Forex news for Asia trading Wednesday 14 October 2015

New Zealand, Australia

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: