Forex news for Asia trading Tuesday 11 December 2018
- Asia FX central bank intervention (sell USD, buy INR)
- Heads up for AUD traders - stops in the spotlight on the downside
- Bank of America strategist is most worried about global markets since 2008
- Japan finance minister Aso comments on FX discussions with US
- China Vice Premier Liu He speaks with US trade rep
- EUR/USD view for the months ahead (spoiler: not up much)
- PBOC sets USD/ CNY central rate at 6.8996 (vs. yesterday at 6.8693)
- AUD data: Nov. business conditions 11 (prior 13) and business confidence 2 (prior 5)
- NZ data - ANZ's monthly inflation +0.6% m/m in November
- Huawei CFO bail - there will be no decision today, judge to resume hearing tomorrow
- ICYMI: A Chinese court has banned the sale and import of some iPhone models
- US equities - Nomura on unusual hedge funds behaviour
- More on the big fiscal boost coming from Japan ahead of the sales tax hike in 2019
- UK PM May to meet with German Chancellor Merkel to discuss Brexit
- Australia weekly consumer confidence: 117.5 (prior 119.5)
- Goldman Sachs like the Australian dollar higher
- New Zealand Card Spending for November, Retail: -0.4% m/m (expected +0.3%)
- Trade ideas thread - Tuesday 11 December 2018
- NZ data - ANZ Truckometer for November: -1.9% m/m (prior +4.6%)
Japanese stock markets slid again during morning trade, with a yen move intertwined as USD/JPY trickled down from its US highs back towards 113.00. The Nikkei hit an 18-month low. US overnight stock index trade slid also, emini S&Ps were down 0.5% on Globex… Until a headline hit with comments from China's Commerce Ministry, the gist of which was that Vice Premier Liu He had been in phone talks with US Treasury Secretary Mnuchin and US Trade Rep Lighthizer. Stocks found support on this, as did the Australian dollar (and other currencies).
Earlier we had seen the data of most note today, the NAB business survey, which showed a further weakening for Australian business confidence and conditions. Conditions remain at relatively decent levels, while confidence is not so healthy. Forward indicators in the details suggest further softening to come. The Australian dollar did little on this data.
The PBOC slashed the fixing value for the onshore yuan today, to 6.8996 from 6.8693 on Monday. This 300+ point change was the largest cut for the onshore yuan since August of this year. In other Asian currencies, the Central Bank of India was reportedly a seller of US dollars against the rupee, which had fallen sharply on news of the resignation of the bank's governor yesterday.
Net for the session here in currencies we had a slight show of strength against the USD. EUR, GBP, CHF, AUD, NZD, yen all a touch better against the big dollar. USD/CAD is barely changed.
Still to come: