Forex news for Asia trading Tuesday 15 December 2015

A light news flow day in Asia relieved by some scheduled releases from Australia and New Zealand and day two of the Bank of Japan Tankan (inflation expectations):

  • Australian Mid-Year Economic and Fiscal Outlook (MYEFO) out now
  • RBA December Minutes: AUD adjusting to significant declines in commodity prices
  • New Zealand government Half-year Economic and Fiscal Update out now
  • BOJ Tankan - inflation report out now

The NZ and Aust. news did not depart from from what was expected and provided little in the way of volatility. The government budget updates from the two countries didn't surprise anyone and were greeted in a subdued fashion. Moody's and S&P comments on the Australian MYEFO were sanguine.

RBA December Minutes reinforced the view of a central bank becoming more comfortable with how the economy is developing. They are not turning cartwheels at Martin Place (I'm guessing on this, who knows what they actually do get up to in between meetings) but the outlook contained in and between the lines in the Minutes are of a bank very much on hold. There is no sign of a rate cut on the horizon. nor a hike, for that matter.

Other items on the news were minor, though the People's Bank of China devalued the yuan against the USD for the 7th day in row today. And not by a small amount, again.

  • Russian PM Medvedev says serious economic challenges are in place
  • PIMCO on Australia: Coming up to a 97 out of 100 score!
  • Moody's on the Australian MYEFO: In line with expectations
  • US CPI preview: Inflation the final part of the Fed puzzle
  • Australian Finance Minister Cormann: Doesn't expect Australia will lose AAA credit rating
  • S&P on Australia: Fiscal outlook still appears likely to improve
  • ASB: Overall, the NZ Government books look healthy
  • RBNZ reweights the NZD TWI (effective tomorrow)
  • People’s Bank of China (PBOC) sets yuan reference rate at 6.4559
  • Fitch nails it: Sharp China slowdown would hit global growth hard
  • Goldman Sachs: EUR/JPY levels and targets
  • Citi trade of the week: Sell AUD/JPY targeting 84.10
  • NZD traders - Global Dairy Trade auction today during London time
  • Australia - ANZ weekly consumer sentiment at: 115.4 (prior 116.3)
  • Trade ideas thread for Tuesday 15 December 2015

Cable had a jump to (briefly) above 1.5180 in the Sydney morning but has settled back around a still positive for the day at 1.5160 and thereabouts. USD/CHF lost a few points from late NY. EUR/USD ticked 30 or so points to the stronger. USD/JPY was also slightly higher but is near enough to unchanged now as I update, while EUR/JPY gained as is around session highs just above NY highs.

Gold dipped to a fresh low from the overnight but has retraced a few dollars. Oil is more or less flat.

Regional equities with Shanghai closed for the lunch break:

  • Nikkei -1.06%
  • Shanghai +0.09%
  • HK +0.45%
  • ASX +0.07%

Still to come:

  • NZD traders - Global Dairy Trade auction today during London time
  • US CPI preview: Inflation the final part of the Fed puzzle