Forex news from the European morning session 14 Sept

News:

  • Fitch says Fed rate hike lift-off matters for emerging markets
  • PBOC's Ma says Chinese economy will do better than market expectations
  • PBOC says it will allow foreign central banks to trade in China's fx market
  • Chinese authorities seize yuan 1 trln of unspent local government budgets
  • PBOC sells net yuan 723.8bln of FX in August
  • ECB will increase QE within 6 months as recovery runs out of steam
  • ECB's Bonnici says it's "too early" to decide on new stimulus
  • Malcolm Turnbull resigns from Australian government
  • Australia's Abbott says he will contest Liberal leadership tonight
  • New Zealand's Key doesn't see a need for govt to stimulate economy
  • Australia's Robb says FDI rose 18% in 2014 vs 2013
  • Hong Kong central bank sells HKD to keep currency within trading band
  • UK's Corbyn appoints long-time ally and fellow left-winger as Chancellor of Shadow Cabinet
  • EURCHF struggles to hold gains above 1.1000
  • Option expiries for the 10am NY cut today 14 Sept

Data:

  • July 2015 Eurozone industrial production 0.6% vs 0.3% exp m/m
  • Japan industrial production July final mm -0.8% vs -0.6% flash
  • Italy CPI August final mm +0.2% vs +0.2% flash
  • Switzerland Producer and Import prices Aug mm -0.7% vs -0.5% exp
  • Nikkei 225 closes down -1.63% at 17,965.70

It's been an understandably cautious session with all eyes on the FOMC this Thursday

GBPUSD looked perky enough to start with but ran into offers again and has since retreated to look at support into 1.5400 while EURUSD has been in gentle slide all session to post 1.1311 from 1.1365

No major reasons for either move but traders are content to range trade so we've seen USDJPY down to 120.08 from 120.40 following on from softer Asian equity markets while USDCHF has dipped to 0.9667 before finding fresh demand to take it above 0.9700 twice

USDCAD has been treading water around 1.3250 while AUDUSD had a dip from 0.7090 to 07063 on news of the Abbott leadership challenge before bouncing back and testing offers/res around 0.7125 again

NZDUSD has found support into 0.6300 and staged a steady climb to 0.6335

Nothing by way of notable data out this morning or indeed later so we can expect range trading to prevail