The forex trading headlines for Asia trading today
- PBOC sets yuan mid-point at 6.2342 (vs. 6.2408 previously), which is a post-2005 reforms high
- Letter with toxin enclosed sent to US senator
- Australia: Westpac/MI February leading index +0.6% m/m (vs. prior +0.4%)
- Australia: Westpac/MI Annualized Growth Rate +4.2% in February (well above its long -term trend at 2.8%)
- Chairman if China Investment Corporation, Jin Liqun,said that CIC was ‘worried’ about US and Japan QE
- New Zealand Q1 CPI +0.4% m/m (vs. +0.5% expected)
- New Zealand Q1 CPI +0.9% y/y (vs. +0.9% expected)
- New Zealand Online job vacancies down 1.2% in March (vs. -2.5% prior)
- South Korean March PPI -0.4% m/m (vs. +0.7% prior) and -2.4% y/y (vs. -1.6% prior)
EUR and GBP had very quiet days today, both looking a little soft but nevertheless trading in extremely narrow ranges. News of a US senator receiving a toxin-laced letter (see bullets, above) raised concerns, but without an overt ‘risk off’ move.
NZD/USD rallied in the Asian morning to test above 0.8500 but could not sustain into sellers around 0.8510/20, staying within the range it had established in Europe and New York overnight.
AUD/USD continued to see offers ahead of 1.0400 and then traded as if on a string connected to the Shanghai Composite, falling a little as the Chinese equity market lost ground..
USD/JPY found continued bids around 97.50, with talk again that Japanese importers were big buyers, pushing it back above 98.00 and through to as high as 98.33. There is selling ahead of 98.50 to be done, and the price slowly drifted back to 98.10/15 as I write.
