Forex news for Asia trading Wednesday 14 October 2015

New Zealand, Australia

  • RBNZ's Wheeler: Some further easing seems likely
  • Forex technical analysis: NZDUSD falls on Wheeler comments but rebounds
  • Australia-Westpac hikes home loan interest rate
  • Westpac rate hike makes an RBA November rate cut more likely
  • Macquarie on Westpac rate hike today, Nov. RBA rate cut all but sealed
  • Australia press: 'Westpac move 'seals the deal' for RBA interest rate cut'
  • New Zealand: S&P revises Fonterra outlook to stable from negative
  • NZ government announces operating budget surplus
  • Australia-Westpac Consumer Confidence for October: +4.2% m/m (prior -5.6%)
  • China data-September CPI: +1.6% y/y (expected +1.8%) and PPI -5.9% y/y (expected -5.9%)
  • PBOC sets USD/CNY mid-point for the trading day at 6.3408
  • Think you know everything about oil? Think again: "New Economics of Oil"
  • Singapore central bank monetary policy announcement
  • Japan data: PPI and money stock
  • Researchers say weaker EMs will slow Japan GDP growth
  • The Federal Reserve is making "a mistake of historical proportions"
  • Trade ideas thread for Wednesday 14 October 2015
  • Venezuela says oil producer technical meeting to be held October 21

NZD the early mover with a 50-odd point plunge as Reserve Bank of New Zealand Governor Wheeler spoke, saying (amongst other things) that further easing seems likely. The NZD/USD was marked a lot lower but came back just over half way quite quickly before trading back to its low. The rest of the session was spent in retracement mode, with the NZD/USD now higher than where it was before Wheeler began.

AUD/USD came off with the kiwi, but not to the same extent, but it too soon started to lose ground. A home loan rate hike from a local commercial bank ignited talk of a November rate cut from the RBA, which contributed to the weakening on the currency in the morning.

AUD/USD fell (in a spike back to its lows) after Chinese CPI and PPI data (CPI was lower than expected, PPI on expectations) and then AUD/NZD sellers kept it under small pressure (and added to the kiwi recovery) when the New Zealand government announced a surplus (for details, see bullets, above).

USD/JPY sellers were spurred on by falls in the Nikkei, but after hitting lower than the overnight (just under 119.50) it came back to around 119.70. So not a big range for it today.

EUR, CHF and GBP all had small ranges against the USD. EUR attempted 1.1400 twice (one just above, then second time falling short a few points. Cable, on the other hand, while not a large range, has had a steady tick higher.

Oil ground out a few cent gain, gold jumped above $1174.50 before settling. Regional equities generally took the lead from a lower Wall Street:

  • Shanghai+0.06%
  • Nikkei -1.46%
  • HK -0.5%
  • ASX -0.14%

The Monetary Authority of Singapore (the country's central bank) has slightly reduced the rate at which the SGD will appreciate (for details, see bullets, above).

Still to come:

  • UK labour market preview: All eyes on wages once again
  • Preview of the Australian September employment data due 15 October 2015