Forex news for Asia trading Thursday 17 November 2016
- Westpac on the Australian jobs report today - "an extended weakening"
- Fitch says China's steel exports to remain high next year
- China allows coal mines to ramp up output
- NZ traders - Stats NZ will be publishing revised release calendar on Friday
- (Bit slow to this, but ...) Largest oil deposit ever found in America discovered in Texas
- Analyst responses to the Australian employment report earlier
- China FDI January - October: +4.2% y/y (CNY terms)
- BOJ's Kuroda: Cannot comment on US economic policies, details not clear yet
- BOJ offers to buy unlmtd amt of JGBs (1 to 3yr maturity, yield 0.02% above prior close)
- PBOC sets USD/CNY mid-point today at 6.8692 (vs. yesterday at 6.8592)
- Australia Oct. jobs report: Employment +9.8K (expected +15K)
- More again from Fed's Harker: Supports a 25bp hike in Fed Funds rate
- Trump's 'infrastructure bank' - to be funded by a $275 billion tax increase
- More from Fed's Harker - We have to take into account lots of risks to economy
- China press on the yuan - unlikely to fall sharply for long
- Japan Cabinet adviser wants extra fiscal stimulus next year
- Fed's Harker: Unemployment rate is right on the Fed's target
- Japan PM Abe in the news - told not to believe campaign lies
- Trade ideas thread - Thursday 17 November 2016
- 5 things to watch in Janet Yellen’s testimony Thursday
- Fed's Kashkari: Fed should be willing to tolerate 2.5% inflation
- NZ job ads for October: +0.6% (prior +0.3%)
- Too early to start talking about 2017 risks? The biggest for the euro is politics
- Philippines Q3 GDP up 7.1% y/y and +1.2% q/q. Both exceeding expectations (+6.7 and +1.1, Q2 was +7 and +2.1).
The Bank of Japan offered to buy unlimited amounts of JGBs of specific maturities today, implementing their yield curve control policy for the first time since its announcement back in September (see bullets above for more details).
The FX impact was an immediate weakening in the yen, with USD/JPY shooting higher (by around 60+ points from session lows near 108.60) before dropping back a little. Its around 109 and thereabouts as I update. Prior to the BOJ operation USD/JPY had steadily lost ground, down from circa 109.10 or so in early Sydney time. Ten-year JGB yields had turned positive this week; BOJ Governor Kuroda says he wants to keep them around zero ... hence today's activity.
The yen moves were the sharpest today, but we did get some movement elsewhere also.
EUR/USD ticked higher earlier, up from circa- 1.0680 early in the timezone to around 1.0710, and settling below the figure as I update. USD/CHF is a touch lower, as is cable (though its showing some, tiny, bounce as I update).
NZD/USD was a steady gainer, up around 30 points from early lows and close to session highs as I update. AUD/NZD was a loser today, with AUD/USD showing little net change on the session. It was jobs report day for Australia, and despite the headline showing a positive employment change and a lower unemployment rate on the month it was a poor report. The Australian Bureau of Statistics, which produces the report, consistently tell us to look at the 'trend' data (its the seasonally adjusted data that hits the headlines). There is more detail in the bullets, above, but in brief ... "trend employment decreased by 1,000 persons, the first decrease in the trend series since November 2013".
The People's Bank of China weakened the CNY mid point against the USD today for the 10th consecutive session.
OK, I know that this far down the page I've lost most people, so I'll slip this in where no-one will see it and get cross with me.
This is getting some play in China ... :-D
Meet the pheasant-elect: Bird sporting 'Donald Trump's hairstyle' soars to internet fame
