Forex news for Asia trading Monday 19 December 2016
- Moody's says Australia's budget update in line with AAA ratings, stable outlook
- Australian budget update assumes lower prices for iron ore, coal
- All China new home prices (Nov.) +12.6% y/y (prior +12.3%)
- China CASS: Economy to grow at around 6.5% in 2017
- Fitch: Australia budget outlook consistent with AAA ratings despite slight deterioration
- PBOC sets USD/CNY central rate at 6.9312 (vs. yesterday at 6.9508)
- Australia MYEFO - Govmt sees 2016/17 deficit at A$36.5bn
- "Japan November exports show signs of recovery as yen tumbles" - recaps
- NZ: Dec. ANZ business confidence 21.7 (prior 20.5) & activity outlook 39.6 (prior 37.6)
- Japan - Trade Balance (November): Y 152.5bn (expected Y 227.4bn)
- Trade ideas thread - Monday 19 December 2016
- Federal Reserve Chair Yellen is speaking Monday in the US
- Brexit - Scotland proposals for how it can remain in the single market
- Danish Fin Min: Without UK’s contributions remaining EU members have to spend less
- Ukraine nationalises the country's biggest lender
- New Zealand Building Consents (permits) (October): +2.6% m/m (prior +0.2%)
- New Zealand - Services PMI (November): 57.9 (prior 56.3)
- New Zealand - Westpac Consumer Confidence survey for Q4: 113.1 (prior 108.0)
- Early FX rates indications - Monday 19 December 2016
Weekend:
- China to return US drone and accuses the US of "hyping up" the incident
- UK's Fox says any transitional deal with EU should not "diminish" the Brexit vote
- China's vice fin min will take steps to cope with a possible trade war with US
- Italian banks: Monte Paschi will attempt to sell shares next week
- Beijing issues highest possible air pollution alert - cuts & shuts 1200 factories
- Australia: Fin Min suggests budget review will show deterioration in bottom line
Far from dying down in the week prior to Christmas we got off to a decent start (for an Asia time zone at least) today. There was plenty of data from New Zealand, all of it on the strong side (cut it out New Zealand, we get it, OK? Rock star economy and all that) Japan chimed in with beats for the trade balance in November, albeit export growth was still negative (y/y), just not as bad as it was expected to be.
The focus for the session was the mid-year budget update from Australia, which was a mixed bag but was good enough for both Fitch and Moody's to quickly affirm the AAA rating. Over to Standard & Poor's now for their take on it... as I update we are still waiting.
Currencies were active (again, for an Asian session).
USD/JPY slid back, under its US session low to around 117.40 but not sustaining there - its bounced 25-odd points as I update. EUR/USD ticked back toward 1.0470 from a slightly softer beginning (circa 1.0430s the low) while the CHF against the USD also showed a (very) small amount of strength.
AUD/USD weakened ahead of the MYEFO announcement and then, after it, popped a few points. It is sitting little changed on the session as I update now, while NZD/USD is a few points to the better on the session.
Gold is a few dollars higher also, as is oil on the session.
Cable attempted 1.2500 but is back around 1.2475-odd as I update with not a lot of news over the weekend to surprise either way (there are a few points in the bullets above).
The People's Bank of China set the central rate for USD/CNY lower today following the lower USD Friday evening. Note though, the yuan one-month loan rate in Hong Kong climbed to an 11-month high today; liquidity in the yuan is still an issue as we approach year end.
Regional equities:
- Nikkei -0.19%
- Shanghai -0.01%
- HK -0.83%
- ASX +0.73%
Coming up later:
- Federal Reserve Chair Yellen is speaking Monday in the US
More:
- Also in Australia - Woman finds venomous snake wrapped around Christmas tree
