Forex news for Asia trading Thursday 2 June 2016
- S&P says Japan sales tax announcement lifts uncertainty on timing
- PBOC SAFE head - China faces problem of high leverage levels for companies
- BOJ's Sato: Japan economy likely to avert recession
- Australia April trade balance: Deficit of 1,579mln (expected deficit 2100mln)
- Australia Retail Sales for April: +0.2% m/m (expected +0.3%)
- PBOC sets USD/CNY mid-point today at 6.5688 (vs. yesterday at 6.5889)
- RBNZ meet June 9 - Westpac tip an on hold decision (then cut in August)
- BOJ to write off government debt? Will it happen in 2 years time?
- AUD and NZD orderboards
- Aussies love Volvos, IKEA and ABBA. And Riksbank monetary policy.
- 3 things to expect from the European Central Bank meeting
- Trade ideas thread - Thursday 02 June 2016
- Oil - American Petroleum Institute (API) inventory data: BUILD of 2.35 million barrels
- Iran oil output to hit 4 million bpd 'very soon' - oil minister. Says quotas unlikely
- UAE oil minister says he hasn't heard about an OPEC output target plan
A very quiet start for Asia today, with little movement from the US close through the early NZ and Australian mornings. ECB and OPEC meetings coming up in Vienna Thursday may have kept a lid on movement, except for oil where a surprise crude inventory build reported by American Petroleum Institute late in the US afternoon saw prices dip.
As Tokyo opened the yen strengthened along with a lower Nikkei. We saw some stabilisation above 109.25, but it didn't last and by mid morning we were testing below 109.00. Comments from BOJ board member Sato took it under 109 further.
Meanwhile EUR and CHF showed some strength also, EUR/USD traded above 1.1200 (EUR/JPY was lower, as were most yen crosses, yen strength the factor here mainly). Cable edged slightly higher, not much in it.
AUD popped higher on a big beat on trade data and a miss on retail sales. The pop was not sustained, though, rejecting above 0.7265 and soon thereafter making new session lows. NZD/USD followed a similar pattern, a session high above 0.6830 followed by a fresh low for the session. The kiwi managed a bit of a bounce though, while AUD slipped further.
Gold eked out a few dollars in gains, oil didn't do a huge amount after its earlier fall.
Comments from China's vice finance minister today on enhanced policy cooperation between China and the US had little impact but will be something to keep on eye on.
Regional equities:
- Nikkei -2.20%
- Shanghai -0.22%
- HK -0.02%
- ASX -0.74%
Still to come: Oh, Vienna ... ECB and OPEC meetings there today
