Forex and Bitcoin news for Asia trading Monday 26 March 2018
USD/JPY got a rattle with a move under 104.60 (around 104.56) in very, very early trade as New Zealand markets got underway. This opening on Monday is, of course, the absolute thinnest time of the forex week and wide-spread, uber-thin liquidity movement can exacerbate movement on any amounts going through. Stop loss selling under Friday's low (circa 104.64) were behind the quick dip.
Next cab off the rank in the early morning was the news out of the Reserve Bank of New Zealand of a fresh Policy Target Agreement with the government, now with an added employment mandate and monetary policy soon to be set by committee decision making (instead of the current arrangement where its officially the sole responsibility of the Governor ... but in practice neither this or the new PTA is not too much change):
- RBNZ new Policy Target Agreement announced: inflation band unchanged, jobs goal added
- New RBNZ Gov Orr speaking: Pleased new agreement firm focus on price stability
Following this NZ news we got, well more NZ news - this time a surprise trade surplus:
Or, should I say, a stink-bug influenced trade surplus (not kidding):
Expect the trade figures for March to show higher imports as the treated cars finally land on (hopefully stink-free) NZ shores.
NZD/USD a big winner today, approaching resistance as I update:
As the morning in Asia progressed the NZD traded higher, as did the Australian dollar. AUD/JPY bids were notable, Tokyo names the buyers.
Cable was also a performer, gathering 30+ points in the week's opening session without much in the way of UK specific news of importance. EUR/USD was also on the up, reflecting the weaker USD nearly across the board. EUR/USD managed a pop above its Friday (circa) 1.2370 high, trading just shy of 1.2380 on a brief stop-loss spike before coming back just as quickly. Weekend news of relevance for the euro included some Italian politics as the country edges a little closer to getting the formation of a new government after the hung parliament outcome of the March 4 election.
and also developments in Spain, the country's Catalan leader was arrested (see link below)
For the oil traders the week opened higher with missile attacks in Saudi Arabia supporting the price.
- Reports of sounds of loud explosions in Riyadh, Saudi Arabia
- Saudis confirm missile fired into country
The oil price has since come back, though.
Of course, there was plenty on the trade war news front:
- Former China govt minister says may adds tariffs on US computer chips and airplanes
- US-China trade war opens the door for Australian exports
- WSJ reports the US and China are in discussions over Chinese market access
- Trade wars - Mnuchin said expects to sign 'win-win' deal soon with South Korea
- Former Chinese fin min on what China should do target next in the trade war
More headlines:
- Goldman Sachs estimate new foreign-investor flows of up to $250bn into China bond market
- PBOC sets USD/ CNY reference rate for today at 6.3193 (vs. Friday at 6.3272)
- Trade ideas thread - Monday 26 March 2018
- M6.5 earthquake off the coast of Indonesia
- Monday morning FX - 26 March 2018 - foreign exchange prices, early indications
Weekend news:
- Catalan separatist leader Puigdemont arrested in Germany
- Could tax reform be behind the libor mystery?
- SF Fed President John Williams said to be front-runner to take over NY Fed
- Video: It's all about China
Still to come:
- BOJ Governor Kuroda to appear in Japan parliament again today (from 0655GMT)
- FX option expiries to be aware of coming up Monday 26 March 2018 (1400GMT)
- & More option expiries to note (these for mid-week)
And finally, some bank outlooks for the coming week (& beyond):
