Forex news for Asia trading Monday 1 June 2015

  • ANZ: Risks of a downside break for the AUD are accumulating
  • Barclays expects RBA easing bias has been boosted by capex
  • AEP on EUR & Greece: Defiant Tsipras threatens to detonate European crisis
  • China - HSBC/Markit Manufacturing PMI for May: 49.2 (expected 49.2)
  • Japan -Markit/JMMA Manufacturing PMI for May (final): 50.9 (flash was 50.9)
  • Australia - Building approvals for April: -4.4% m/m (expected -1.5%)
  • Australia company operating profits and inventories data for Q1
  • China manufacturing PMI: 50.2 (vs. 50.3 expected) & Non manufacturing PMI: 53.2 (prior 53.4)
  • More from Austn Treasury Secretary Fraser: Sees unequivocal proof of Sydney housing bubble
  • Australia - TD Securities/Melbourne Institute (MI) Inflation Gauge: +0.3% m/m(prior +0.3%)
  • USD gaining in the early going in Asia ... EUR the biggest loser
  • CoreLogic RP RPData house price index for May: -0.9% (prior was +0.8% m/m)
  • Japan data - capital spending, company profits and sales for Q1
  • Australia - AIG Performance of Manufacturing index for May: 52.3 (prior 48.0)
  • Australian Treasury Secretary: Forecasts point to significant economic headwinds
  • Old traders comment on 'the kids of today'
  • IMF mission on Ukraine, sees signs of "economic stability" emerging
  • Moody's: Falling capex in Australia is a signal of growth challenges
  • German finmin takes candy from child (says its for Greece)
  • Greek talks continued over the weekend (Guess what? No resolution)
  • OPEC oil output in May reaches highest since 2012 - Reuters survey
  • OPEC likely output target unchanged - oil market in good shape, prices expected to firm
  • Monday morning - Forex prices, early indications

Weekend:

  • EU anger as Russia bans 89 politicians and military personnel
  • German business groups call for Russia to be included back into G7
  • China Securities Journal quotes state official: Economy could stabilize in H2 this year
  • French Economy Minister Macron: Sees possible change to European Union treaties in time
  • UK's Industry Confederation - Private sector shows strongest economic growth for a year
  • SNB's Jordan - Swiss National Bank will intervene if required
  • ECB's Constancio says QE is working according to plan
  • Greece could push back parts of its anti-austerity programme to seal a deal this week
  • Preview of the 3 central bank policy decisions next week: no change, no change, no change
  • "Saudis' Drive To Kill U.S. Shale Has Backfired". But has it?

It was a slower than normal start this morning with New Zealand markets closed for a holiday.

It didn't stop an early run lower on the NZD/USD, though, with stops triggered taking it down to below 0.7075 before a bounce.

And, movements then continued on through the session. Notably in EUR/USD, which came under pressure from early Sydney time, the losses gathering pace through the Tokyo morning before finally finding some support and a bounce from just ahead of 1.0930. Its difficult to pinpoint a specific catalyst, but more Greek unresolved negotiations over the weekend seem a reasonable culprit. Greek PM Tsipras had a provocative piece published in French newspaper Le Monde (link here, and more here - FT, gated)

The CHF, too, lost ground against the USD (there were CHF negative weekend comments from SNB head honcho Jordan, here). Cable was a little more resilient, as I update it has recovered its small dip to be near session highs (CBI data over the weekend should be supportive for GBP.

AUD had a blip lower on weaker than expected building permits, but it was little more than momentary. Whichever way you cut it, +16% odd y/y is not a bad result. NZD/USD, too recovered all its early losses to be near session highs as I update.

Gold had a run higher in the early going (as the USD weakened), but quickly gave it all back to be only slightly above opening levels for the day.