Forex news for Asia trading Wednesday 3 May 2017
- Fitch: Housing Slump & Eurozone Key Australian Investor Concerns
- Moody's has changed the ratings outlook of BHP Billiton
- Brexit: Australian insurance group to shift European business from UK to the continent
- USD/JPY Trump tweet traders - don't fade the Donald
- RBA May 2017 'Chart Pack' available now
- PBOC sets USD/CNY reference rate for today at 6.8892 (vs. yesterday at 6.8956)
- EUR/USD orders
- USD/JPY & EUR/JPY orders
- AUD and NZD orderboards
- More on UK shop price deflation - smallest in nearly three-and-a-half years
- Goldman Sachs preview of the FOMC meeting (spoiler: nothin'!)
- Australia - Services PMI for April: 53.0 (prior 51.7)
- China press: China stock market should not over-react to stronger regulation
- Eurozone GDP for Q1 (advanced reading) due today - quick preview
- ICYMI - HK, Japan markets closed today
- UK data - BRC Shop Price Index for April: -0.5% y/y (expected -0.5%)
- NZ - Unemployment rate: 4.9% (expected 5.1%) & Employment change 1.2% q/q (expected 0.8%)
- PIMCO: China credit impulse decline sharper, more extreme - material drag on growth
- People's Bank of China says they'll avoid any extreme volatility in liquidity
- What the press is saying in Japan today: BOJ assets swell to 90% of Japan's GDP
- ICYMI ... Forexlive Americas FX news wrap: Auto sales not so great. Oil moves lower.
- Gundlach comments - No recession in sight for the US
- Trade ideas thread - Wednesday 3 May 2017
- Apple (AAPL) earnings announcement: $2.10 EPS (expected $2.01)
- Private oil inventory data shows bigger than expected draw in crude stocks
- Russian govmt official says country favours extending cut deal by 6 months
- Economic data due from Asia today (Japan on holiday)
AUD and NZD were standouts on a mainly subdued session.
Early in the piece we got employment data from New Zealand, with strong beats on Q1 job gains and unemployment (offset somewhat by misses on wage gains). NZD/USD (and NZ crosses) jumped on the data release. NZD/USD ran into sellers above 0.6965 and has since slipped back a little. AUD/USD had a smaller jump with the kiwi but once the NZ started its slide AUD/USD fell even harder. Part of the slide was AUD/NZD sellers but also weighing on AUD are concerns over China, with warnings in the Chinese press today on liquidity and stock market jitters. Notably the People's Bank of China weakened the yuan (against the USD) at the central rate setting today and also injected a relatively large amount into money markets today after skipping OMOs yesterday. These are not necessarily indicative of something afoot in China, but it induced a few jitters.
USD/CAD has traded a few points higher also today, as I update its above 1.3725, so not too much in it.
Elsewhere market holidays in Japan and Hong Kong kept movements small; EUR, CHF and yen all very little changed against the USD.
Cable has managed a tiny gain, above 1.2945.
Gold, too, little change.
Oil popped a little on the release of the private survey of inventories (showed a large draw) but has since tracked sideways.
Regional equities:
- Nikkei - Japanese markets are closed today and will be for the remainder of this week
- Shanghai -0.33%
- HK markets closed today
- ASX -0.95%
Still to come:
- Eurozone GDP for Q1 (advanced reading) due today - quick preview
- Goldman Sachs preview of the FOMC meeting (spoiler: nothin'!)
