Forex news for Asia trading Thursday 22 June 2017

Reserve Bank of New Zealand :

  • More RBNZ responses & implications for the NZD
  • Responses to the RBNZ - "maintained a reasonably optimistic tone"
  • Responses to the RBNZ - "key policy guidance paragraph ... unchanged"
  • RBNZ announcement - on hold (as expected)
  • New Zealand - Credit card spending for May 0.9% m/m (prior +0.9%)
  • More from BOJ's Iwata: "absolutely no need to raise interest rates"
  • More on China not facing same pressure as Fed to shrink balance sheet
  • Yen ticks higher - USD/JPY now testing overnight low
  • BOJ's Iwata: Japan inflation outlook is skewed toward downside
  • PBOC sets USD/CNY mid-point today at 6.8197 (vs. yesterday at 6.8193)
  • FX tech views on AUD & NZD via NAB
  • Oil: Explaining the drop in oil prices & what's next? - ABN AMRO
  • PIMCO: China yield curve inversion a signal of strain - should be taken seriously
  • German finance ministry monthly report: Brexit brings opportunity
  • (Not FX, K?) Harley-Davidson wants to buy Ducati
  • More on Mexico's finance minister rate hike comments
  • Japan economy - on the up (but the BOJ is missing its target)
  • Trade ideas thread - Thursday 22 June 2017
  • It's the Nasdaq's turn to steal the spotlight

The ICYMI bit:

  • ForexLive Americas FX news wrap: The oil slide continues to lowest since August
  • GBPCAD is the biggest mover on the day. What do the technicals say?

The Reserve Bank of New Zealand kicked off the session in Asia today with an as expected 'on hold' interest rate decision (OCT remains at 1.75%) and a relatively sanguine view on prospects for the New Zealand economy. The short media release that accompanied the decision (there was no Monetary Policy Statement nor media conference) was notable also for dialling back on the stern comments we normally get from the RBNZ on NZD strength; today there was no hectoring on the currency and a seeming acceptance that with strong terms of trade and economic performance it'd be nice if it fell but hey, whatareyagonnado?

The NZD popped on the announcement and has tracked more or less sideways since. The general view on the NZD seems to be that much of the good news has been baked into the price and that it should underperform going forward. A key question is what will the NZD weaken against? New Zealand has one of the better performing economies than just about anywhere in the developed world (with risks of course, these never go away).

USD/JPY was also a mover today, it fell a little going into the Tokyo fix and the selling never really let up. The range was not large, the move down until it held around 110.95 and has recovered 15-odd points (as I update). Yen crosses were generally lower. EUR, CHF and GBP against the USD are all little changed and have tracked only small ranges.

AUD/USD added a few points in the morning, slipped a few points and has ended barely net changed on the day so far.

The People's Bank of China set the yuan reference rate nearly the same as yesterday, but most notably today the bank allowed a decent sized net drain from money markets, with ample liquidity apparently available.

We got a speech from the Bank of Japan's Iwata today, with nothing out of line.

Regional equities:

  • Nikkei +0.05%
  • Shanghai +0.76%
  • HK +0.45%
  • ASX +0.70%

Gold has had a good session, adding $6 (a little more actually).