Forex news for Asia trading Wednesday 2 December 2015

  • It’s still too early for the Fed to start raising rates. Here's why, says ex staffer.
  • BlackRock sees room for monetary easing in China and India
  • Goldman Sachs says the credit market recession signal is a false one
  • What do you want to know about the Chinese renminbi (or yuan)? Check this out
  • China's NDRC says it will loosen control over corporate bond issuance
  • Trade ideas thread for Wednesday 2 December 2015
  • Australian Q3 GDP data, the implications the AUD and for RBA monetary policy
  • More from Fed's Brainard: There is still some room to go in terms of labor market slack
  • BOJ's Iwata: Japan's economy continues to recover moderately
  • PBOC sets USD/CNY mid-point today at 6.3958
  • Fed's Brainard: Delayed liftoff, shallower rate hike path needed
  • Australian Q3 GDP beats - responses
  • RBA Governor Stevens on the Q3 GDP result: 'Not a bad outcome'
  • Australia Q3 GDP: +0.9% q/q (+0.8% expected)
  • RBA's Stevens: Swings in AUD have helped avoid damaging cycle of inflation & bust
  • BRC Shop Price Index for November: -2.1% y/y (prior -1.8%)
  • RBA governor Glenn Stevens is not a dove nor hawk, he is a penguin
  • China's Vice Finance Minister Zhu: Managed yuan best for economy in transition
  • Morgan Stanley's top 10 FX trades 2016!
  • American Petroleum Institute (API) crude oil inventories up 1.6mln bbls
  • Mark Zuckerberg and Priscilla Chan celebrate the birth of their child by announcing a huge philanthropic initiative
  • Japan Monetary Base for November +32.5% (prior +32.5% also)

A subdued beginning to the session and it didn't heat up too much from there.

RBA Governor Glenn Stevens gave a speech, with little currency impact. The Australian dollar tracked in a quiet range until the release of the Q3 GDP report. Partials for this had been coming in as beats in the preceding days, with economists rushing to revise their forecasts higher (mostly) ... but even with the higher consensus median around 0.8% the result was a beat, coming in at +0.9% q/q (more detail at the bullets above).

The AUD spiked to a new high but profit-takers took advantage of the good data to sell some longs, and the AUD/USD drifted a little lower than pre-release. There hasn't been much movement though, little more than a 30 point range for the session.

NZD/USD dribbled a little lower on the session also and a similar small rage comments can be applied to it.

EUR/USD, cable, USD/JPY all tracked small ranges also. USD/JPY has managed a 20 or so point gain on the session as I update. A special shout-out to the USD/CHF, which managed a fresh low (compared to its US range) before popping back into the range and tracking sideways.

We had a speech today from Fed Governor Brainard, followed by Q&A responses; she was at the dovish end of the spectrum and would appear to be a 'no hike' vote at the December FOMC meeting to me. Given the ranges for the currencies today the market doesn't seem to be all that bothereed.

Gold tested a little higher but rolled over somewhat to be more or less flat on the session.

Oil fell on the release of the American Petroleum Institute inventory report, which showed a surprise rise in stocks. There has been little follow through though, in fact a retrace then a grind sideways.

Regional equities with Shanghai closed for the lunch break:

  • Shanghai +0.35%
  • Nikkei -0.27%
  • HK +0.27%
  • ASX -0.13%