Forex news for Asia trading Monday 11 April 2016
- Ex-BOJ's Shirai comments on no more easing this month - more detail
- AUD assets a beneficiary of flow of funds from Japan
- Japan chief cabinet secretary Suga comments on yen - one-sided move
- World Bank keeps China GDP forecast at 6.7% for 2016
- Australia - February Home loans: +1.5%m/m (expected 2.0%)
- China March CPI 2.3% y/y (expected 2.4%) & PPI -4.3% y/y (expected -4.6%)
- People’s Bank of China (PBOC) sets yuan reference rate at 6.4649 (vs. Friday at 6.4733)
- Australia the 2nd-most-popular target market for Chinese property investors after the US
- Yellen to grant an audience with Obama, Biden
- Japan data: February Machinery Orders -9.2% m/m (expected -12.0%)
- UK's BCC survey - Economy slowed in Q1
- China Securities Journal headlines - economy expected to bottom soon
- NZ Card spending for March: Retail +0.1% m/m (expected +0.3%)
- Oil has opened higher to start the week
- Trade ideas thread - Monday 11 April 2016
- IMF on negative rates - help deliver extra monetary stimulus & ease lending conditions
- Former BOJ member Shirai - BOJ should not ease more this month
- UK press (AEP) report Chinese govt adviser - 'Yuan needs to fall by 15%'
- Australian weekend press reports on rising bets of an RBA rate cut in May
- Monday morning Forex prices, early indications - 11 April 2016
- China passenger car sales +7.8% (March) y/y (-3.7% in February)
Weekend:
- Fed's Williams is the rock and roll and central banker
- Earthquake hits Pakistan, India and Afghanistan
- US election: Democrat Sanders wins in Wyoming
- Suga says G20 pact does not rule out intervention by Japan
- Video: What's next for USD/JPY
- Insight from Janet Yellen's most-trusted advisor
- Plenty of skepticism on Canada's outsized jobs gain
- ECB's Mersch says policy must be "proportionate" and respect rules
- North Korea says it successfully tests a "long-range missile engine"
Yen strength again today, beginning in the early goings on during the NZ morning, with USD/JPY dropping under 108.00, comments from ex-BOJ board member cited (see bullets above). It reversed over the following couple of hours back toward 108.30 but as the Tokyo morning got underway the move was lower again, to circa-107.60 and then another bounce, while the Nikkei showed a bit of life, coming back from its earlier lows (but still negative on the session so far). A volatile sort of Asian session for it thus far.
AUD and NZD had decent two-way movement also, both traded a little higher earlier (around 0.7570 and 0.6815 respectively) before selling off (to just under 0.7530 and 0.6790) before recovering all of their losses.
Housing finance data from Australia showed a bounce from the January decline, confirming other signs of some stabilisation in the housing market in Australia.
EUR, CHF and GBP were not where much of the action was today, all little changed from late Friday's levels (yen crosses notwithstanding)
Oil opened strongly in Asia today, WTI well above $40 but then giving a lot of the move back as I update. Plenty of weekend news on the oil market front, as usual, but it is difficult to pin the opening surge on any of it (difficult for me anyway, others may have a better explanation). Gold gained a few dollars through the session.
China inflation edged higher while deflation at the PPI level persisted, though not quite so badly as has been the case.
Regional equities:
- Nikkei -1.15%
- Shanghai +1.82%
- HK +0.49%
- ASX -0.10%
Still to come:
- BOJ Governor Kuroda speaks at 3:15pm Tokyo time (0615GMT)
- Yellen to meet with Obama, Biden 3pm NY time
More:
- Abenomics rebuked as BlackRock joins $46 billion Japan pull-out.
- Aussie Hazards From Mortgages to Mines Lift Macquarie Bond Risk.
- Iraq Boosts Oil Production to Record Before Talks to Cap Output.
- Spain to ask Brussels for extra year to meet deficit target
- German government debt ratio sinking faster than planned
- China looks at revamp of sovereign bonds (FT- gated)
