The forex trading headlines for Asia trading today, Wednesday 19 June

  • Japan Merchandise Trade Balance total for May: Y -993.9Bn (vs.expected Y-1220Bn)
  • Japan Adjusted merchandise trade balance for May: Y -821.0Bn (vs. expected Y-890Bn)
  • Japan Merchandise exports for May: 10.1% y/y (vs. expected 6.45%) (A breakdown of export performance by region gives a hint of where global economic growth is strongest: exports to the US are up 16.3% y/y, exports to China up 8.3% y/y, exports to the EU are down 4.9%)
  • Japan Merchandise imports for May: 10.0% y/y (vs. expected 11.0%)
  • Australia: Westpac/MI Leading Index for April +0.6% m/m (vs +0.1% prior)
  • Australia April Conference Board leading economic index: +0.3% (vs. prior +0.1%)
  • New Zealand Q1 current account balance: -0.663Bn (vs. -0.635Bn expected)
  • New Zealand Q1 current account to GDP ratio: -4.8% (vs. expected of -4.8%)
  • Bank of Japan offered to buy 500Bn yen in 5 to 10 year government debt
  • Bank of Japan offered offered to buy 300b yen in debt of greater than 10 year maturity
  • China money market rates climbed again. The seven-day repo at 7.2% (Tuesday’s average of 6.8207%) and the overnight repo at an average of 6.2527% (Tuesday’s average was 5.6653%). Despite this, there was no indication of any relief from the PBOC.
  • Cyprus has asked its European partners to help ease a cash crunch at Bank of Cyprus
  • More concerns about further deficits in Greece

EUR/USD sat just below 1.3400 for most of the session as it marked time ahead of the FOMC later tonight. GBP/USD, too was very quiet.

The activity again during the Asian session was in yen, AUD and NZD.

USD/JPY tested towards its overnight highs in the morning ahead of the Tokyo Stock Exchange opening strongly. Data showed exports rose strongly in the latest period (see bullets, above). USD/JPY had a relatively quiet Tokyo morning session, drifting a little lower as the Nikkei fell away, but falling more rapidly over the lunch period as Nikkei futures continued to get hit down. BOJ buying of JGBs did not support USD/JPY today, but USD/JPY nonetheless found buyers at 0.9515/20 support level – the Asian market seemingly reluctant to take it on any extended moves ahead of the FOMC tonight.

AUD/USD traded very heavily in the morning, with plenty of EUR/AUD sellers active. It held near overnight lows, though, 0.9435/45 buying finally out gunning the sellers to see it rally to 0.9475/80 as I type.

NZD/USd largely tracked the AUD, but with just a tad more strength than its trans-Tasman counterpart.