Forex trading headlines for Asia Wednesday 26 February 2014
- Japan, US fail to seal TPP deal
- Bank of Japan governor Haruhiko Kuroda interview – The Fed might taper, but we’ll keep pumping
- BOJ’s Miyao: Says recovery driven by consumption
- New Zealand finance minister English: Interest rate rises are inevitable
- Australia – Construction Work Done for Q4: -1.0% q/q (expected is +0.2%,)
- China – yuan weakens below fixing again
- Bank of Japan (BOJ) Governor Kuroda – Japan’s economy making steady progress
- Bitcoin: Mt. Gox served with U.S. federal subpoena
- BOJ’s Ishida: Japan recovery trend to remain intact even if GDP contracted
- Mizuho says setting up low interest loan facility in response to BOJ program
- Predictions of China’s property bubble bust premature … Xinhua
The Chinese yuan took centre stage again today. The People’s Bank of China (PBOC) set the reference rate higher again today (i.e. further weakening the yuan), with the market then taking it further (and ditto, further weakening the yuan). It did manage to retrace this further loss, though, stabilizing soon after the open of trade.
Elsewhere, cable, EUR/USD and USD/CHF were all relatively quiet, with a very slight strengthening of the USD against EUR and CHF (we are talking a handful of pips, though … if someone said “nothing happened, get a life” I couldn’t, in good conscience, disagree).
AUD/USD took a sharp fall in morning trade, seeing stops triggered below 0.9 taking it toward 0.8970 very quickly indeed before a rebound over the rest of the session (as of writing). AUD/NZD stops were also noted, and there was some talk of AUD/JPY stops also.
Any USD/JPY selling to trigger AUD/JPY stops, though, was soaked up, with USD/JPY buyers around 102.15 and a grind higher toward 102.40.