Forex news for Asia trading Thursday 10 September 2015

China

  • Comments from Chinese Premier Li Keqiang - China economy stabilizing
  • China to build more nuclear power stations?
  • China CPI for August +2% (expected +1.8%)
  • China Securities Journal: Survey 40% of Chinese fund mgrs. plan to buy more
  • Yuan reference rate for today set by the PBOC at 6.3772
  • China does not need massive economic stimulus says ex-PBOC advisor

New Zealand

  • More from RBNZ Wheeler
  • RBNZ's Wheeler: Would like to see core inflation higher
  • NZ house price surge ... still on. Sales +41.7% y/y, prices +10.7% y/y
  • RBNZ - more (again) analyst responses
  • RBNZ - more analyst responses
  • NZ Card Spending for August (Total): +0.1% m/m (prior +1.1%)
  • RBNZ - analyst responses
  • RBNZ Governor Wheeler press conference
  • RBNZ: Cuts rates by 25bp, as expected
  • NZ - Fonterra says evidence farmers are cutting supply

Australia

  • 7 reasons Paul Krugman is wrong. Australia not facing a recession
  • Australia Employment Change for August: +17,400 (expected +5K)
  • Australia - Consumer Inflation Expectation for September: +3.2% (prior 3.7%)
  • Australia press - Iron ore rally means AUD is undervalued, should be at 0.76

Japan

  • More from BOJ's Kuroda: Oil price falls put downward pressure on Japan inflation
  • BOJ's Kuroda: Expects price trend to accelerate ahead
  • Japan fin min Aso: Global economy is in moderate recovery but clear downside risks
  • Japan data - PPI (August) -0.6% m/m (vs. -0.4% expected)
  • Japan data - Machinery Orders for July: -3.6 % m.m (expected +3.0%)
  • ECB Executive Board members speak with finance industry in private. Again!S
  • S&P cuts Brazil credit rating to BB+ (from BBB-), outlook negative
  • API crude oil inventories: up 2.1 mln barrels

The day got started with a bang from the RBNZ when they delivered the widely expected rate cut. Along with this they cut their outlook for the NZ economy and gave the currency a kick lower via calling for further NZD depreciation. The NZD cascaded lower, more than a big figure in the minutes following the announcement. It stabilized a little and then extended its fall. Today was a huge kicking for the NZD. Broad selling, its lower on any cross you care to think about (did anything lose more than the NZD today?)

The NZD, though, wasn't where the only action was.

EUR wasn't ... but it did have an early move higher. It was a slow grind pre-Tokyo, but in the morning there we had a jump towards 1.1240 before its come pretty much back to where it all started around 1.1210.

USD/JPY continued its US-time slide, only finding some support around 120 and has put in a 50-odd point bounce since then. Weak economic data again from Japan today, and more comments from Kuroda the only news of note. The Nikkei opened weaker today and dropped a little further but has subsequently recovered for a net positive as I update (ps. the trading day there is not over yet).

Cable traded a little lower in a subdued range.

The CHF gained early but has had a decent turn around, with EUR/CHF a little net higher on the session.

We had employment numbers from Australia today. There was early talk that the unemployment rate might surprise to the topside after yesterday's revisions from the Stats bureau, but such fears proved unfounded. Employment growth was on the stronger side and the AUD found a bid. Its running into sellers again ahead of 0.7010/15 but we will get a new injection of interest once the UK market starts.

Oil ... lower. API data late in the US time showed a large inventory build (see bullets, above) and price hasn't recovered. Gold had a wiggle but is net more or less unchanged.

Still to come:

  • Preview of the Bank of England meeting from BoA/ML