The forex trading headlines for Asia: Monday 28 October 2013
Weekend:
- Japanese PM Abe interview: “concerns that China is attempting to change the status quo by force”
- China to deliver ” unprecedented” reforms at forthcoming Communist Party meeting
- Janet Yellen to meet with US senators next week ahead of Senate committee nomination hearings … but, trouble ahead?
- US may have may have bugged Angela Merkel’s phone since 2002
- Italy’s political center-right could split
- Germany’s tax revenues are likely to rise more than expected in 2013
Monday:
- Weekend China data: Industrial profits +13.5% YTD y/y (prior +12.58%)
- “BIS sees risk of 1998-style Asian crisis as Chinese dollar debt soars”
- German finance minister Schaeuble: aims to issue no new debt from 2015, cut debt to GDP below 60% within 10 years
- UK Hometrack survey for October: +0.5% m/m (vs. +0.5% prior also)
- 4 Chinese coast guard vessels enter Japan waters near disputed islands
- Shanghai to increase supply of affordable housing after home price rises
- Speech by Benoît Cœuré, Member of the Executive Board of the ECB
USD/JPY opened in a very illiquid Monday market (New Zealand holiday) with a gap up, getting as high as 97.79 before drifting off to nearly cover the entire span. It traded in a tight band around 97.50 in a quiet Asian day.
Tight bands were the order of the day elsewhere in the markets, with EUR, GBP and CHF all very tightly constrained.
AUD and NZD ticked a little higher, NZD the better performer up 35 points on the session. AUD/USD put on just over 20 points.
A day of little activity apart from the early yen move.