Forex news for Asia trading Tuesday 26 April 2016
- Ex-PBOC adviser: China's economy yet to hit bottom of the U-turn
- Quickie from ANZ: AUD/USD: Marking Time Into FOMC; AUD/NZD: Higher Into RBNZ
- Poll: Who do you think should get the job as new RBA Governor?
- PBOC sets USD/CNY central rate at 6.4882 (vs. yesterday at 6.5120)
- Abe aide Honda says possible BOJ acts this week
- Drip, drip, drip comes the Japan extra budget news
- Looking for an RBA easing? Come back in October says HFE
- RBNZ 'shadow board' recommends rates be left on hold this week
- US regulators to call for banks to have a year’s worth of liquidity
- Just the thing for traders! A smartphone with 'military grade' security
- SWIFT hacked - more on the "cyber incidents" at FX settlements firm
- Comments on oil - Goldman Sachs, Morgan Stanley, Barclays ... all bears
- Capital flight from China this year estimated around $538bn
- The Tuesday trade ideas corner
- China bond defaults - another one bites the dust
- FOMC outlook - El-Erian expects this week they'll set up a June hike
- Forex video: BNP Paribas likes "Anacott Steel" (well...they really like EURJPY)
NZD was a (relatively) strong performer on the session, with NZD/USD up 40+ points on overnight lows. AUD/NZD sellers were cited as a key factor behind the stronger NZD, which may have been the case but if so then the stability of AUD/USD points to buyers in that pair (AUD/USD is up small on the session). This while commodities were a little softer, Dalian iron ore down 4+% on the day.
USD/JPY, meanwhile, was a choppy performer, down under 111.00 early before a bounce back above 111.20 and only to fall to fresh session lows below (briefly) 110.90 as the Tokyo morning progressed. The Nikkei has been a little softer on the session so far, not helping USD/JPY. There is little clarity on the market on what the BOJ may or may not do at their meeting this week - key Abe advisor Etsuro Honda says the bank probably won't ease further, but possibly will ... and while such statements are consistent with each other they don't contribute much to divining the bank's intentions. Maybe that's their plan, who knows with BOJ, & maybe they are clueless themselves.
Complementing the BOJ headlines were those concerning Japan budget, which is being touted as disaster relief, not extra stimulus.
EUR/USD tread water today, barely changed on little activity, same for USD/CHF.
Cable edged slowly but consistently higher, with not a big range.
Gold is barely changed (chew on this, while smiling), not much for oil either.
Regional equities:
- Nikkei -1.29%
- Shanghai -0.28%
- HK -0.88%
- ASX -0.30%
