Forex and Bitcoin news for Asia trading Tuesday 27 March 2018
- FX option expiries for Tuesday 27 March 2018
- China data: January-February industrial profits up 16.1% y/y
- PBOC sets USD/ CNY central rate at 6.2816 (vs. yesterday at 6.3193)
- Japan politics - former MoF official on questions on document tampering
- Japan - Services PPI (February): 0.6% y/y (vs. expected +0.7%)
- Fed's Quarles speaking - drops a word on the economy - says its "doing well"
- Australia - ANZ Roy Morgan weekly Consumer confidence: 117.4 (prior 118.5)
- More from Fed's Mester - no evidence yield curve signalling a weak US economy
- Trade ideas thread - Tuesday 27 March 2018
- Fed's Mester still sees rising rates in '18 & '19, but tariffs add uncertainty
- Futures exchange still wants Bitcoin ETFs - but concern on manipulation
USD/JPY continued to add to its overnight gains throughout the morning here in Asia, but to a limited extent only.
There was little news nor data - more developments in the 'land sale scandal' with a key official denying any involvement from PM Abe or his family. The CHF was slightly weaker alongside the better 'risk' tone, USD/CHF edging up a few points.
Regional equity markets were also in a positive mood following gains in the US
- Nikkei +1.66%
- Shanghai +0.73%
- HK +0.68%
- ASX +0.60%
Cable is little changed, as is EUR/USD.
AUD and NZD were party poopers. Both lost ground during the session. AUD/NZD lost a few points, giving the biggest loser award today to the AUD. Data from Australia was barely existent - but we did get new home sales for February. Sales of new detached houses declined for the second consecutive month. Tighter restrictions around investor lending and more obstacles to foreign investor participation were cited as factors contributing to the weaker conditions in new dwelling construction
On the central bank front we got remarks from the Federal Reserve's Loretta Mester (not as hawkish as usual) and Randall Quarles (nothing on mon pol from him) and a sharp revaluation (again) for the CNY against the USD from the PBOC, taking onshore yuan to a multi year high.
Some bank notes (and more):
- BoA on Canada and BoC: 3 more hikes this year, timing subject to CAD movement
- ANZ on what's next for sterling - two main scenarios ahead
- Goldman Sachs on gold - 3 reasons to like it
- The currency whales moving into euros ... estimates of up to $500bn incoming
- Financial markets making 2 critical misjudgements on Italy - the euro time bomb