Forex news for Asia trading Monday 10 May 2016
- China April retail auto sales +6.4% y/y
- Moody's on China - debt has increased to around 280% of GDP
- China commodities boom of 2016 - unwind continues
- Reuters on Aso's yen intervention comments - if 'one-sided' moves persist
- China April CPI: 2.3 % y/y (expected 2.3%) & PPI: -3.4 % y/y (expected -3.7%)
- PBOC sets USD/CNY central rate at 6.5233 (vs. yesterday at 6.5105)
- Japan finance minister Aso: no plans to, manipulate Forex moves on a long-term basis
- 3 BOJ board members to appear in Japanese parliament today
- HK press: China's top officials want to change course from debt-fuelled growth
- Japan economy minister Ishihara: Mon pol and fiscal stimulus both needed for growth
- NZ Fin Min: RBNZ takes financial stability seriously - will use lending controls if needed
- Shell has restarted production at a reduced rate at its oil sands operation in Alberta
- Australia data - ANZ's weekly consumer sentiment: 113.9 (prior 113.9)
- USD/JPY intervention - are the warning signs increasing?
- UK data - BRC Like for Like Sales (April): -0.9% y/y (expected +0.5%)
- NZ data - Card spending (Retail +0.9% m/m, beating expectations of +0.5%)
- ECB's Villeroy - Helicopter money not on the table - not needed
- U.S. companies brighten their earnings outlook
- New Zealand - ANZ Bank's Truckometer: -2.4% m/m (prior +2.5%)
- Fed's Williams Q&A coming up at 2200GMT
- Canada - Alberta Premier on return to work schedule
- Fed's Evans says the bank should aim for an overshoot (above 2%) on inflation
- The Fed on oil price dynamics - price fall on decline in demand
- Trade ideas thread - Tuesday 10 May 2016
- RBA memo expresses concern over changes to tax policy
- Bank of Canada on Alberta fires - impact on economy
- Japan press: Election complicates June BOJ decision
USD/JPY popped its overnight highs during the Tokyo morning. Comments from Japanese finance minister Aso were cited as a bit of a driver; he rabbited on again about potential intervention to combat 'one-way' yen movement. Circa-108.80 topped it out for the session, and 109 should prove further resistance.
No such commentary to drive EUR, CHF and GBP though, which all lost a little bit of ground against the USD (nothing huge ... and as I post they are now little if any changed on the session).
NZD was not doing much until NZ finance minister English hit the wires with speculation on RBNZ action on further macroprudential measures to combat high house prices in the country. To the extent that measures such as these (non interest-rate based) are implemented it removes an obstacle (perceived or real) to further rate cuts. NZD fell beneath its overnight lows. It dragged the AUD/USD lower with it, but AUD found bids around 0.7300 that held it there. The price behaviour around the figure (solid bids) catalyzed a few shorts to cover and AUD/USD popped and is on session highs as I post.
CPI and PPI China followed a little later (after the weakest PBOC setting for the CNY against the USD since March 4). CPI remained steady y/y and the y/y PPI improved a little ('improved' in the sense that deflation is not as a bad it was the previous month ... but, more encouragingly, do note the PPI came in positive on the m/m change at +0.7%).
Regional equities:
- Nikkei +1.50%
- Shanghai +0.13%
- HK -0.22%
- ASX +0.22%
- Iron Ore futures (Dalian) limit down again
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