rates lift off appropriate this year
  • Which is better? A 'slow burn crisis' or a crash?
  • Glencore x3. Lower in HK, analysts disagree on value, trouble spreads to Australia.
  • World's biggest agricultural trading house to dump its hedge funds
  • Bloomberg: 15-month commodities free-fall is starting to resemble a full-blown crisis
  • Wakatabe: Sales tax hike the main reason Abenomics faltering, not yet defeated deflation
  • ANZ Australian weekly consumer sentiment: 110.6 (prior 114.5)
  • Australian press: Prime Minister Malcolm Turnbull convenes mini-summit on economy
  • Trade ideas thread for Tuesday 29 September 2015

It was a continuation day in Asia today, with further stock market weakness after the falls overnight, EUR and yen strength on risk aversion, and AUD and NZD weakness also. Yen outperformed the euro, with EUR/JPY slightly lower, but noth gained today against the USD.

AUD and NZD were big losers, slipping further. News the Reserve Bank of New Zealand bought 81m NZD in August was dismissed, and rightly so, thats a drop in the FX volume bucket and is not 'intervention, despite some of the breathless commentary that may be around.

Regional cash equity markets were down heavily, with the word 'bloodbath' featuring quite a few times across various media channels:

  • Nikkei -3.5%
  • HK -3.5%
  • ASX -2.9%
  • Shanghai -1.8%

The Nikkei has now lost all of its gains made in 2015 (and of course its not alone).

Oil is more or less flat on the session, as is gold.

Still to come:

  • Coming up soon - RBI expected to cut rates again
  • Horror movie due for release at midnight Tuesday (ET) ... and its market relevant!