Forex news for Asia trading Thursday 17 September 2015

  • Japan GPIF Q2 net selling of domestic stocks - more detail
  • Chile's President Bachelet confirms 3 dead from earthquake
  • China FX regulator says depreciation pressure on yuan has basically been released
  • A roundup of the latest comments from every Federal Reserve official
  • California tsunami alert after Chilean earthquake
  • USD/CNY reference rate for today set by the PBOC at 6.3670
  • Chatter of option related sellers above 0.7200 for AUD/USD
  • ANZ expect a rate hike from the FOMC ... but beware a government shutdown
  • Japan Trade Balance for August: Y -569.7bn (vs. expected Y -540bn)
  • Chile earthquake upgraded from 7.9 to 8.3 magnitude
  • Overnight Japan news-S&P downgrade
  • New Zealand Q2 GDP +0.4% q/q (expected +0.6%)
  • Mitsubishi UFJ says no FOMC hike this time
  • Goldman Sachs technical analysts looking for 1.1680 in AUD/NZD
  • Trade ideas thread for Thursday 17 September 2015

It was a pre-FOMC session in Asia today, which is often a lacklustre one. But today had quite a few events of market interest, although, yeah, moves were not huge.

Three Five people are confirmed dead, and more than a million have been evacuated, after a huge earthquake off the coast of Chile, with tsunami alerts now in place. Our thoughts are with those effected by this terrible natural disaster.

Markets never stop, copper is higher in the wake of the earthquake (Chile is a big producer and interruption of supply was cited as a concern; subsequent developments seem to indicate this is not a disruptive likelihood, though).

Q2 GDP was announced from New Zealand today, coming in better than Q1 but nevertheless at a q/q on miss on expectations. NZD/USD was marked 35+ points lower on the announcement, but bounced and has stabilised just a few points lower than earlier highs as I update.

AUD/USD tested above 0.7200 today, but with sellers stacked above 0.7210 (see bullets, above) it has not sustained. The release of the RBA Bulletin today had little impact.

EUR and CHF both climbed a little against the USD, but have both since retraced a little ... minor moves only, though. Cable, quiet too.

Oil and gold, both quite flat.

USD/JPY dipped on the session but is in the middle of only a small range as I update.

BOJ figures today showed net Q2 selling of Japanese stocks by the huge Government Pension Investment Fund, indicating the historic shift into stocks is likely nearing an end. Speaking of stocks, as of the China lunch break:

  • Shanghai Composite: +0.5%
  • Nikkei: +1.1%
  • ASX: +1.3%
  • HK: +0.65%

Still to come

  • Speeches from Japan finmin Aso & BOJ Governor Kuroda