Forex news for Asia trading Friday 10 July 2015

Greece

  • Here Is How To Trade Greece's End-Game In FX
  • ANZ on Greece & the proposals ... The Final Countdown
  • Daiwa: Greek proposals significantly raise probability of deal with creditors this weekend
  • EUR heading higher after Greek proposals ... EUR/JPY surging
  • Greek reform proposals include setting primary surplus target at 1% for 2015, 2% in 2016
  • Greece - Where we are at and the timeline for whats next & the weekend
  • Greek government submits new proposals

Straya & NZ

  • Australia May Home loans: -6.1% m/m (expected -3.0%)
  • Australia in 'denial' about China's iron ore 'double whammy' hit
  • New Zealand revises CPI ... Q1 CPI fell 0.3% (sa)

China

  • China Stocks - Shanghai up 5%, BoA says doesn't see sustained rally
  • China stocks - Shanghai Composite gaining early
  • China Financial News: Insurance cos buying stocks every day
  • Goldman Sachs on China shares .... "hasn't yet fully purged"
  • Securities Journal: China's economy upgrade needs a healthy capital market

More

  • Japan's Amari and Aso comments on China stocks and Greece
  • Japan PPI for June: -2.4% y/y (expected -2.2% y/y)
  • Trade ideas thread for Friday 10 July 2015

(Very) Late in the day news out of Europe that Greece had sent its proposals off to Brussels. As news of what was in the proposals hit the market took the EUR, and other 'risk' assets higher. Overnight US equity indices rallied, as did EUR/JPY, AUD and NZD (to a lesser extent). EUR/JPY was a big mover, as EUR/USD buying combined with USD/JPY buyers (USD/JPY gained 50-odd points reasonably quickly.

The moves pretty much set the tone for the session, and while there was some consolidation as the initial positive outlook waned a little (these are proposals, if the Trokia ... am I allowed to call them that? ... accept them then the negotiations begin, not end! Also, the Greek parliament is yet to vote on the proposals. Its thought they'll pass as opposition party support is likely to outweigh the nays from some of the government members .... but we've learned not to count our chickens in Greece, haven't we?)

China stock market opening was the next event on the horizon, and its been a steady-ish sort of move higher for markets there from the off. Threatening to arrest short sellers and, apparently, even plain old sellers, combined with leaving nearly half the markets stocks in suspension unable to trade has done wonders. I hope the plunge protection team is paying attention - its really not that difficult, chaps. (OK, sarcasm off now).

Australian housing finance data was weaker today, but it had little impact on the AUD with eyes on China.

Oil gained through the session. Gold had some minor swings but is close to unchanged as I update.