The forex trading headlines for Asia trading today

  • The Reserve Bank of New Zealand left the benchmark interest rate unchanged at 2.5% – the decision was widely expected.
  • RBNZ governor Wheeler reiterated his view that the New Zealand dollar is “overvalued”, and that the BOJ’s huge new monetary stimulus is underpinning some of the NZD gains
  • Australian Q1 CPI came in below expectations; while a near-term RBA rate cut does not appear to be on the cards, there is little inflation pressure to hold the RBA back, should they wish to cut
  • Australian Q1 CPI 0.4% m/m (vs. +0.7% expected and +0.2% prior)
  • Australian Q1 Trimmed Mean CPI 0.3% m/m (vs. +0.5% expected and +0.6% prior)
  • Australian March Internet Skilled Vacancies rose 0.1% (vs. -1.5% prior)
  • China’s bank regulator says it will strengthen regulation on wealth management products this year – but issued no further details as of yet
  • China Banking Regulatory Commission said it is to implement real-estate control policies
  • Japan March Corporate Services price Index -0.2% (vs. -0.3% expected)
  • At the end of the New York day Apple announced its results – details here

USD/JPY chewed through the offers around 99.50 that had capped throughout the New York day but only managed 99.70/75 before falling again, finding bids at 99.20/25. there was little in the way of any news out Japan today, although the Corporate Services Price Index showed a less negative than expected (hooray for Abenomics …). Offers at and ahead of 100.00 remain, though there was some talk that there size is diminishing as options expire.

AUD/USD fell on the Q1 CPI results, which came in below expectations. The CPI result was surprisingly low and indicates inflation will not be a concern should the RBA want to cut rates. The next RBA meeting is May 7, but there is little indication they are considering a rate cut then, at this stage.

NZD/USD rallied 40 points on news early in the session that the RBNZ had left rates unchanged. It retraced much of the gap up and then traded in a quiet band for the remainder of the day.

EUR was very quiet indeed, in no more than a 15-point band. CHF, ditto – very quiet indeed. GBP/USD was very much the same, but found a slight bid late in the session, up 20 points from its low.

The 2013 Ashes cricket squad was announced today. English cricket is in a lot of trouble this summer, let me assure you