Forex and Bitcoin news for Asia trading Thursday 28 June 2018
RBNZ:
- The 3 reasons the RBNZ statement was bearish for the NZD
- Responses to RBNZ - banks shifting expectations of the next interest rate move ... later
- Responses to the RBNZ coming in ... risk next rate move is a cut
- RBNZ monetary policy decision, on hold as expected
The NZ dollar is a little lower on the session here. This follows the RBNZ monetary policy announcement of cash rates left on hold. The one-page accompanying statement was neutral but tilted just ever so slightly a little more dovish. The Australian dollar is up a few tics on the session, AUD/NZD buying a bit of a driver for the day.
Elsewhere:
- Recap of the Japanese data earlier today - retail sales slowest in seven months
- China Comm Min on trade issues - carefully monitoring US policies
- USD/CNY continued its big surge again today - some thoughts on where to next
- What is driving EUR/USD, how its changed & where to now
- PBOC sets USD/ CNY reference rate for today at 6.5960 (vs. yesterday at 6.5569)
- Australian fin min Cormann says the govt defers plan to lower corporate tax rates
- China - CASS researcher nominates the level for USD/CNY that will worry the PBOC
- North and South Korea to hold talks on connecting cross-border roads today
- Japanese investors show stronger expectations for yen decline
- German interior minister says he is very optimistic on solving coalition dispute
- Audio recap: Wednesday's sea of red
- Trade ideas thread - Thursday 28 June 2018
USD/JPY dropped a few points, back to circa 110.00 before back around 110.20.
A focus today was the PBOC reference rate setting for USD/CNY, with another large devaluation for the onshore yuan, though not quite so large as was expected. It brings USD/CNY to its highest since December 20 of 2017 and prompts continued concern about trade war developments.
Expectations are now for the CNY to stabilise somewhat, but the workings of the People's Bank of China in rate setting are not transparent so any forecasts must bear that in mind and not be too dogmatic. Simmering trade tensions add to the uncertainty.
EUR, CHF, GBP, gold, CAD - all little changed on the session
CAD swung around in the American afternoon on Poloz remarks, check these out from earlier:
- Bank responses to the BoC Governor Poloz speech, Q&A, press conference
- BOC's Poloz: 'Financial markets understood our message' from May
- USDCAD swings lower and back higher on Poloz comments.
- Poloz Q&A: Canada always has its head in the oven and it's feet in the freezer
- More Poloz to come, press conference coming up
- Poloz: Our underlying narrative appears to be correct
Still to come:
- Heads up for the EU leaders' summit beginning today
- Heads up for large FX option expiries on Thursday 28 June 2018
- Large EUR/USD forex options expiring Friday
This to print, attach to the frudge:
