Forex news for Asia trading Monday 22 August 2016
Monday:
- Its Jackson Hole week! Barclays on what to expect
- Goldman Sachs' Moffitt says AUD likely to rally toward 0.8, that’s when its a sell
- Rabobank: Consequences of Fed admitting there'll be no hikes in 2016 year are "shocking"
- (Weather news) Typhoon Mindulle approaching Tokyo
- Japanese PM Abe appears centre-stage in Rio, disguised as Super Mario
- People’s Bank of China sets yuan reference rate at 6.6652 (vs. yesterday at 6.6211)
- RBNZ Governor Wheeler to speak - Tuesday morning NZ time
- Morgan Stanley's weekly outlooks for USD, EUR, JPY, GBP, CHF, AUD, & NZD
- Barclays say unprecedented monetary policy is influencing copper
- Canada fin min: Open to easing foreign investment restrictions on China
- 63% of Japanese firms say government stimulus to have little effect
- BOJ's Kuroda's weekend remarks impacting the yen in the early movements
- Australia politics - Senator wants to upend RBA inflation target
- Trade ideas thread - Monday 22 August 2016
- Monday morning forex prices - early indications 22 August 2016
Weekend
- Iraq to increase oil exports by 5% after Kirkuk deal
- Fed's Fischer: "We are close to our targets"
- UK PM May under more pressure to trigger Article 50 and start Brexit process
- At least 50 dead as suicide-bomber attacks wedding party in Turkey
- Merkel, Hollande and Renzi meet tomorrow to discuss post-Brexit threats to EU
- Italy wants more budget 'flexibility'
- Meet the new Governor of the RBI
- The 5 stupidest words retail traders say
- India names Patel to lead central bank
- BOJ's Kuroda says negative interest rate policy has not reached its limits
- US Election watch: Federal judge rejects request for Clinton to give sworn verbal testimony in email lawsuit
Monday morning in Asia, the thinnest liquidity time of the FX week, started off with some yen weakness and USD strength. The yen was soft after weekend news reports of Bank of Japan Governor Kuroda saying there was a "sufficient chance" for more easing in September (and more, (see bullets above)).
USD/JPY jumped up above 100.85 in the very early morning trade (pre-Tokyo ... pre everywhere really) and then slowly drifted back down to pretty much 'fill the gap', finding buyers shuffling back in to hold it around 100.30 and propel it back around 100.75 as I update. Yen crosses followed a similar pattern.
The USD, meanwhile, was also mildly supported by another weekend report, this time of Federal Reserve Vice Chairman Stanley Fischer saying a 2016 rate increase is still being considered. Fischer hasn't been heard from in a while, and as #2 at the bank his comments tend to carry weight - eyes (and ears) now turn to Jackson Hole, where Federal Reserve head honcho Janet Yellen speaks later this week at the global central banker symposium.
EUR/USD and CHF/USD both lost some ground, as did cable.
AUD and NZD both jumped lower early, retraced a 'gap' fill and then came off again. Both are near session lows and thereabouts as I update. Macro and hedge funds said to be the sellers (following on from Friday when they were also the sellers).
Weekend oil news centred on Iraq (Iraq is OPEC's second-biggest producer) saying it will boost oil exports as soon as the next few days, despite the glut of supply.
For the day here, gold traded lower, but silver really got hit hard.
In China, today's yuan fix was the largest one-day weakening in the USD/CNY mid point reference rate setting since the Brexit vote result.
Regional equities:
- Nikkei +0.18%
- Shanghai -0.63%
- HK -0.48%
- ASX +0.13%
Still to come: RBNZ Governor Wheeler to speak - Tuesday morning NZ time
More:
- Italy elections in 2018 whatever the referendum outcome: Renzi
- And while we await Europe/UK markets to fire up for the week, this is worth reading from the Bank of Japan: Recent Trends in Foreign Exchange (FX) Margin Trading in Japan
