Forex news for Asia trading Tuesday 18 April 2017
- Australian PM Turnbull says he is abolishing 457 visas
- Analyst comments on the RBA April meeting comments: "some significant changes"
- Two new faces at the BOJ (to replace the dissenters)
- AUD selling continues
- French election: "Everyone is petrified"
- RBA April meeting minutes: Rising risks in household debt, housing markets
- China March home prices, All China new home prices +11.3% y/y
- China Q1 GDP better than expected, Barclays raise forecasts for rest of year
- PBOC sets USD/CNY reference rate for today at 6.8849 (vs. yesterday at 6.8785)
- Moody's on Japan: Economic momentum building ... rising exports, expected fiscal support
- USD/JPY & EUR/JPY orders
- EUR/USD orderboard
- AUD and NZD orderboards
- Aso, Pence remarks on trade
- China plans 2 million new units of public housing for 2017 - Xinhua
- China Q1 GDP 6.9% - "easy-money policies" & infrastructure spending created momentum
- A "very challenging task for the PBOC to reduce leverage without having any casualties"
- "Don't Appoint Clones to the Fed"
- More from the FT piece on US Treasury Secretary Mnuchin
- Australia press on the RBA's "significant pivot" last week
- Shadow Brokers hacking group release files questioning safety of forex payments
- More from Fed's Fischer - does not see liquidity issues in US financial markets
- Heads up for NZD traders - Global Dairy Trade auction during London time Tuesday
- Looking for a discount on your next new Harley? Good news.
- More to come from Fed's Fischer - watch the Q&A live
- ICYMI: Forexlive Americas forex news wrap. USDJPY gets a late day boost
- Fed's Fischer: Talk of balance sheet reduction not likely to prompt mkt disturbance
- US Treasury secretary Mnuchin in the FT - comments on the USD
- Trade ideas thread - Tuesday 18 April 2017
- Economic data due from Asia today (and a funny kangaroo video)
Federal Reserve Vice Chair Stanley Fischer spoke during the US evening. Perhaps most noticeably he said it appears to be less likely there will be market disturbance around the discussion of the Federal Reserve reducing the size of its balance sheet than there was in the case of the 'taper tantrum'. Also of note during the session were the comments from US Treasury Secretary Mnuchin on the likelihood of further delays to any tax reforms in the US and also his elaboration on President Trump's comments on the USD last week. Mnuchin's comments hit during the US afternoon but interest in them carried on through the Asia early morning.
More on Fischer and Mnuchin in the bullets, above.
Other news and focus today centred on China house prices (March data; you'll never guess ... higher) and Minutes of the Reserve Bank of Australia April meeting. More on both of these in the bullets above also.
For the currencies, the Australian dollar was a big loser, sliding ahead of the Minutes and a little more after. Buyers were present but all they managed to do was to get filled in, macro names the notable sellers according to market chatter. As I update option-related bids are in good size for now, halting the AUD decline ahead of 0.7550/55 for now at least. A break under 0.7550 should prompt another round of sellers.
USD/JPY ticked above 109.20 early in Tokyo but has since slipped back under 109.00. EUR/USD edged above 1.0650 but with no follow-through and is a few tics under as I update. Awaiting Europe/UK reopening after the Easter break in those centres. Nervousness on French elections is becoming greater.
USD/CHF slipped a few points net on the session (perhaps related to Mnuchin's remarks in the FT on the dollar). Cable is little net changed on the session. NZD/USD ditto, with a GDT auction tonight (previews in bullets above) likely as the next specific driver for it.
Gold is little changed on the day, oil a few cents softer but not a lot in it.
Regional equities:
- Nikkei +0.33%
- Shanghai -0.11%
- HK -0.92%
- ASX -1.17%
