Forex news for Asia trading Friday 27 May 2016
- Poll finds Japan fund managers sold Japan stocks, bought US
- Moody's on NZ: Budget projections are credit positive for government
- China’s government still has room to borrow more - Ministry of Finance
- Japan chief cabinet secretary Suga: Abe to make appropriate decision ...
- Japan Abe set to delay sales tax hike, meet with Aso to discuss - govt sources
- China Industrial profits for April: 4.2% y/y (prior was +11.1% y/y)
- People’s Bank of China sets yuan reference rate at 6.5490 (vs. yesterday at 6.5552)
- G7 on FX - Confirm commitment to market determined FX rates
- G7 leaders say downside risks growing for global economy
- China urges cautious use of trade protection measures: MofCom
- Today's Japan CPI report - to Intensify pressure on BOJ for more monetary stimulus?
- BoA / ML on the Fed: June, nah. July, nah. September, yep.
- Japan April headline CPI: -0.3% y/y (expected -0.4%)
- More from Gundlach: If Fed raises rates the USD will weaken
- Fitch on Aussie banks - Expects soft profit growth in 2016
- UK data - GfK consumer confidence for May -1 (prior -3)
- Japan firms increasingly pessimistic about the country's ability to beat deflation
- Gundlach says he expects Yellen to be dovish when she speaks next week
- China data coming up today - Industrial profits for April
- Trade ideas thread - Friday 27 May 2016
- More from NZ's English: In talks with RBNZ for an MOU on new tools
- Asia checklist: Abe to delay sales tax: tick; Latest Brexit poll, ti... No, wait
- New Zealand finance minister English: NZ economy doesn't need stimulating
The G7 summiteers (sorta Mouseketeers for grown ups) issued their Communique today ... there is more in the bullets, above, and the full text is here. They say they are now 'committed to structural reform to boost growth, productivity and potential output'. Well, great. Let's see some action then.
We also got data on industrial profits (April) from China today, which grew at a slower rate than in March. State-owned firms were a big drag on profit growth (see bullets above).
The data of most focus, though, was Japanese CPI (April national and Tokyo May) which is still way, way off the BOJ target and immediately rekindled talk of more action to come from the BOJ.
USD/JPY gained a little ground in the hours following the CPI release, though the range was not a large one; it fell short of popping through 110.00 again. EUR/JPY tested around 123 (while EUR/USD did little on the session, off a few points only). CHF and GBP are both little changed.
Pretty much for the same for AUD and NZD too, small ranges and barely changed for the day.
Gold was a mover, dropping >$10, while oil ticked a few cents lower after it had tested the $50 level in the overnight.
Regional equities:
- Nikkei +0.53%
- Shanghai -0.30%
- HK -0.30%
- ASX +0.57%
Still to come: I've seen references to a "key Yellen speech tonight". I'm gonna pour some cold water on that one. Yellen is at Harvard, in what is billed as "a conversation about her groundbreaking achievements" ... so I don't think its the sort of forum where she will be saying too much about her economic nor monetary policy outlook. I really hope I am wrong, but I think we won't be getting too much to move the market out of this. Its scheduled at 1715GMT though if you wanna hang in there.
The bad news is Mike is away today so you'll be getting Ryan on this morning. He is such a grump in the morning.
Anyway, I'm gonna post this to try to cheer him up. He is ALWAYS on at me to post more Bucks Fizz - he just LOVES them.
