Forex news for Asia trading Monday 26 September 2016

Monday

  • Trump's economic proposals issued - here's the gist
  • "Mr. Yen" Sakakibara says USD/JPY slowly to 90 in 2017
  • Reuters: "Oil prices rebound after Algeria says all options open at OPEC meeting"
  • Citi says volatility in gold and FX may increase after US election
  • PBOC sets USD/CNY mid-point today at 6.6744 (vs. Friday at 6.6670)
  • Arnold Palmer: 'The King' of golf dies at 87
  • Morgan Stanley's weekly outlook for the currencies
  • Meanwhile in New Zealand - Christchurch Uber drivers warned not to break the law
  • Caterpillar (world's No.1 heavy machinery maker) sees green shoots in mining
  • Tudor Investment Corp said to have closed its Singapore trading desk
  • S&P500 companies expected to report negative earnings growth for 6th consecutive quarter
  • Soc Gen: Risk of any hiccup in capital flows will trigger a sharp EUR rally
  • Algo that has picked every US election since 1984 says Trump to win
  • German fin min urges a tough grilling of Draghi in forthcoming testimony
  • New Zealand August trade balance: -1265m (expected -735m)
  • More Brexit - UK Treasury's "complete reversal" of gloomy short term forecasts
  • Who's scared of a 'hard Brexit'? Senior financiers in London say they are
  • Trade ideas thread - Monday 26 September 2016
  • China banks lending to each other - another record! Contagion risk warning
  • OIL - Russian Energy Minister Alexander Novak - doesn't give a rat's about output freeze
  • Weekend Brexit news - plenty to do ahead of Article 50 says BJ
  • Monday morning Forex prices, early indications 26 September 2016

Weekend:

  • Here is how the FX market moved last week
  • Less growth, larger deficit in Italy once again
  • Saudi Arabia injects $5.3B as banking system squeezed
  • OIL - Saudi Arabia offered to scale back production to January levels
  • OIL - Russia didn't get production cut offer from OPEC - energy minister
  • AUD/NZD: Target 1.07 in the coming weeks - ABN-AMRO
  • Workers used to be afraid of someone doing their job better, now they're afraid of someone doing it cheaper
  • Look for continued EUR and JPY gains against the US dollar - Credit Suisse
  • Warren Buffett does not trade trend

Currencies are little net changed on the session here in Asia to open the week, but gold has lost a few dollars in a one-way move since early Tokyo. The rock topped out around $1340 and has since slid $7+.

USD/JPY fell ahead of the Tokyo fix, but since then it has stabilised and then ticked higher for a near round-turn move. There was no news from Japan today, but we will be getting a speech news conference from Bank of Japan Governor Kuroda later (he speaks at a meeting with business leaders in Osaka at 0530GMT, with a press conference to follow at 0745GMT.

EUR and CHF are little changed on the session. Cable has managed to add a few tics, but a narrow range.

AUD/USD topped mid-morning in Sydney just above 0.7630 and has since dropped back to trade around 0.7610.. NZD/USD has followed a similar pattern on the session, from a high around 0.7250 it has since given back 25 points and is mid-range as I update. Early trade data from NZ (August data) showed a larger than expected deficit.

In China today we got a net drain of liquidity during PBOC open market operations, seemingly a sing the central bank is trying to curb excessive leverage. Having said this, there was a big net injection of funds last week, so OMO moves from the PBOC are not one way traffic.

Regional equities are a pond of red (not deep enough to be a sea really):

  • Nikkei -0.64%
  • Shanghai -0.71%
  • HK -0.60%
  • ASX -0.06%

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