Forex news for Asia trading Wednesday 20 May 2015

  • Hong Kong exchange exploring commodities link with China
  • Japan chief cabinet secretary Suga: Q1 GDP positive, expects more recovery
  • Shanghai Securities News: PBOC easing insufficient, money not flowing to the real economy
  • Fund manager survey: Oil not undervalued, & bullish sentiment still for the US dollar
  • UK inflation data overnight ... Goldman Sachs update their CPI forecasts - say low deflation risk
  • Ahead of the FOMC Minutes: Boa/ML finds portfolio managers' liftoff expectations shifting
  • Australia - Westpac Consumer Confidence Index for May: +6.4% m/m (prior was -3.2%)
  • More from Amari: Economy should be able to exceed 3% nominal growthM
  • More on Japan Q1 GDP
  • Japan economy minister Amari: Japan economy likely to recover moderately
  • Japan preliminary Q1 GDP: +0.6% q/q (vs. +0.4% expected)
  • Some quick previews of the FOMC April meeting Minutes due on Wednesday
  • Reuters poll: 50 of 62 surveyed see Fed lift off in Q3 2015
  • More on 'Merkel gives Greece 12 days to reach funding deal'
  • Wednesday 20 May 2015 trade ideas thread
  • Goldman Sachs sees oil at $45 by October
  • API: crude oil inventories -5.2 mln bbls

Most currencies had small ranges today during the Asian timezone, for many it was a greater range than normal but still nothing to get too excited about.

USD/JPY gained around 40 or so points off session lows. Overnight data from the US (strong housing data) boosted the USD, continuing in Asia today. Japanese Q1 GDP data came in better than expected (at least on the headlines, the detail still shows areas of weakness, notably business capex). Another niggling detail, inventory build contributed 0.5% to the better GDP print. Net exports contributed -0.2%.

The weaker yen and maybe even the better eco data (mainly the yen) boosted the Nikkei, back toward 15-year highs.

USD/JPY tested toward 121 but so far hasn't managed to hit the figure.

EUR, GBP, CHF all dipped a few points in the early going against the USD but as I update the EUR/USD (and USD/CHF) is pretty much back to where it was near the NY close. Cable has managed to hold onto its small gain.

AUD had an early dip, too, but has since put on 30+ points. Consumer confidence showed a very strong gain on the month ... the RBA rate cut and a better received government budget cited as contributors to the happier shopper.

NZD has had a more or less steady grind higher, its up 30+ points also.

API oil inventory data came out near the end of the Ny day, showing a big draw down. Oil prices jumped small on the data release and then stalled somewhat. They've steadily budged higher since then, though. Gold is marginally changed on the session.

Still to come - FOMC Minutes today!

  • Some quick previews of the FOMC April meeting Minutes due on Wednesday