Forex news for Asia trading Tuesday 19 May 2015

Australia, RBA:

  • RBA May meeting Minutes - bank responses
  • AUD/USD ... HSBC reckon the RBA is fighting a covert currency war
  • AUD falls on the release of the RBA's May meeting Minutes
  • RBA May meeting Minutes: Lower AUD both likely and necessary to help rebalance economy
  • Australia - Conference Board Leading Index for March: -0.1% m/m (prior +0.5%)
  • Australia data - ANZ Roy Morgan weekly Consumer Sentiment: 114.6 (prior 110.6)

New Zealand:

  • New Zealand - Q1 2 year inflation expectations: 1.85% (vs. +1.8% prior) (the 1-yr to 1.32% from 1.11%)
  • NZ data - Q1 PPI Output -0.9% q/q & Input -1.1% q/q
  • NZ data - ANZ Job advertisements for April: -0.2% m/m (prior was -0.7%)

Japan:

  • Japan finance minister Aso: Japan made progress, need more
  • Bank of Japan's Iwata: BOJ easing having intended effects
  • Reuters poll - Majority of analysts expect further BOJ stimulus in October
  • BOJ Deputy Governor Kikuo Iwata will stand by to testify from 0145 GMT

Greece:

  • More comments from Greek finmin Varoufakis, and a recap
  • Timeline for what's coming up - dates of importance for Greece (Burglars please note)
  • More from Greek finmin Varoufakis - Greece will not default
  • Greek finmin Varoufakis: Greece is 'very close' to deal with creditors

More:

  • China releases guidelines for economic reform priorities in 2015
  • Goldman Sachs - outlook for oil - lower their forecasts
  • Goldman Sachs technical analysis says EUR/USD looking constructive: oscillators, Elliot Wave

EUR/USD drifted a little higher after the NY close, but from 1.1320 it met reasonable offers and spent the rest of the session dribbling lower, down towards 1.1285 before settling around 1.1300 again. There were a few headline comments from the Greek finance minister Varoufakis, but nothing out of the ordinary and EUR response was barely noticeable.

Cable followed a similar pattern, topping early just above 1.5660, down to below 1.5635 and settling around 1.5650. Again, nothing in the way of significant news to note.

EUR/JPY was net weaker, USD/JPY is more or less unchanged since I started this morning, after dipping as low as around 119.86 and a high of 120.04 or so.

Gold was a little heavy, down around $6 before a bounce.

AUD and NZD ... again the star attractions during the Asian session here.

NZD was the early mover, dropping hard on the PPI data (see bullets, above) which indicated again the lack of pressure on inflation.

AUD was next, dropping in the seconds leading up to the release of the RBA Minutes as it still seems the RBA problem with early leaks of significant data points is still an issue. If anyone from the RBA wants to give me a call I can give you my view on what's going on. Or not. Whatever works. Once the official release time hit the AUD was then marked lower, before finding support ahead of 0.7950/55 bids and stabilizing.

Attention then shifted back to the kiwi and the usually sedate release of the 2-year inflation expectations report. Sedate? Not this time. A barely noticeable improvement (from 1.8% to 1.85%) saw a huge move for the NZD, with NZD/USD jumping about 60 points to around 0.7420, tipping just above 0.7430 before it has settled around 25 (as of writing).