Forex news for Asia trading thursday 22 October 2015 October 2015

  • PBOC comments FX fluctuations in Q3 were not large scale interventions
  • NZ finmin English: NZ has seen FX rate adjust considerably
  • China SAFE deputy head - Not seeing capital flight
  • China - MNI Business Indicator (October): +8.4% m/m
  • PBOC sets USD/CNY mid-point today at 6.3497
  • Australia - NAB Q3 Business confidence: 0 (prior 4)
  • Nouriel Roubini comments on China economy, no hard landing
  • BOJ loan officer quarterly survey shows mixed demand
  • Great article on 'spoofing'. Want to know more about how markets work? Read this.
  • Brazil holds benchmark interest rate steady
  • RBA's Edey speech ... little on economic outlook nor monetary policy
  • Some China stock market chatter doing the rounds
  • German finance ministry says 'temporary' slowdown in Q3
  • Chinese President Xi says China is committed to developing capital markets
  • ASB RBNZ view on the wires, expect hold in October, cut in December
  • New Zealand - ANZ Job Advertisements for September: +2.1% m/m (prior -1.7%)
  • Trade ideas thread for Thursday 22 October 2015
  • Oil - IMF says Middle East exporters face potential $1tln budget shortfall

The Chinese stockmarkets sell off yesterday afternoon reverberated through local markets today, with early (rather overblown) fear manifest in the rumour doing the rounds that China was going to abandon stock market support. I noted the rumour, skeptically, but it seemed to strike a fear chord, sending Chinese stocks opening lower for the session and the AUD and NZD under some pressure as a result.

The Shanghai Composite shrugged it off (as of updating) and has traded small higher. Along with a positive business survey published in Australia the AUD (and NZD) covered some of the ground they had lost during the European morning yesterday. NZD was further helped by a comment from New Zealand finance minister English that the Kiwi $ had adjusted considerably already; and then a sharp move above 0.6745 saw a rapid gain on stops before some stabilization.

Elsewhere currencies were more subdued, EUR, GBP, CHF and even CAD all in tight ranges against the USD and on crosses. USD/JPY was kept in a tightly bound range also along with yen crosses.

Oil ticked out a small gain while gold is barely changed after a dip lower has recovered somewhat.

Regional equities at the break for Shanghai lunch:

  • Shanghai +0.24%
  • Nikkei -0.08%
  • HK was back from a holiday today, -0.79%
  • ASX -0.01%

Still to come:

  • Preview of the ECB meeting from Nomura