Forex news for Asia trading Wednesday 20 July 2016

  • Japan stocks - Nikkei down for the first time in a week
  • Surprise PBOC yuan fix ... not over yet for the yuan
  • Gold pops 1335
  • Think AUD and NZD are weak? Check out this Turkey
  • PBOC sets USD/CNY mid-point today at 6.6946 (vs. yesterday at 6.6971)
  • China's NDRC on 2016: GDP expected to grow 6.5-6.8%, & CPI around 2%
  • Australia data - Westpac leading index (June): -0.22% m/m (prior +0.21%)
  • RBC says no Fed hike for another year; also gold price forecasts
  • Meanwhile, in Australia: Man on train has his snake confiscated
  • Donald Trump is the official Republican nominee
  • Japan earthquake update
  • Overnight press: Fed officials more confident of hike before year end
  • Reuters reports on inventory data: "Oil down, glut eyed"
  • Overnight press: Australia’s biggest money manager says AUD to go higher
  • Moody's on Italian bad loans - puts Europe to the test
  • Oil - private inventory data shows US crude inventory draw

News flow was light today.

Early moves in Asia today were in the yen, AUD and NZD, with the yen strengthening a little while the AUD and NZD dipped. The moves were not large.

USD/JPY hit a high in early Tokyo above 106.20 but soon fell away to under 105.90 before stabilising. Yen crosses fell also, with a weker EUR, CHF and GBP. Again, moves were not large.

AUD and NZD lost ground after small early ticks higher, AUD dipping down to 0.7490 area and NZD/USD toward 0.7020. NZD has recovered much of its lost ground, while AUD has not bounced quite so well.

The setting of the USD/CNY mid point by the PBOC today was a surprise, as despite overnight USD strength the USD/CNY was set lower today. Subsequent trading saw sell offs in USD/CNY and USD/CNH.

Gold was a mover also, it popped above 1335 (to around 1338+) on the back of stop losses being taken out, but the retrace was swift and it is little changed net on the session as I update.

The Nikkei fell a little today, after a strong week of gains. Nintendo gave back some ground after doubling since early July.

USD/TRY hit a high above its coup highs last Friday.

Donald Trump won the Republican nomination.

Regional equities:

  • Nikkei -0.63%
  • Shanghai -0.02%
  • HK +0.83%
  • ASX +0.61%