Forex news for Asia trading Thursday 20 October 2016
- UBS on China, yuan: Expect 6.5 to 6.6% GDP growth in Q4, USD/CNY to 6.8
- Eastern Japan earthquake, M5.3
- Trump or Clinton. Who won the 3rd debate?
- Debate nearly over ... MXN little changed
- Australian employment data - big miss. But what will the CPI do? Preview
- Yen is today's bad hombre, USD/JPY higher in Tokyo
- US presidential debate - how's the MXN responding? (Chart)
- PBOC sets USD/CNY mid-point today at 6.7311 (vs. yesterday at 6.7326)
- Australian employment report - responses
- AUD dropped after jobs report - moving lower still
- Australia Employment change (Sep.): -9.8K (expected +15K)
- Fed's Dudley: Yellen's comments reflect the consensus of the FOMC
- How the US would vote if it was only Australians voting
- Merkel, Hollande comments on Syria, Russia, Mosul
- UK press (guess who?): The risk of a US recession next year is rising fast
- FT reports on Rio Tinto cutting its 2016 iron ore shipment guidance
- How one Goldman Sachs trader made $100mln (spoiler: buy low, sell high)
- Japan press: BOJ to take action sparingly, to preserve ammunition
- Brexit - defaults on unsecured consumer loans, sharpest jump since Q2 of 2009
- Trade ideas thread - Thursday 20 October 2016
- Brazil's central bank cuts benchmark rate by 25 bps, to 14%
- BOC Poloz: Cad economy had difficult Q2, set to rebound in H2
We had the September employment report from Australia today followed by the final of the three US presidential debates. Apart from that news flow was light.
The Australian dollar edged higher towards the employment report release but dropped quickly when a big headline miss on 'Employment change' was unveiled, -9.3K against median consensus of +15K. It was softened somewhat by an unemployment rate also below expectations and unchanged on the month. Which in turn was muddied by a big drop in participation (64.5% from an expected 64.8 and a prior of 64.7).
AUD/USD dropped from around 0.7725 to under 0.7700, spent a few minutes chopping in a small range before slipping further and its under 0.7690 as I update. Just as doubts were raised after big employment gains in the past, doubts were raised on big employment losses on today's figures, the -53K for full time jobs in the month result in particular was greeted with questions.
Regardless, the report was on balance a disappointing one.
The 3rd debate was the bigger global event. USD/MXN edged slightly higher during the debate but as soon as it ended it dropped away. CNN polling gave the debate to Clinton 52 to 39 (the Drudge poll gave it to Trump by a bigger margin, funny that ;-) )
Elsewhere in the currencies, NZD embarrassed its neighbour today by remaining relatively well bid. Its off its highs but hasn't lost ground like the AUD did, being within 10-odd points of its high as I update.
USD/JPY edged higher, from under 103.40 to nudging above 103.65 and is around 103.60 as I update. An M5.3 earthquake in eastern Japan today appears to have caused little damage, no tsunami alert issued.
EUR, too, a tight range and a little higher against the USD. CHF is more or less unchanged.
Cable did little today, edging higher and not much of a range for it either.
Gold is higher, and oil maintained it US market highs more or less.
Regional equities:
- Nikkei +1.15%
- Shanghai -0.09%
- HK +0.67%
- ASX +0.21%
More:
- OPEC Price War Offers Meager Rewards as Shale Learns to Survive
- Yuan Slides Closer to Crisis Peg as Watchers Predict Bumpy Ride
- Australia Housing Boom Peak Has Passed, Morgan Stanley Says
- Bathrooms in all Trump buildings & resorts to be renamed 'Bad Hombres' and 'Nasty Women' (thanks to @GeorgeTakei)
