Forex news for Asia trading Tuesday 17 May 2016
- Soros likes gold, but Paulson cuts his bets
- NZ Q2 2 year inflation expectations: 1.64% (prior 1.63%)
- Preview of the UK CPI for April
- AUD, NZD, GBP all adding to their gains
- Blackrock chair Fink: World needs heavy dose of fiscal spending
- RBA May meeting minutes: Appreciating AUD could complicate adjustment
- Singapore data: Exports shrunk, pace of contraction slowed
- People’s Bank of China sets yuan reference rate at 6.5200 (vs. yesterday at 6.5343)
- Japan PM Abe now making appropriate comments on sales tax
- Japan Aso: G7 to discuss currencies, Japan attaching utmost importance to FX stability
- Cable (and GBP crosses) higher in early Tokyo
- Japan economy minister Ishihara: No truth to media reports on delay in sales tax hike
- Australian data - ANZ / Roy Morgan Weekly Consumer Confidence: 115.1 (prior 113.9)
- CBA on what to expect from the RBA today (spoiler - little new)
- Japan GDP data due Wednesday, it could delay sales tax hike
- AUD and NZD orderboards
- NZD traders heads up - GlobalDairyTrade auction coming up today
- US working on a way to collect & disseminate data on US gov. bond market trading
- Brexit latest poll (ORB): 55% want in, 40% want out
- Volatility crushed - but here are the 6 risks to the uneasy calm
- Canada finance minister says Fort McMurray fire will be a challenge for the economy
- Tuesday 17 May 2016 trade ideas corner
- Corporate Japan expects strong yen to persist this fiscal year
- Stick this in your diary - Fed head Yellen to give a speech on June 6
- Japan Center for Economic Research expects real GDP grew just 0.28% in Q1
Cable (and GBP crosses) was a big mover in early Tokyo. It had edged up in the earlier hours, consolidating its overnight gains but jumped when taking out stops loss buyers above 1.4420. An earlier Brexit poll (55 to stay, 40 to go) was cited as a contributing factor to the strength. Dunno 'bout that. But it didn't it any harm.
AUD meanwhile had a quiet beginning to the day, but was marked higher on the release of the RBA May meeting minutes. Stops were noted (by me!) above 0.7315 and 0.7325 and these were taken out immediately. Restrained language from the RBA dampened hopes of a June rate cut, but analysts are not much changed on the prospects for more rate cuts a little later in the year (August is a bit of a favourite) and the minutes did little to convince or dissuade (IMO, but others will vary).
AUD/USD stabilised around 0.7330/40 for a little while before popping higher again.
The NZD tagged along, from looking a little soft around 0.6780 to above 0.6800 and then to hit circa-0.6830. Later stable, but low, inflation expecations data took some of the steam out of it, dipping back toward 0.6810, with the AUD/USD losing a few spreads too down from highs around 0.7365 toward 0.7345.
USD/JPY was range-bound, above 109.05 saw offers again while 108.90 was pretty much it on the downside.
CHF and EUR were not where the activity was today.
Gold edged a little higher, retracing some of its sharp US time zone drop. Oil floated higher.
Regional equities:
- Nikkei +0.90%
- Shanghai -0.43%
- HK +0.06%
- ASX +0.50%
Still to come:
- Preview of the UK CPI for April
- NZD traders heads up - GlobalDairyTrade auction coming up today
