Forex news for Asia trading Wednesday 26 April 2017
- More responses to the Australian Q1 inflation data
- New Zealand credit card spending for March +0.8% m/m (prior -1.4%)
- A cheerful note from the Japan press: BOJ has Japan's economy right where it wants it
- More analyst responses to the Australian inflation data
- Goldman Sachs on the Australian CPI
- Q1 Australia headline inflation: 0.5% q/q (expected 0.6%)
- PBOC sets USD/CNY central rate at 6.8845 (vs. yesterday at 6.8833)
- USD/JPY & EUR/JPY orders
- Some Trump tax plan headlines crossing
- EUR/USD orderboard
- AUD and NZD orderboards
- Ahead of the Aussie CPI - a look back at the good old days (last week's huge NZ CPI!)
- Canada PM Trudeau told Trump he wants a negotiation on softwood
- More on "Trump's Tax Plan Said to Seek 10% Levy on Offshore Earnings"
- US Ross: Trump Administration Mulls More Trade Actions
- Australia data - ANZ-Roy Morgan weekly consumer confidence: 111.2 (prior 112.6)
- Trump plan to tax repatriation of corp. foreign earnings at 10%
- HSBC EUR/USD & USD/JPY forecasts
- IMF forecasts, if borne out, should guarantee Australia retains AAA credit rating
- ICYMI - Australia inflation data due today, here are 5 previews
- OIL - Trump Said to Order Review of Oil Drilling Off California Coast
- Why U.S.-Canadian Trade Relations Soured
- More on BOJ's Iwata says conducting simulation on exit strategy from stimulus
- BOJ meet today & tomorrow (announcement tomorrow, d'uh :-D ) - preview ICYMI
- Trade ideas thread - Wednesday 26 April 2017
- Brexit news: UK press report Britain may have to contribute to EU budget until 2020
- US press reports Trump admin. has dropped any support for border adjustment tax
- OIL - Private inventory data shows surprise build in headline crude stock
- Economic data due from Asia today - Australian inflation data day
- David Einhorn bails on some shorts after tough quarter
- ICYMI: ForexLive Americas FX news wrap: Yen crosses jump. CAD hits 14-month low
Oil price movement first up today, late US afternoon data from the private inventory survey (the official survey is due Wednesday morning US time) showing a surprise build in inventory. Oil fell on the data and then a little more but has recovered somewhat during Asia.
Then it looked like a wait for the next focal point of the day, the Australian inflation data (Q1 2017 - we get official inflation figures only once a quarter in Australia). But, any plans for having a snooze ahead of those was quickly dispelled, with plenty of US political action. These are all in the bullets above, but to save you a scroll:
- US press reports Trump admin. has dropped any support for border adjustment tax
- Trump plan to tax repatriation of corp. foreign earnings at 10%
- More on "Trump's Tax Plan Said to Seek 10% Levy on Offshore Earnings"
These all referring to the tax plan expected to be announced Wednesday (US time),
More (again, in the bullets above, but spare the keyboard arrows):
- President Donald Trump's tax plan to be released on Wednesday will slash tax on repatriating corporate profits earned overseas to 10 percent ... will cut top tax rate on pass-through businesses to 15 percent from 39.6 percent ... will not include "border-adjustment tax" on imports from House Republican tax proposal - administration official
While the repatriation headline was read as USD positive (some doubters about though) the response was not as expected, the USD continuing higher. This is Asia, though, so the range was not great.
EUR/USD topped out on the session well before its overnight (i.e. Europe/US time) high and has stabilised circa 1.0940, so not too far from that high. USD/CHF is little changed, down a few tics on the session only. Cable, also little change and reaching an Asia time peak lower than its overnight also.
USD/JPY clawed its way higher though, along with yen crosses. There was little in the ways of news nor data, but do come back tomorrow for the Bank of Japan meeting conclusion, announcement and latest Outlook report. Previews:
- BOJ meets this week - preview(s)
- Japan press: BOJ has Japan's economy right where it wants it
AUD was a loser on the day. The first of the official 2017 inflation reports dropped from the Australian Bureau of Statistics today, coming in showing headline inflation back into the RBA target band while 'core' inflation measures were a little higher but still falling short of the target band. It's the core measures the Reserve Bank of Australia is most interested in and while these were better (i.e. 'better' in the sense of closer to target for the RBA) the outlook ahead is likely for flat around these levels if not a little lower. I've more of my thoughts here in the data post:
- Q1 Australia headline inflation: 0.5% q/q (expected 0.6%)
And bank analysts responses followed:
- More analyst responses to the Australian inflation data
- Goldman Sachs on the Australian CPI
- More responses to the Australian Q1 inflation data
AUD/USD spiked a few points in the moments leading up to the data release but dropped once the data hit the wires, following on a little lower toward 0.7500 (not getting there though) before stabilising somewhat as I update around 0.7515 or so.
NZD/USD lost a few points alongside the AUD, touching under 0.6920 and its just over that point now as I write.
I should mention the CAD also - it didn't have much movement but comments today from Canadian PM Trudeau indicate more to come on the timber issue, and other trade matters between the two north Americans.
Regional equities:
- Nikkei +0.74%
- Shanghai +0.36%
- HK +0.53%
- ASX +0.63%
