Forex news for Asia trading Tuesday 30 May 2017
Asia Tuesday:
- China press editorial: Policymakers need to tread carefully to avoid liquidity crunch
- USD/JPY, 110 to hold as the bottom of the range?
- Australia, Building approvals (April): +4.4% m/m (expected 3.0%)
- Japan coalition partner: Says any new BOJ governor should avoid dramatic change
- Moody's on NZ: 2017 budget highlights fiscal flexibility, shock absorption capacity
- One for the Aussies (especially if someone owes you money ;-) )
- EUR continues its slide (CHF too)
- Japan retail sales (April) +3.2% y/y (expected +2.3%)
- Japan data - Overall Household Spending (April): -1.4% y/y (expected -0.9%)
- Japan: Jobless rate (April) 2.8% (vs. expected 2.8%) & Job-to-applicant ratio 1.48 (expected 1.46)
- Australia - Weekly consumer confidence: 111.2 (prior 110.5)
- Fed's Bullard: Rate now close to an appropriate rate
- Japan data today - preview of the retail sales data
- New Zealand - Building approvals (April): -7.6% m/m (prior -1.8%)
- German press reports Greece may opt out of next bailout payment
- Australian fund manager returns money to clients, sees upcoming 'calamity'
- UK election poll - Conservatives 43%, Labour 37% (Survation poll)
- Asia markets today - let the holiday's continue! (In HK and China at least)
- Japan data today - preview of the jobs data
- UK PM May says we are prepared to leave the European union without a deal
- Australia data due today - building permits the focus. Preview.
- Trade ideas thread - Tuesday 30 May 2017
- Economic data due from Asia today
- UK opposition leader says if elected he'll get a Brexit deal with the EU
There was no US wrap for the holiday there, but here are the session headlines:
- Preview: Three things you need to know about Tuesday's huge US PCE inflation report
- Six big events coming up on the economic calendar in the day ahead
- Cable bounce is the story in the FX market
- ECB's Weidmann: Exit discussions legitimate given price outlook
- Tech targets: EUR/USD, GBP/USD, USD/JPY, AUD/USD, NZD/USD - UOB
- Oil gains weigh on USD/CAD
- Draghi Q&A: Headline inflation has been subdued, including wage growth
- Merkel says it was right not to gloss over differences with US on climate
- Q&A time: Watch Draghi live in European parliament
- Draghi: Downside risks to growth are further diminishing
- Euro near the best levels of the day ahead of Draghi
- Well, at least Canada and France are in the mix today
- Can Draghi produce a spark of life today?
And, turning back time for the ICYMI today!
- ForexLive European morning FX news wrap: All quiet as UK and US enjoy a long week-end
There were some sharp moves in Asia today, and a few decent-sized ranges.
During Europe/US time (despite the US holiday) ECB President Draghi spoke:
- Draghi Q&A: Headline inflation has been subdued, including wage growth
- Draghi: Downside risks to growth are further diminishing
He weighed somewhat on the EUR, but the selling hit harder in early Asia with headlines crossing that
- German press reports Greece may opt out of next bailout payment
That is, unless creditors come up with an acceptable debt relief plan Greece may reject its next bailout tranche (check out that bullet for more). EUR/USD slumped; it had weakened somewhat to circa 1.1160 but accelerated the drop, eventually down to around 1.1120 lows.
The CHF, too, slid on the session, with USD/CHF climbing above 0.9790. GBP/USD fell, weighed on by remarks out of the BBC Q&A. I know the pundits will come up with a 'winner', but what from what I saw ... well good luck with either of those two.
AUD and NZD, too, traded a little heavier on the session. oAUD/USD dropped ahead of its major data release on the day (building permits - a beat funnily enough) and stabilised a little after. It still appears net heavy though. NZD/USD is down a little, but not as much as AUD. (Ps. the previous GDT auction was 2 weeks ago so I was expecting one today in London, but no - the next is due on June 6)
And so to USD/JPY, quite a decent move lower (for Asia) on the session (and for yen crosses generally). We got jobs, household consumption and retail sales data out of Japan today (see bullets above for details) .
Gold is higher on the session, a good outperformer. Oil a touch weaker.
Regional equities:
- Nikkei -0.15%
- Shanghai & HK closed today
- ASX +0.08%
