Forex news for Asia trading Tuesday 19 April 2016
- Shinsei Bank's Takako Masai set to join Bank of Japan board
- The RBA "minutes have set the scene for next week's inflation data"
- Bank of Korea revised GDP & inflation forecasts
- Australian PM Turnbull says election likely on July 2
- RBA minutes (April): Higher AUD could complicate economy rebalance
- People’s Bank of China sets yuan reference rate at 6.4700 (vs. yesterday at 6.4787)
- Bank of Korea leaves rates unchanged
- Heads up for NZD traders - dairy auction due during London time today
- Japan finance minister Aso: Declines to comment on FX, and then ... comments on FX
- Fed's Rosengren (more): We are starting to see wages pick up in some markets
- Australian data - ANZ / Roy Morgan Weekly Consumer Confidence: 115.8 (prior 112.0)
- Fed's Rosengren: Sees more rate hikes than predicted by 'pessimistic' investors
- Citi says iron ore rally to fade as oversupply kicks in
- Rio Tinto cuts iron ore guidance for 2017
- Ex-BOJ's Shirai in the Japanese press - says shouldn't be additional easing
- NZ Services PMI for March: 54.8 (prior 56.9)
- PIMCO on the BOJ: Decent chance of further easing measures in April
- RBI head says intervention remains a tool
- China delayed release of GDP numbers that show growth was slower
- Doha drongos not alone in failing - steel producers meeting unable to curb excess capacity
- Ex-BOJ Hayakawa says bank to remain on hold this month
- Its the Tuesday trade ideas thread - 19 April 2016
USD/JPY showed early strength during the session. There wasn't much in the way of news to prompt the move and indeed its had a small range only, consolidating above 109.00 as I update. The Nikkei had a very strong morning, its up more than 3% as I write.
Yen crosses managed higher as well, EUR, CHF, GBP, AUD and NZD all stronger on the day (vs. the USD as well as yen).
Note now, USD/JPY sell orders are stacked from 109.50 to 109.80, and also there are said to be $4bn-odd of barrier options at 110.00 and thereabouts
There was a good amount of central bank activity during the session today, with comments from a newly-hawkish Boston fed head Eric Rosengren. The Bank of Korea left its benchmark rate unchanged and later lowered its forecasts for 2016 GDP and inflation.
RBA Minutes (of the April meeting) were published, the bank describing policy as 'very' accommodative, indicating, to me at least, that the RBA will not easing further any time soon and may indeed shift to more neutral soon.
There is still a bit to come from the Reserve Bank of Australia today, with Governor Stevens Stevens speaking during NY time (1330GMT) on Tuesday. Note, though, the text of his speech will be released earlier, due at 1200GMT.
With 'risk' in favour here in Asia today gold was a touch down on the session (and ... as I post, and just to make a liar out me, gold has jumped back to be more or less unchanged on the session now.
Regional equities:
- Nikkei +3.16%
- Shanghai +0.05%
- HK +0.50%
- ASX +0.96%
