Forex news for Asia trading Friday 11 September 2015

China

  • China Opens Onshore Currency Market to Foreign Central Banks
  • NDRC vice chair (more): Very hopeful that China will achieve 7% eco growth target in 2015
  • NDRC vice chair says China economy faces relatively big downward pressure
  • PBOC MPC member Huang Yiping: Yuan can still appreciate, but existing downward pressure
  • People's Bank of China sets USD/CNY reference rate at 6.3719
  • USD/CNY set coming up from the PBOC after CNH intervention yesterday
  • BoA/ML on China - still room for one to two interest rate cuts this year
  • "China's industrial slowdown may bottom out soon"

Japan

  • Latest: 2 of 35 analysts see BOJ further easing next week ... but just wait 'til October!
  • Japan economy minister Amari: Strongly expect Chinese authorities to take steps
  • Japan Q3 Business Sentiment Index improves (Big manufacturers +11 vs. -6 prior)
  • Press: Toyota asking plant workers in Japan for "unprecedented level" of overtime
  • Nikkei: MinFin proposal to sweeten next sales tax hike - partial refund for food

Australia and New Zealand

  • More detail on Goldman Sachs AUD to 67 cents in 6 months call
  • Goldman Sachs sees AUD trough at 0.67 in 6 months
  • New Zealand - Food Price Index for August: -0.5% m/m (prior was +0.6%)
  • New Zealand - BusinessNZ Manufacturing PMI for August: 55.0 (prior was 53.7)
  • Aussie politics - press reports a government reshuffle coming up
  • RBNZ's Wheeler wants to clear up a misunderstanding on monetary policy making
  • The U.S. government may shut down (again)
  • Bank of Korea left interest rates unchanged earlier today
  • Press reports that OPEC more pessimistic about the future of oil prices this year
  • Trade ideas thread for Friday 11 September 2015

Its been a volatile week in Asia but it was much more subdued here today, helped along by a Singapore public holiday today. Friday is still to come for Europe, the UK and the US, so its way too early to close the books for the week.

EUR/JPY had an early move higher, carrying on its strong rally, but ran into resistance ahead of 136.50 and has tracked more or less sideways for the past few hours. Minor moves only for EUR/USD, and not huge movement for USD/JPY either. It tracked up to just above 120.90 and has since settled in a narrow sort or range as we await fresh impetus. CHF and GBP were also in subdued ranges for the session.

AUD and NZD, at the risk of repeating myself ... not a great amount of movement, especially when viewed in the context of a busy week.

Oil gained a few cents, Gold a similar story.

As I update, a look at Asian equities:

  • Nikkei -0.1%
  • Shanghai Comp is nearly flat on the session
  • Hans Seng +1%
  • ASX -0.15%

Still to come:

  • Heads up for weekend China data - retail sales, industrial production
  • Data due from China includes the closely watched new loans and social financing