Forex news for Asia trading Friday 11 November 2016
- Obama and Trump meet at the White House. The video they didn't want you to see.
- Aussie banks - Thousands of staff investigated for suspected misconduct
- Stan Druckenmiller: 'All the reason I have owned gold ... they may be ending’
- USD/JPY backs away from 107, dips sharply
- RBA's Debelle on the Global Code of Conduct for the Foreign Exchange Market
- China power consumption +4.8% y/y (Jan-Oct)
- Leonard Cohen has died, aged 82
- PBOC sets yuan reference rate for today at 6.8115 (vs. yesterday at 6.7885)
- Japan finance minister Aso: It is exceptional for a 5 yen move in 2 days
- Japan finance minister Aso speaking in Tokyo, not adding much
- More on USD/JPY levels above here (hello 107!)
- Meanwhile in Australia: Man in hospital after hour long fight with goat
- Japan data - PPI (October): -0.1% m/m (expected flat at 0.0% m/m change)
- More on the outlook for China (commodity & Australia implications)
- Japan - Reuters Tankan shows manufacturers' confidence up for 3rd straight month
- Uh-oh ... China’s Sky-High Home Prices Sustainable, Harvard Scholars Say
- Aust. govmt & Westpac wary of commodity price reverse
- Goldman Sachs CEO Blankfein says US election results bode well for the firm
- Trade ideas thread - Friday 11 November 2016
- NZ - Food Price Index for October: -0.8% m/m (prior -0.9%)
- NZ data - BusinessNZ Manufacturing PMI for October: 55.2 (prior 57.7)
- World’s biggest hedge fund: “Much more that we don’t know than we do know"
USD/JPY hung around at the high 106s for much of the Tokyo morning, but the selling ahead of 107 held firm (for now). As the morning drew closer to lunchtime USD/JPY dropped quite sharply, down to under 106.30 and a retest of the NY morning lows. Japanese news and data flow was light, not that we need much of these to move rates this week.
Meanwhile, this bout of USD/JPY weakness saw EUR, CHF and GBP all up a little against the USD. The moves were not overly large (30+ points for EUR/USD, for example.
AUD and NZD got a bit of a boost. NZD/USD has spent the session trading in a 30-odd point range around 0.7205/10. AUD was a little weaker early, down to below overnight lows before back above 0.7620 as I update. Gold hit its session low just under the overnight low at the same time as the AUD, its bounce has not been as high though. Its mid range for the session as I update while AUD is at session highs.
The People's Bank of China weakened the CNY against the USD again today, through 6.8 and then some.
Asia EM FX sold off further today (Indonesian Rupiah dropped its most for 3 years). Plenty of discussion about concerning EM central banks in the currency market intervening to provide some support to their currencies scaled back the losses as the day progressed.
Regional equities:
- Nikkei +0.22%
- Shanghai +0.61%
- HK -1.05%
- ASX +0.31%
More: If you're stlll with me down here, Goldman Sachs views on Trump and the markets:
- Investors have generally interpreted Mr. Trump's proposals as favorable to nominal growth prospects
- Investors see more balanced risks to inflation in the years ahead
- There has been little concern to date about more hawkish leadership at the Federal Reserve
- In Mr. Trump's win, investors appear to see: (1) effective fiscal stimulus, (2) limited disruptions to trade, and (3) relatively dovish appointments to the Fed.
- We will be watching the transition process closely to see whether these assumptions will hold.
