Forex news for Asia trading Wednesday 27 April 2016
- Analyst responses to shock low inflation result in Australia today
- Westpac MNI China Consumer Sentiment Indicator (April): -0.3% m/m
- BoA/ML BOJ preview - Can Japan get its mojo back?
- Here's why the RBA will not cut rates despite today's shock low inflation result
- RBA rate meeting next week - chance of a cut surges after low CPI
- DB's LaVorgna on the FOMC & economy: Certainly not a recession, not a boom either
- China Industrial profits for March: +11.1% y/y (prior -4.7%
- Australian Q1 Headline inflation: -0.2% q/q (expected +0.2%)
- PBOC yuan reference rate today at 6.4837 (vs. yesterday's yo-yo at 6.4882)
- The Donald, the Hillary projected to win Delaware
- Reserve Bank of New Zealand interest rate announcement - preview
- US election - primary results coming in. Trump & Clinton the winners
- Soros is wrong to expect a China crash - its already happened
- Oil - JP Morgan updates its price forecasts ... higher
- Australian data - ANZ / Roy Morgan Weekly Consumer Confidence: 111.7 (prior 115.8)
- Trade ideas thread - Wednesday 27 April 2016
- Apple: Revenue, earnings miss. iPhone sales drop.
- NZ March trade balance: 117m (expected +401m)
- Janet Yellen, not only "Master of the Universe", also "Stabilizer of the Yuan"
- IMF warns on China’s debt-laden “zombie” companies
- Oil - American Petroleum Institute (API) data - Inventory DRAW of 1.1mln barrels
- Apple results: EPS $1.90 ($2 expected)
Oil an early mover today (or late US, depending on your perspective) - API weekly data showed a surprise draw in inventory (a build was expected); oil prices up after the release and managing to sustain their gains here during the session.
Apple earnings were out late US time also, a miss (see bullets above).
A very low inflation result today for Q1 in Australia (we only get CPI data once a quarter here in the land down under) sent the AUD tumbling lower. Expectations for a near-term interest rate cut from the Reserve Bank of Australia have surged (the next meeting is May 3).
The initial markdown was around 80 points, but there was virtually no bounce. It stabilised for an hour or so around 0.7660 but then slipped once again to be on session lows (down about 130 points from session highs) as I update.
NZD went along for a bit of the ride with the AUD today, its down around 40 points on the session high. Earlier data from NZ (a miss on trade balance data) saw it have a small wiggle without too much net impact.
USD/JPY weakened throughout, down around 30-odd points to be sitting above 111.00 as I write. There was little in the way of fresh news - we have the BOJ announcement coming up tomorrow during Asia time.
EUR/USD edged slightly higher, while USD/CHF is little changed.
Gold is a few dollars better bid.
Regional equities:
- Nikkei -0.37%
- Shanghai +0.03%
- HK -0.29%
- ASX +0.51%
Still to come: FOMC day today! And its RBNZ day early NZ time on Thursday.
