Forex news for Asia trading Thursday 27 August 2015

  • AUD/JPY ... Nippon Life in talks to buy NAB insurance unit
  • Aussie coal mines for sale - Vale offloads another one
  • Responses to Australian Capex data - more
  • A Fed rate hike in October is a long shot ... but not to be ruled out
  • Nikkei reflecting the easing of concerns over China ... closes for lunch +1.9%
  • Responses to Australian capex data
  • Australia Q2 Capex: -4.0% (vs. -2.5% expected)
  • PBOC sets yuan mid-point reference rate at 6.4085
  • BOJ Kuroda's speech ... USD/JPY lower. Was this the big tell?
  • More from BOJ Governor Kuroda - He comments on China now
  • BOJ Kuroda Q&A comments now: 2% inflation target is best
  • China cracks down on 'rogue' traders
  • BOJ's Kuroda: Says price target can be achieved
  • Securities Daily: China should strengthen stock market stabilization measures
  • Heads up for yen traders - Bank of Japan Governor Kuroda speaking real soon
  • Citi on Cable falls overnight - how they used the moving averages in the move
  • More catch-up - NZ fin min English hints on looser fiscal policy if needed
  • (Overnight) Comments from ECB chief economist - ready to expand or extend QE
  • Has hedge fund legend Ray Dalio been closely watching the RBNZ?
  • "The Fed won't hike rates 'cause they can't!" While u were distracted, they already did.
  • Australian Q2 Capex data due today will be a focus
  • Trade ideas thread for Thursday 27 August 2015

Eco data, central banks due from Australia & Japan today. But, all about China again?

A relatively subdued day during Asia as the China crisis (should I trot out the old 'crisis' is Chinese for 'opportunity' or whatever the heck that saying is ... or is everyone sick of it?) receded.

The yuan was set at a fresh four-year low today at the PBOC central rate 'fixing'. Meanwhile, Chinese stock indexes opened in the positive and as of updating they haven't once touched negative. Quite a different sort of day for us here than we've seen in the past week or so.

Shanghai and Shenzen indexes are both up near 1.5% at the close for lunch. Japan's Nikkei closed +1.89% for its lunch break. HK, Australia, Korea ... all up on the session so far.

The calmer equity markets brought calm to FX too. EUR, CHF GBP ... all gained against the USD in more or less one-way trade. EUR up around 40 or so points. USD/CHF down around 30 or so. Cable a steady grind for around a 50 point gain.

. USD/JPY topped early in the session (pre-Tokyo time) above 120.20 and dropped away during Bank of Japan (BOJ) Governor Kuroda's speech late in NY (links above). It since recovered, though and is more or less straddling 120.10 or thereabouts as I update.

AUD was more active. We got Q2 Capex data today (see bullets, above) which came in below expectations on the headline (into a market that is accustomed to capex data coming in poor ... so not much of a surprises). Investment intentions estimates for 2015/16 were up somewhat, though, so this took the worst edge off the data. AUD rallied, helped along by the better China equity trading, to pop briefly above 0.7150 before coming back 30 or so points to be around 0.7125/30 as I update.

NZD/USD was better bid on the session, too. Its off its highs now and more or less mid-range for the session.

Oil was up around half a dollar or so (WTI). while gold too is up a few dollars.