Forex news for Asia trading Wednesday 9 August 2017
- Japan economy minister: Don't just look at CPI to judge if out of deflation
- More on China inflation data today
- What European CFOs Are Saying About the Threat of a Strong Euro
- Westpac revise up their AUD forecasts – 0.70 by end 2018
- China July CPI 1.4% y/y (expected 1.5%) & PPI 5.5% y/y (expected 5.6%)
- Heads up - still awaiting the Chinese inflation data
- Australia Home loans (July): 0.5% m/m (vs. expected 1.5%)
- PBOC sets USD/CNY mid-point today at 6.7075 (vs. yesterday at 6.7184)
- "Risk" continues to wobble lower ... Yen & gold up, AUD lower
- Australia's Westpac consumer confidence index: 95.5 in August (prior 96.6)
- Comments from ex-BOJ Kiuchi crossing - BOJ may change 10-yr yield target to 3-5 yrs
- Magnitude 6.6 earthquake hits Northwestern China's Xinjiang - Xinhua
- AUD/USD back under 0.7900 - Kent will be happy
- The bullish Japanese economy data pointing to a higher than expected GDP
- "Commodity currencies in the spotlight" - AUD important support, USDCAD resistance
- So you want to trade Bitcoin? Pay attention to your charts. They tell the story you want to hear.
- BoAML: Latest EUR proprietary flows points to an important change
- RBA's Kent: AUD appreciation is more about USD depreciation
- More: N. Korea's strategic force considers operations to strike near Guam
- RBA's Kent speech: "Fixed Income Markets and the Economy" (full text)
- AUD traders - heads up for RBA speech in 2 minutes time
- More on: Nth Korea seriously considering strike on Guam
- Yen ticking a little higher
- Trade ideas thread - Wednesday 9 August 2017 (pls post your fire and fury here)
- New Zealand - ANZ Truckometer July: -5.5% m/m (prior 0.0%)
- RBNZ monetary policy announcement due Wednesday - preview, scenarios
- China inflation data due today (July) - preview
- Australia housing finance data due today - preview
- OIL - private inventory data shows US crude stocks larger than expected draw
- Oil - heads up for the inventory data due around the bottom of the hour
- ICYMI: ForexLive Americas FX news wrap: USD dollar gets a JOLT
- The economic data due from Asia today is of a fire and fury like the world has never seen
- Kicking the whole thing off: Trump threatens "fire and fury" if North Korea escalates threat
The focus for the early part of the session was on US President Trump's 'fire and fury' comments and subsequent North Korean responses threatening (specifically) Guam.
The market response was toward 'risk off' with a higher yen, higher gold and lower AUD (for example). Moves were not overly large nor rapid, more of a slow grind.
USD/JPY ticked lower, under 110.20 before an hour or so of stability circa 110.10, then to under 110.00 and subsequently to below 109.80 (not for too long). Yen crosses headed lower alongside, AUD/JPY a notable big loser as AUD/USD slid on the session also.
The Korean won fell on the session, its down around 1% as I write.
Chinese inflation data was the economic calendar focus, with CPI and PPI both coming in very slightly below expectations and having little market impact. Also from China, the People's Bank of China yet again refrained from a net injection of money market cash, with a 140bn yuan injection matching the drain from offsetting maturities (140bn in reverse repos matured today). The Bank set the reference rate for the CNY against the USD at its highest (for CNY) since 10 October last year, continuing the strength of the yuan we have seen.
EUR/USD has slipped just a tad lower from its late US levels. USD/CHF has slipped a little too, the CHF a beneficiary of the shuffle out of risk. Cable has spilt the difference, little changed net on the session.
CAD has lost ground against the USD while gold is sup on the session.
Regional equities:
- Nikkei -1.35%
- Shanghai -0.21%
- HK -0.66%
- ASX +0.56%
