Forex news for Asia trading Thursday 13 July 2017
- Coming from China over the weekend - National Financial Work Conference
- China H1 trade balance (January - June) announced
- People's Bank of China conducts MLF operation
- China Shows It Can Clean Up Credit Without Killing Off Growth
- PBOC sets USD/CNY mid-point today at 6.7802 (vs. yesterday at 6.7868)
- New Zealand - ANZ Roy Morgan Consumer Confidence (July): -1.9% m/m ( prior +3.1%)
- Australia - Consumer inflation expectations for July: 4.4% (prior 3.6%)
- USD/JPY all over the shop (that's a technical term)
- Yuan Won't Rival Dollar Without Overhaul, Says Former IMF China Chief
- NAB AUD/USD technicals - gradual rise toward 0.7750/0.7835 increasingly likely
- Westpac on Yellen and balance sheet normalisation and coming rate hikes
- SG on what "the market chose to ignore" in Yellen's testimony
- More UK eco data - BCC survey of businesses shows Q2 economic activity subdued
- UK data - RICS House Price Balance for June: 7% (expected 15%)
- While the BOJ mulls hiking growth forecast, govmt mulls cutting theirs
- You wanna upgrade Japan growth forecasts? Wait ... "Beer shipments sink to record low"
- NZ data - June Food Prices +0.2% m/m
- More on the expected BOJ forecast revisions - up for growth, down for CPI
- Japan press - BOJ considers downgrading CPI forecasts for FY 2017 & 18
- BoE's McCafferty in the UK Times - "Bank may bring early end to QE"
- ICYMI - Forexlive Americas FX news wrap: It's not everyday you get a hike in rates outside the US.
- NZ house prices (REINZ) data - prices up, sales volumes down
- (ICYMI) - Tertiary Activity Index for May was down, but still a beat
- Trade ideas thread - Thursday 13 July 2017
- Pentagon spokesman says initial indications not a North Korea nuclear test
- (ICYMI) China credit growth surged again
- Economic data due from Asia today - China trade balance
Nearly across the board USD slides here in Asia today.
USD/JPY was a big mover, after an early Tokyo gain (to briefly above 113.50 it dropped away and is under 113 as I update. Yen crosses were not quite so weak.
EUR/USD has ticked a little higher from early levels, retracing some of the US-time drop. USD/CHF has edged a little lower and cable is up a few points as well. A headline in the UK Times (comment from Bank of England hawk McCafferty, see bullets above) had only minor impact but helped send it on its way.
AUD/USD and NZD/USD both joined in with minor moves higher against the USD for both. USD/CAD is little changed on the session here. Oil, too, little changed but gold has added a few dollars.
The People's Bank of China refrained from open market operations today but did inject one-year funds through the Medium Term Lending Facility.
The UST 10yr yield slid a little further on the day.
The Bank of Korea kept its policy rate unchanged today at 1.25% (record low rate). Bank of Korea Governor Lee Ju-yeol followed up with a news conference:
- He announced the Bank had revised up its growth outlook this year to 2.8% (from 2.6% announced in April)
- Added that the boost did not take into account the supplementary budget of 11.2tln won (approximately US$9.8bn) being sought by the government (not yet approved by parliament).
Regional equities:
- Nikkei +0.15%
- Shanghai +0.33%
- HK +1.17%
- ASX +1.05%
