The forex trading headlines for Asia trading today
- China Manufacturing PMI for April 50.6 (vs. 50.7 expected)
- Japan: Labor Cash Earnings -0.6% y/y (vs. -1.2% expected)
- Japan bought 500m euros of ESM (European Stability Mechanism) bonds in April
- Japan bought 1.05bn euros of EFSF (European Financial Stability Facility) bonds
- Australian Industry Group Performance Of Manufacturing Index for April 36.7 (vs. 44.4 prior)
- Australia HIA New Home Sales for March +4.2% m/m (vs. -5.3% prior)
- Australia: RPData April House Prices -0.5% (vs. +1.3% prior)
- Australian Treasurer Swan: Australia will remain in deficit longer than forecast
- Greece’s securities regulator has extended a short-selling ban on bank shares to the end of July
- South Korean Trade Balance $2.6bn (vs. 3.80bn expected)
- South Korean Exports for April +0.4% y/y (vs. +2.4% expected)
- South Korean CPI -0.1% m/m (vs. 0.2% expected and -0.2% prior)
With China, Singapore and Hong Kong all out for the Labour Day holiday, and Japan’s markets open but with their collective mind on the Golden Week holiday it ended up being a very quiet session for the currencies. Most market focus was on the Chinese manufacturing PMI (see above and link for more), but when it came in almost on expectations there was little impact.
USD/JPY recorded some activity, re-testing its New York session lows just above 97.00. Talk of option-related buyers stopped the slide, and it bounced to 97.35/40.
AUD/USD, too, saw some activity, with a very weak Australian manufacturing PMI (see above and link for more) igniting chatter in the market for a near term rate cut. There will be more discussion of this in the market in coming days as we approach the May 7 RBA policy board meeting. The AUD range, though, was slight, 1.0356/61 to 1.0379/84 is a generous description.
