Forex news for Asia trading Wednesday 12 July 2017
- Bank of Canada meet today - preview
- More USD weakness: EUR, AUD, yen, NZD ... and more all up
- Bank of America Merrill Lynch on what to look for in Yellen's testimony
- ANZ on Canada - CAD/JPY, sell the fact
- More on the "PBOC Newspaper Says China Should Widen Yuan's Trading Band"
- Australia data - credit card purchases and balances for May
- PBOC sets USD/CNY central rate at 6.7868 (vs. yesterday at 6.7983)
- BOJ increases its JGB buying in 3-5 year window from prior operation
- Senator Warren says Trump’s Fed pick (Randy Quarles) is ‘dangerous’
- Westpac on their RBA outlook - "on hold throughout the remainder of 2017"
- Australia - Westpac Consumer Confidence Index for July: +0.4% m/m (prior -1.8%)
- USD/JPY tests US-time lows (& slips under)
- Japan - PPI for June: 0.0% m/m (expected 0%) & +2.1% y/y (exp +2.0%)
- HSBC expect USD/JPY to finish the year at 100
- China finance media say PBOC should widen the yuan trading band
- Something to watch for from the BOJ today - to boost purchases of 3-5 yr JGBs?
- Overnight piece on oil - GS on oil below $40
- Goldman Sachs on the most ‘safe-haven’ of ‘safe-haven’ currencies (& the least)
- Fed's Mester: Winding back balance sheet sooner rather than later preferable
- JPM's Dimon says QE unwind could catch investors by surprise
- New Zealand data - ANZ New Zealand Truckometer unchanged m/m
- Forexlive Americas FX news wrap: Dollar mixed as markets prep for BOC and UK employment
- US media: Cohn is Trump’s top candidate to replace Yellen at Fed
- Its 12 July (at least in Asia) - time for a Bank of Canada preview!
- Trade ideas thread - Wednesday 12 July 2017
- OIL - private inventory data shows US crude stocks larger than expected draw
- Economic data due from Asia today (start your engines)
More USD weakness in Asia, not across the board though with a few laggards.
USD/JPY continued its move lower from overnight, shedding another 50 odd points from (very) early highs just over 113.90. A heads-up came to look out for the Bank of Japan buying more JGBs in today's operation than they had previously (in the 3 to 5 year maturity window); this turned out to be a prescient call but the impact was basically zilch on the currency. We have seen the BOJ do this before and the FX response was a bid in USD/JPY, but today .... nope. For those who follow the 'What should happen? Did it?' approach it was a sell signal for a few more points on the downside. Nice one.
Elsewhere EUR and AUD traded higher against the USD, EUR/USD popped itself above 1.1480 for high since May 2016. AUD/USD ticked to above 0.7660 before drifting back a little from there.
USD/CAD dribbled a wee bit lower (ps. plenty of previews of the Bank of Canada meeting in the bullets above if you're interested).
Cable moved a little higher early on but is pretty much unchanged as I update.
Laggards? USD/CHF did very little. NZD/USD is up a few points only and well short of its overnight high (TBH, you could say the same thing about EUR/USD)
Gold has edged a little higher. Oil popped on the release of the inventory data at 4.30pm NY time.
Regional equities:
- Nikkei -0.42%
- Shanghai -0.20%
- HK +0.84%
- ASX -0.71%
