Forex news for Asia-Pacific trade on December 5, 2019:
- RBNZ gives banks seven years to increase capital buffers
- RBNZ's Orr: We're in a 'hold phase' in monetary policy
- BOJ's Harada: Bold stimulus has helped improve Japan's finance
- Australia October retail sales 0.0% m/m vs +0.3% expected
- Australia October trade balance +A$4502m vs +A$6500m expected
- Japan Reuters December manufacturing Tankan -6 vs -9 prior
- Boris Johnson to reveal his plan for his first 100 days on Thursday. Here's what it will include
- New Zealand Q3 construction spending +0.4% vs +1.0% expected
- UK ComRes election poll puts Conservatives at 42%, Labour at 32%
Markets:
- Gold up $1 to $1475
- WTI crude down 23-cents to $58.20
- Nikkei 225 up 0.8%
- CAD leads, AUD lags
The New Zealand dollar is almost back to where it started the day but it went on a nice run mid-way through Auckland trade. It popped on the bank capital rules. Part of the jump was that the rules were less-onerous than feared but sovereign yields also rose, suggesting there might be some debt issuance and that improved the carry situation. That was the first leg of NZD strength; the second came after Orr said they're in a 'hold phase' in monetary policy, sending the kiwi to 0.6560. However from there it slid back to 0.6535, giving back most of the gains, perhaps with some specs getting a bit too overloaded in longs.
Elsehwere cable continued to hold strong with polls showing the Conservatives shoring up support and on track for a solid majority. GBP/USD is just shy of the US highs at writing and up 11 pips in Asia.
USD/CAD also continued on its track lower. The drop started on BOC optimism and the retracements have been virtually non-existent so far. Of course the 4.2% rally in oil on Wednesday also didn't hurt. Look for more big moves in crude as the two-day OPEC meeting gets underway.
The euro and yen haven't done much of anything in Asia with no real risk trade in play. Talk on the trade war front has been nil so far today.
