Forex news for Asia trading Thursday 14 July 2016
Coming up - Bank of England meeting!
- Goldman Sachs on GBP ahead of the Bank of England meeting today
- "Brexit vote ravages sentiment in UK housing market " (Reuters on the RICS survey)
- Preview - Bank of England meeting Thursday, plenty of questions to be answered
- Barclays BoE preview - forecast no change, support for GBP
- Moody's on Australian banks - Over time could be pressure on credit profile
- The mindset that leads traders to be dangerously overconfident
- Reserve Bank of New Zealand to update economic forecasts
- Steve Cohen's performance coach reveals the trait shared by successful traders
- "Australia added jobs in June: record-low rates & stronger business confidence"
- More from China NDRC, comments on overcapacity, solid economy
- Australian (June) Employment Change: +7.9K (expected 10K, prior 17.9K)
- People’s Bank of China sets yuan reference rate at 6.6846 (vs. yesterday at 6.6891)
- Goldman Sachs on GBP ahead of the Bank of England meeting today
- New Zealand - ANZ Consumer Confidence for July: -0.6% (prior +2.3%)
- Australia - Consumer inflation expectations for July: 3.7% (prior 3.5%)
- "Brexit vote ravages sentiment in UK housing market " (Reuters on the RICS survey)
- Singapore Q2 GDP (advance reading): 2.2% y/y (expected +2.2%
- French president Hollande spends 10,000 euro a month for hair care
- More from Fed's Harker: Says 2% inflation target is not a ceiling
- UK data - RICS House Price Balance (June): 16% ( expected 10%)
- First all female ticket for US President announced
- New Zealand - BusinessNZ Manufacturing PMI for June: 57.7 (prior 57.1)
- Preview - Bank of England meeting Thursday, plenty of questions to be answered
- Fed's Harker says he sees up to 2 rate hikes this year
- New Zealand - ANZ Job Ads for June: +0.5% m/m (prior +0.2%)
- Barclays BoE preview - forecast no change, support for GBP
- Trade ideas thread for Thursday 14 July 2016
- Nikkei reports that fiscal policy and oil prices could brighten BOJ outlook
Some early movement in the pre-Tokyo trading period today. There were reports of explosions in Brussels which saw a small shift away from 'risk' and a bid for the yen. The explosions were said to be 'just' in a line of cars and the news didn't go anywhere from there. 'Just' exploding cars? Maybe Europeans have a different (lower) quality expectation of their motor vehicles. (More - it was arson, not terrorism)
Yen crosses fell away a little, EUR, AUD, NZD, GBP yen crosses all lower. The CHF didn't do much (USD/CHF pretty flat although with a falling USD/JPY its yen cross slipped a little).
After those initial moves markets quietened somewhat, but the quiet wasn't to last.
Good data from NZ had little impact on the NZD, and we awaited the main event, the Australian employment report (for June). Aussie employment came in strong, with a big jump in full time employment. On the less than positive side unemployment ticked up by 0.1% on the month and hours worked were softer.
AUD/USD jumped on the data but after hitting towards overnight highs it settled and has since retraced a little.
Movement in the yen followed, it weakened after the earlier strength on the exploding cars business; USD/JPY approached its overnight high before settling. Cable gained ground alongside, sending GBP/JPY back on another rocket ride. EUR and CHF strengthened a tad.
An announcement from the RBNZ that they would be updating their economic outlook on July 21 (not a rate review, just an outlook update) saw the NZD drop quickly, from circa 0.7280 toward 0.7220. Maybe the RBNZ have found an unlikely new weapon, announcing a review of their outlook?
Gold lost ground on the session after an initial rise and oil edged a few points back after its overnight slide.
Regional equities:
- Nikkei +0.86%
- Shanghai -0.42%
- HK +0.05%
- ASX +0.32%
