Forex news for Asia trading Wednesday 13 April 2017
- USD edging higher in Asia (Umm, please ignore the Godzilla-like yen)
- More China data due - March trade balance due tomorrow
- More from Kuroda: Will continue with QQE, YCC to meet 2% inflation target
- Recap: Japan core machinery orders rebound, sign of gradual capex pickup
- March CPI from China: 0.9% y/y (expected 1.0%) & PPI 7.6% y/y (expected 7.5%)
- Australia data - Credit card balances and purchases, February
- Heads up for China data at the bottom of the hour - CPI, PPI for March
- PBOC sets USD/CNY central rate at 6.8940 (vs. yesterday at 6.8957 )
- BOJ reduced its buying of JGBs in the 3-5 year range compared with prior operation
- USD/JPY (and yen crosses) lower - stops hit
- USD/JPY orders
- EUR/USD orderboard
- Australia - Westpac Consumer Confidence (April): -0.7% m/m (prior +0.1%)
- AUD and NZD orderboards
- BOJ's Kuroda: BOJ easing is for price stability, not targeting FX market
- Japan - Machinery Orders for February: 1.5% m/m (expected 3.6%)
- Japan March PPI data: 1.4% y/y (expected 1.4%)
- NAB looking for a lower AUD/USD, 4 reasons (and forecasts)
- BOJ Governor Kuroda to appear in parliament again today
- Economic data due - China CPI (it 'fell' off the post but is now re accommodated)
- New Zealand - ANZ Truckometer for March: +1.7% m/m (prior +2.3% m/m)
- ICYMI - BOJ's Kuroda comments yesterday on exiting QE
- Bank of Canada puts a classic cheat code on its website
- Australian dollar trading will be a bit less fun after John Clarke's death
- OIL - recap of the Europe/US moves
- Trade ideas thread - Wednesday 12 April 2017
- OIL - Private inventory data shows larger than expected draw in inventory
- Economic data due from Asia today - China CPI day
ICYMI:
- Forexlive Americas forex news wrap: JPY pairs taking it on the chin
USD/JPY held its early session high into the Tokyo fix but once that was out the way the strong yen flexed again, taking USD/JPY below 109.50, but not too much lower. Yen crosses fell along with the lower USD/JPY. Its circa 109.50 as I update.
On the news/data front from Japan we got improved machine orders, the highest bank lending for the month since May 2009, and PPI that was neither here nor there really.
Bank of Japan JGB buying was smaller in the 3 to 5 year space compared with their previous operation - the Bank has told us this would happen in April. Bank of Japan Governor Kuroda was in parliament (again) today, not adding anything he hadn't said before really, though.
Australian consumer confidence data fell on the month (WPAC data), confirming the weekly sentiment data slide (it bounced this week but the trend is lower). But the focus was on China inflation data (March), which showed a small tick higher in y/y CPI (but a lower m/m change) and a small drop in the PPI (admittedly from an 8 year high in the previous month). CPI is still short of target, but with a strong PPI Chinese authorities will not be dissuaded from their (very) gentle winding back of accommodation (it was the 13th consecutive day the PBOC skipped OMOs, for a net small drain (again) on the day due to maturing reverse repos).
EUR, CHF, NZD and AUD all lost ground against the USD. Ranges were not large though.
GBP is pretty much unchanged against the big dollar, not as strong as the yen but a good (relative) performer on the session nonetheless.
Politics news - a House 'special election' in Kansas resulted in a Republican victory, but it was a close-run thing apparently.
Regional equities:
- Nikkei -1.20%
- Shanghai -0.32%
- HK -0.15%
- ASX -0.03%
Still to come (tomorrow):
- More China data due - March trade balance due tomorrow
More:
