Forex news for Asia trading Friday 12 May 2017

  • US and China reach a trade deal: beef, chooks, financial services ...
  • Gold gains in Asia after trend line bounce
  • Data still to come from China, as early as today
  • PBOC inject funds via MLF today
  • CAD - latest on HCG - uncertainty over funding capabilities putting its future in doubt
  • Australian Credit Card purchases and balances for March
  • PBOC sets USD/CNY central rate at 6.8948 (vs. yesterday at 6.9051)
  • NZD traders ... the fun don't be done from the RBNZ - McDermott to speak Monday
  • BOJ JGB buying operations today ... no change in amounts from prior operation
  • JPMorgan's Frenkel comments on the Fed, BOJ, ECB, and China
  • Moody's on Australia: Budget supports fiscal strength, but deficit wider
  • Japan money stock data for April ... bigly
  • EUR/USD: BTMU confident EUR has bottomed; en-route to 1.14
  • Heads up - US President Trump interview on NBC news
  • New Zealand - BusinessNZ Manufacturing PMI (April): 56.8 (prior 57.8)
  • IMF says high uncertainty for Mexican economy for next year and a half
  • Its US CPI day - preview
  • Nearly 50% of the Fed Board of Governors aren't there, & won't be for a while
  • NZ data - Home sales (April) down 31% y/y
  • ICYMI: Forexlive Americas FX news wrap: GBP falls on BOE but retraces declines.
  • US retail sales preview: Time for the consumer to step up
  • And, for just £17 you too can have a tote bag with a hairy face printed on it
  • Trade ideas thread - Friday 12 May 2017
  • Economic data due from Asia today

A day of lower-tier data from Asia but enlivened by some news out of China. Despite this currencies remained in small ranges ahead of CPI and retail sales data from the US due Friday morning.

The People's Bank of China injected liquidity today, using 6 and 12 month loans to banks through its Medium Term Lending Facility (MLF). The rates it set were the same as in its previous use of this facility.

Further news followed from China, this time a trade deal (beef, chicken, some financial services) with the US. Small steps, but progress nevertheless. It is another sign of the back-pedalling on the harsh rhetoric that had come from the top of the US and should be a positive for the outlook on global trade.

USD/JPY has net slipped a little on the session; after a pop above 113.90 during the Tokyo morning its down under 113.70 as I update. Nothing of note in news from Japan, the BOJ nor Japanese data today.

EUR/USD, USD/CHF and GBP/USD are all little changed, EUR a few tics to the better. Gold and oil are little to the upside also, but not too much in either.

A similar story for AUD and NZD, both have had small ranges and both are little changed on the session. There was news from Canada on home Capital Group, CAD was barely troubled with its small range today.

Regional equities:

  • Nikkei -0.65%
  • Shanghai +0.39%
  • HK +0.07%
  • ASX -0.99%

Still to come:

  • US CPI preview: Yellen and the Fed shopping for answers
  • US retail sales preview: Time for the consumer to step up
  • Data still to come from China, as early as today