Forex news for Asia trading Wednesday 31 August 20
- M6.8 earthquake off PNG (north of Australia)
- BOJ stuck in the Stone Age
- Mr. Trump is heading off on a trip to Mexico tomorrow!
- China vice fin min says no foundation for long-term depreciation of yuan
- China. Its like Airbnb, but for oil.
- China data: Westpac/MNI Consumer Sentiment: 111.5 (prior 114.0)
- BOJ Funo: Japan's economy continues to recover moderately as a trend (drink)
- Australia data: July private sector credit: 0.4% m/m (expected 0.4%)
- PBOC sets USD/CNY central rate at 6.6908 (vs. yesterday at 6.6812)
- NZ data: ANZ business confidence: 15.5 (prior 16) & Activity outlook 33.7 (prior 31.4)
- Japan finance minister Aso says brokerage workers are 'shady types'
- Japan July preliminary industrial production: 0.0% m/m (expected +0.8%)
- UK data: Consumer confidence -7 (expected -8), Business Barometer 16 (prior 29)
- El-Erian says Fed Sept. rate hike chance goes to 80% if the NFP shows these 3 things
- Trade ideas thread - Wednesday 31 August 2016
- France's economy minister Emmanuel Macron has resigned
- Bank1: Fed 'should throw caution to the wind' & hike. Bank2: Stock crash coming.
- Overnight press: China's president calls for progress on reform plans
- Oil - private inventory survey shows US crude stocks build
The last day in August was a relatively quiet affair here in the Asian morning. USD/JPY managed a pop to above 103.20, which came well after earlier data for preliminary industrial production in Japan (July) disappointed against estimates (see bullets above for the data, but it was a flat reading on the month and suggestive of stall in output again). USD/JPY has subsequently retraced its gain and is just above 103 as of updating.
UK data prior to this was mixed, showing poor consumer confidence (but a bounce from the prior month) and the business 'barometer' dropping from the previous month (it nearly halved) but still showing optimists in the ascendency (and again, see bullets above for data).
Cable had a positive day, taking some of its gains from USD weakness (cable up near 50 points from session lows); EUR/USD around 20 points higher and USD/CHF down maybe 10 or so.
AUD and NZD both gained a little, the NZD the better of the two but neither much to write home about.
BOJ board member Funo spoke in Japan; generic sort of comments from him (he does sound very much like a company man, nothing to surprise us from him).
Gold gained a few dollars, oil dropped a little on the private inventory data earlier but official data will be a better guide on Wednesday morning in the US.
A big earthquake off Papua New Guinea, no tsunami warning issued:
Shares in South Korea's biggest shipping company, Hanjin SHipping, were suspended after creditors refused to extend any further loans. Hanjin will file for court receivership (more here: Hanjin Shipping's revamp runs aground).
Regional equities:
- Nikkei +0.78%
- Shanghai +0.29%
- HK +0.02%
- ASX -0.87%
