Forex trading headlines for Asia Thursday 24 April 2014
- RBNZ announces 0.25bp rate hike to 3% (the second hike in as many meetings), as well telegraphed and expected. Analyst reactions here, more rate hikes on the way.
- White House considers former banking lawyer for Federal Reserve board
- South Korea Q1 GDP (seasonally adjusted) +0.9% (vs. +0.8% expected)
- Japan – Corporate Service Price Index for March: +0.7% y/y, as expected
- Japan Buying Foreign Bonds, Y -463.9B (plus, the rest of this data)
- Conference Board Leading Economic Index for China, March: +1.2% (vs. +0.9% in February)
- Further strains in the China-Japan relationship? 3 employees detained in China
The kiwi dollar was the mover today, jumping 30+ points on the RBNZ’s well telegraphed and widely-expected 25 basis point hike in the official cash rate. It took a few minutes and then continued a little higher before settling around 0.8620/30.
EUR, CHF and GBP all had quiet sessions.
USD/JPY, too, did not move a great deal – it found selling again around late US highs above 102.50 and is ticking down toward 102.35 as of writing, dragging yen crosses off a little on the session too.
AUD/USD had a quiet session after yesterday’s CPI-inspired moves, sellers ahead of 0.9300 holding the topside, but 0.9280 limiting the downside as I type.
Australia and New Zealand markets are closed on Friday (local time), while Japanese CPI releases are eagerly awaited by the rest of the market.
Ahead of all that, of course, all eyes will be on Europe tonight , where ECB President Draghi speaks (scheduled at 0900GMT).
