Forex news for Asia trading Wednesday 22 September 2015

China

  • Jim Chanos ... still hates China
  • China looking good! (says Xi), Data, markets not so much...
  • Caixin China Manufacturing PMI (Flash reading) for September: 47.0(expected 47.5)
  • People's Bank of China (PBOC) sets USD/CNY reference rate at 6.3773
  • More from China's Xi: China stockmarket has reached phase of self-recovery
  • China NDRC say 7% GDP growth is credible
  • China President Xi: China will not go back in reform process
  • Giant iron ore exporter at odds with global banks over China steel outlook

Australia & New Zealand

  • "Australian LNG Projects are in Serious Trouble"
  • New Australian PM comments on the wires
  • Australia-Conference Board Leading Index +0.3% m/m
  • Australia-Morgan Stanley expects a mini budget, lower interest rates; cites housing fall
  • UBS on the AUD: 'Too early to call the bottom', 0.69 by year end
  • FOMC - Lockhart comments
  • USD gained after Lockharts comments
  • Fed's Lockhart: Federal Reserve isn't able to measure inflation perfectly
  • Fed's Lockhart: Repeats he sees 2015 rate lift off as likely
  • BoK's Lee: exports sluggish, domestic demand recovering
  • BHP says it has seen continued growth in the global economy
  • Wall Street Journal reports on oil price: 'lower for longer', under $60 through 2016
  • Westpac: Latest OECD leading indicators-'clear slowing of industrial sector playing out'
  • For AUD traders-ANZ downgraded its iron ore and coking coal price forecasts
  • Trade ideas thread for Wednesday 23 September 2015
  • American Petroleum Institute (API) crude oil inventories -3.7 million bbls

Japan has been on holiday Monday, Tuesday and Wednesday this week and are back on Thursday (tomorrow)

We got some decent action today, beginning with Atlanta Federal Reserve head Dennis Lockhart's Q&A comments. His preceding speech was merely a repeat of his speech on Monday this week, but his Q&A was more interesting. He reiterated his expectation for a 2015 rate hike, and other such comments, which gave the USD a bid. USD/JPY popped to just above 120.30, EUR/USD fell away a little, dipping below overnight lows in Europe/UK/US but didn't manage to hit 1.1100. GBP lost a few pips, very, very tight range. USD/CHF breached 0.9760.

None of those moves were sustained though ... the trigger for retracements, and more, was another terrible manufacturing PMI report from China. Today it was the flash reading for the private-sector Caixin/Markit survey, which came in below expectations and below last month's dreadful result.

EUR/USD recovered all of its earlier loss ... but was not where the bigger moves were.

USD/JPY lost 60 points from earlier highs, and, similarly, the AUD/USD also lost around 60 points. NZD down 45-odd points also.

The bounce in USD/JPY and AUD/USD since the Chinese data has been unimpressive, but both have stabilised somewhat. AUD/USD is holding above buyers clustered around 0.7020 (there are more around the figure just below, but any rallies will attract sellers again.

Oil traded higher on the API data release in late US time, but hasn't followed through, gold has been in a subdued range.

Regional equities ...

  • Japan, closed
  • Shanghai Comp -2.1%
  • ASX -2%
  • HK -3%

Still to come:

  • Heads up for NZD traders - Fonterra payout forecast to be updated Thursday NZ time