Forex news for Asia trading Monday 29 February 2016
Stock markets in China sold off hard today, with commentators citing a lack of agreement on specific stimulus measures at the G20 over the weekend. I am not sure when it became necessary for reasons to be found to slam Chinese stocks, but there you go.
- China's vice fin min says to intensify fiscal policies
- Japan Vehicle Production for January -5.8% y/y (previous -2.3%)
- EUR/USD technical analysis from Barclays - 'bearish view'
- RBA expected to remain on hold Tuesday ... but to cut soon after
- And the Oscar for worst share market ... China stocks not having a good day
- Takeaways from Japan’s Production, Retail Sales data
- People’s Bank of China (PBOC) sets yuan reference rate at 6.5452
- PBOC inject 230bn yuan through OMOs today
- NZ Treasury's Monthly Economic Indicators
- Japan PM Abe: Policies don't directly target FX
- Australia - Q4 Inventories -0.4% q/q (+0.1% expected) & Company profits -2.8% q/q (-1.8%)
- SocGen looking for a lower EUR/USD, GBP/USD, but not so much for USD/JPY
- Australia - Melbourne Institute Inflation Gauge (Feb.): -0.2% m/m (priors 0.4%)
- Japan January Retail sales: -1.1% m/m (expected +0.1%)
- Japan January (preliminary) Industrial Production: +3.7% m/m (expected +3.2)
- (ex) BoE's King:"Only way" for some countries eco growth is to leave the euro
- ANZ changed their call on RBNZ rate cuts. Here's their NZD call now.
- Greece ex-fin min says Brexit would cause ruptures in EU
- New Zealand data - Building Consents (January): -8.2% m/m (prior +2.3%)
- NZ data - ANZ February Business Confidence: 7.1 (prior 23.0)
- Australia - Gold production hit a 12-year-high in 2015
- Trade ideas thread to start the fresh week - Monday 29 February 2016
- G20's recycling initiative: Let's rehash previous statements!
- ECB's Villeroy says deflation is the main danger facing the euro zone,
- There are some real characters in the forex world
- Monday morning FX - 29 February 2016 - foreign exchange prices, early indications
Weekend:
- The Bank of England's King:"Without reform ... another crisis is certain"
- Ireland election - latest victim of voters' antipathy to mainstream politics?
- Will Venezuela avoid oil default with new gold mining venture?
- SNB's Jordan: Negative rate exemption threshold is a possible policy tool
- The Secret Law That Governs The Markets
- G20: Communique has monetary policy, Brexit and refugee crisis on the warning list
- G20: Dijsselbloem says G20 nations agree to warn each other of devaluation policies
- G20: Lou says deepening structural reforms is the fundamental way to deal with global economic challenges
- G20: Schaeuble says there are limited possibilities for monetary policy to help growth
- It's Getting Harder for Currency Traders to Make Money, Market Veteran Says
NZ data opened up the movements for the week, with ANZ Business Confidence and Activity Outlook indicators both falling heavily, and then Building Permits a few minutes later also coming in much worse.
NZD/USD moved lower on the data releases, fropping from around 0.6630 and thereabouts to under the figure and further towards 0.6570.
Any bounce (what little we had) was sold into and the NZD is only a little above session lows as I update.
Poor data continued, next from Japan where Retail Sales missed expectations badly, Preliminary Industrial Production results for January came in better but the near term outlook showed it was expected to worsen sharply.
From Australia we then got Q4 Inventories and Company Profits. Both missing estimates. Profit misses were widespread across industry, it wasn;t just mining businesses, with retail and wholesale profits also off.
We get Q4 GDP data on Wednesday, the results today are likely to weigh on an already low expectation of +0.5% q/q, although export data tomorrow is another input being awaited. While I'm on Australia, the RBA March monetary policy meeting is tomorrow (Tuesday Australian time, announcement due at 0330GMT, no rate change expected).
As mentioned above, Chinese stocks fell away again today. The yen duly strengthened, with USD/JPY falling from highs close to 114 early in the day to under 113.30 as I update.
AUD/USD is little changed on the session, crawling off its lows to be near 0.7140 as I post.
EUR, CHF, GBP all had small range, little changed sessions.
Gold and oil, more or less ditto.
Regional equities:
- Nikkei +0.18%
- Shanghai -3.39%
- HK -0.95%
- ASX 0.14%
More:
