Forex news for Asia trading Wednesday 12 October 2016
- Moody's on Australia - economy resilience but external financing risks
- Bloomberg on China Cities - Local Default Risks Rise
- Australia press: "Coal price doubling in three months could deliver $25b economic boost"
- Westpac on the RBA - gives "little probability to a further rate cut" in Nov.
- BOJ's Harada promises more action if needed
- AUD pops to a new high, GBP consolidating on its highs
- People’s Bank of China sets yuan reference rate at 6.7258 (vs. yesterday at 6.7098)
- PBOC deputy governor Zhang Tao removed as deputy governor
- BOJ's Kuroda says the bank will ease further if needed & benefits outweigh costs
- AUD and NZD on session highs
- Japan - Machinery orders (August): -2.2% m/m (expected -4.7%)
- Australia - Westpac's consumer confidence index (October): +1.1% m/m (prior +0.3%)
- ICYMI - Here's the UK PM May Brexit terms 'back down' story
- GBP/USD still gaining, 150+ points from overnight lows
- USD reversal - GBP, AUD, NZD all have a bounce
- Anyone looking at this trend line in EUR/USD?
- Gold technical analysis - levels to watch. Elliot Wave from Goldman Sachs
- Goldman Sachs technical analysis on oil - levels to watch (Elliot Wave)
- Trade ideas thread - Wednesday 12 October 2016
- Overnight oil news - OPEC want to cap production for at least six months
A huge overnight collapse in GBP and heavier AUD & NZD were all reversed in Asia today.
UK PM May back pedalled late Tuesday in the UK parliament, accepting that Parliament should be allowed to vote on the plan for taking Britain out of the EU. Perceptions are this diminishes the probability of a 'hard' Brexit, and these perception gave a bid to GBP. And what a bid. After initially creeping toward 1.2150 GBP/USD surged another 100+ points on buying and short covering in thin early Asian trade, before consolidating around 1.2250. But that wasn't the end, another move above 1.2280 and then some more consolidation, and as I update its banging on the door of session highs above 1.2300. (Just dipping below there now as I publish the wrap)
AUD and NZD were both strong performers. AUD/USD steadily gained to above 0.7560 (and NZD to 0.7085) before spending some time consolidating. A further AUD surge took it above 0.7585 (NZD to a slight new session high just over 0.7085) as the PBOC slashed the CNY (against the USD) in its daily mid-point setting. AUD/USD has not backed off too much and is sitting sideways now pretty close to its high of the day (NZD a similar behaviour, near the day's peak).
EUR and CHF were laggards - they are both net little changed on the session against the USD.
USD/JPY, too, is net little different on the session after a circa 103.30/65 range. Machinery orders from Japan today came in better than expected.
Gold dropped early but has since recovered to be back around 1257 as I update, while oil is not much changed today (up a tad).
Regional equities:
- Nikkei -0.67%
- Shanghai -0.32%
- HK -1.14%
- ASX -0.30%
Still to come:
- BOJ board member Harada press conference at 0500GMT (his earlier comments in the bullets above
More:
