Forex news for Asia trading Tuesday 24 April 2018
- Australian Q1 inflation data - more analyst responses coming in
- China politburo meeting - focus on economy
- Australian Q1 inflation data - analyst responses coming in
- China - resurgent state control of firms risks worsening trade tension with US
- Australia Q1 CPI: 0.4% q/q (vs. expected 0.5%)
- PBOC sets USD/ CNY reference rate for today at 6.3229 (vs. yesterday at 6.3034)
- North Korea - Kim Jong Un says he would accept IAEA inspections
- Australia - weekly consumer confidence to 118.4 (from 116.0 the previous week)
- Japan data: Services PPI for March 0.5% y/y (expected 0.5%)
- Morgan Stanley on the AUD ahead of CPI data - reiterate their bearish view
- US debt crisis? Nope - the US is not Greece.
- More from RBA's Kent: Next move in interest rates likely to be up, but no hurry
- China press: More room to cut RRR
- OIL - SG on what is driving oil prices
- RBA's Kent says the impact from interest only loan expiries likely to be moderate
- Trade ideas thread - Tuesday 24 April 2018
US Treasury bond yields were a little lower in Asia today, which coincided with a halt in the rising USD. Earlier in the session the big dollar gained more ground, with EUR, AUD, GBP, NZD, CAD, yen, all down a little more since late afternoon US trade. But these all (except one) retraced and as i update the net change on the day is very little indeed.
It was inflation data day in Australia - we only get official CPI 4 times a year. The headline came in under expectations while the two 'core' measures were just a touch above but still at or below the lower bound of the RBA target band (see bullets above for more. In a nutshell, inflation pressures will not be driving any RBA rate hike any time soon). The Australian dollar had fallen on approach to the data release (it had fallen overnight prior to this) broadly in line with the continued USD strength I mentioned above but bounced after the data (again, broadly in line with the retrace mentioned above also.)
NZD/USD was a big loser on the session, while other currencies managed a retrace against the USD the NZD/USD continued heavy. There was little fresh out of NZ today.
Still to come:
