Forex news for Asia trading Wednesday 13 February 2019
RBNZ (read posts from the last one up):
- 4. More from RBNZ Governor Orr: FX rate has been well behaved in recent times
- 3. Responses to the RBNZ monetary policy statement earlier
- 2. RBNZ Gov Orr press conference on today's monetary policy decision
- 1. RBNZ leaves cash rate unchanged
A good sized move higher for the New Zealand dollar as the Reserve Bank of New Zealand announced its Monetary Policy Statement. The MPS wasn't as dovish as markets had expected, and NZD shorts were sent scrambling to cover, sending the kiwi to just above 0.6820 before it calmed a little. RBNZ Governor Orr then spoke at his press conference, reiterating the less than dovish outlook. The kiwi had another move higher, this time above 0.6840 where it remains as I update.
Elsewhere:
- China's President Xi will meet the top US trade negotiators on Friday
- Goldman Sachs getting more bullish on oil - OPEC 'shock and awe' to drive it higher
- More on Mnuchin hoping for productive trade talks in China
- Moody's on the BOJ - can sustain accommodative policy despite side effects
- Brexit - More on Ford stepping up preparations to move production out of UK
- A record 7 million Americans are 90 days or more behind on their auto loan payments
- PBOC sets USD/ CNY mid-point today at 6.7675 (vs. yesterday at 6.7765)
- Fed's Mester (more): Getting close to neutral interest rate
- US Treas Sec Mnuchin: Hope for productive trade meetings
- Fed's George: Economy is in a good place
- Fed's Mester: Over the long run US debt is not on a sustainable path
- US commander warns of 'little to no verifiable change' in North Korea's military capabilities
- Japan PPI for January: -0.6% m/m (expected -0.2%)
- Fed's Mester remarks on balance sheet runoff, normalisation
- ECB's Lautenschläger: Banks relocating to EUR area have made progress
- Australia - Westpac consumer confidence for February: +4.3% m/m (prior -4.7%)
- Heads up for BOJ Governor Kuroda comments to come (from 0520GMT)
- US national debt now to a record $22 trillion
- Brexit - UK press reports Ford accelerating preparations to move production out of UK
- Brexit - UK press reports May told she face a major government revolt
- Trade ideas thread - Wednesday 13 February 2019
- Private survey oil data show surprise draw in US crude stocks
- More from RBA's Heath, confident on jobs market, business confidence
AUD was dragged higher by the RBNZ announcement, not to the same extent. AUD/USD above 0.7120 and then above 0.7130 as Orr spoke.
Currencies across the board (yen excepted) were higher also.CAD was a strong performer, following its gains during the Europe and US sessions. Hopes were heightened for a US-China trade deal of some description, especially when news crossed that Chinese President Xi would meet with Mnuchin and Lighthizer on Friday.
Also of note today were comments from Fed officials Mester and George, supporting the FOMC pause.
Still to come:
