Forex news for Asia trading Tuesday 10 January 2017
- More USD weakness (yes, further)
- BNP on the CAD - should outperform a lot of other currencies in 2017
- UBS saying China 2017 GDP about 6.4%
- EUR, yen, AUD extending gains, USD weakness across the board
- Chinese new year coming up - get your inflatable Donald Trump chicken here!
- More China data to come this week - total financing for December
- Moody's: 2017 outlook for creditworthiness of sovereigns in Asia Pacific is stable overall
- China state planning head says GDP to grow at more than 6.7% in 2017
- China December CPI: 2.1% y/y (expected 2.2%) and PPI 5.5% y/y (expected 4.7%) prior 2.3%
- PBOC sets USD/CNY mid-point today at 6.9234 (vs. yesterday at 6.9262)
- Australia - Retail Sales for November: +0.2% m/m (expected +0.4%)
- UK private labour market survey show continued growth in jobs
- UK - BRC like-for-like sales for December: +1.0% y/y (prior +0.6%)
- BoA/Merrill Lynch say stockmarket to melt up, then melt down
- PIMCo looking for higher USD/CNY, says China is facing a 'trilemma',
- Yahoo (who?) says company to change name to Altaba (who? 2.0)
- Australia- Weekly consumer confidence: 120.1 (prior 113.4)
- JPMorgan's Dimon says strong economy will speed interest rate hikes
- USD/JPY drops sharply under 116.00
- Trade ideas thread - Tuesday 10 January 2017
- Fed's Rosengren sees a possible upside surprise for global growth
The USD had weakened in overnight trade, and that continued here in Asia today. EUR, yen, AUD, NZD, CHF all beneficiaries - all extending on overnight highs.
EUR/USD 5 min candles
GBP/USD lagged behind a little, despite May's denial she talked about a hard Brexit the market is still hatin' on the GBP.
News flow was once again very light, but we did get some data from China and Australia. Chinese December inflation was the focus, the CPI coming in just under last month's result, but the PPI continued its surge at a much higher than expected 5.5% y/y. The Producer Price Index is now registering its highest since September of 2011, mainly driven by the recently higher commodity prices, but the softer yuan contributing also. (Speaking of higher commodity prices, iron ore in China is up 10% so far this week.)
Various analysts suggest that while the ongoing producer price increases have not trickled into consumer level prices the pressure is not quite on yet for the PBOC to tighten monetary policy, but a lean toward a move conservative policy may nevertheless come as debt build-up continues.
Gold was higher also today, and oil gained a little also, retracing not very much of its big overnight slide.
Regional equities:
- Nikkei -0.87%
- Shanghai -0.07%
- HK +0.52%
- ASX -0.94%
More:
- Politics: Job for the Sprog (in-law): Trump's son-in-law Kushner to become senior White House adviser
