Forex and Bitcoin news for Asia trading Monday 16 April 2018
The big weekend event was the missile strike on Syria from US, UK and French military.
The world had been waiting a week for a response and it finally came. The expectation, along with the 40+ hour delay before forex markets reopened for trade partially explained the limited response, with the risk sensitive AUD/JPY (I am using that here as a summary of the immediate response) trading up as early (very early) trade got underway. This a chart I posted much earlier in the session here:
Bitcoin found added gains also, again from an early post:
Fresh news on the session revolved, as it often does now, around politics; both from the US and Japan. In summary:
- Japan politics - Abe Cabinet support rate drops to 37%
- US: Comey interview on you-know-who: a serial liar who treated women like "meat"
- Former Japanese PM Koizumi says current PM Abe may quit in June
- US (Axios): Incoming Pence staffer withdraws after report Trump tried to block him
After an early move higher USD/JPY gave back some ground, fully retracing its Tokyo morning gains and cracking (just a wee bit though) to a new low compared to Friday US trade. It traded to a low of under 107.20 and is not far from there as I write.
EUR and CHF traded limited ranges only, while cable has net gained 30-odd points since late US trade on Friday.
AUD is a touch higher against the big dollar, as is NZD (not much of a gain for either). USD/CAD is up a few points.
Gold lost ground early in the session but has recovered, and a bit more, to be just shy of 1347.50 as of writing.
Other headlines of note:
- More on currency market intervention details crossing
- China hikes 14 day reverse repo rate
- China State assets regulator says will complete excess coal capacity cut
- Comments crossing on Japan / China talks
- AUD/USD levels in play for the session ahead
- Visa says UK consumers cut their spending by the most in more than 2 years
- UK - Right move House Prices for April: 0.4% m/m (prior +1.5%)
- New Zealand Food prices for March: +1.0% m/m (prior -0.5%)
- NZ data - March Services PMI expands at its quickest in more than year
- Trade ideas thread - Monday 16 April 2018
- US Ambassador to the UN says new Russia sanctions coming Monday
- India added to watchlist in US currency manipulation report
Bank notes:
- Trade recommendation (Barclays): Long GBP/NZD (entry, target and stop-loss levels)
- AUD/USD .... "faces upside risks this week"
To come:
- BOJ deputy governor to appear in parliament today (from 0730GMT)
- Heads up for US data due Monday 16 April 2018 - preview for March retail sales
- FX option expiries for Monday 16 April 2018 at the 10am NY cut
- The Fed schedule is busy in the week ahead. Here is a look
- AUD traders - heads up for RBA minutes due for release Tuesday (11.30am local time)
