Forex news for Asia trading Monday 31 July 2017
- A run down on China reforms - efforts on overcapacity cuts, deleverage & more
- China comments on FDI, trade ... and North Korea
- US debt ceiling - Coming up is "just 12 working days to avert another big problem"
- Introducing Nick Bovell
- MSCI says Chinese companies can be dropped from EM index
- ANZ: USD sentiment too bearish; Risk reward doesn't favour selling USD at these levels
- Australia - Private Sector Credit for June: +0.6% m/m (expected +0.4%)
- PBOC sets USD/CNY mid-point today at 6.7283 (vs. Friday at 6.7373)
- Australia - Monthly Inflation Gauge: 0.1% m/m (prior 0.1%)
- China official manufacturing PMI (July): 51.4 (expected 51.5)
- China official Services PMI (July): 54.5 (prior 54.9)
- New Zealand - July ANZ Business confidence 19.4 (prior 24.8) Activity Outlook 40.3 (prior 42.8)
- Australia - HIA new home sales for June -6.9% m/m (prior +1.1%)
- More from Japan on North Korea - didn't discuss military action with Trump
- Asia morning underway, a wee USD bid but a (small) mixed bag
- Yes, we had the quickie RBA previews ... but if you want MOAR, here you go
- Japan - June preliminary Industrial Production: +1.6% m/m (expected +1.5% )
- OIL - US is considering oil-related sanctions against Venezuela
- Heads up for Japan data due at 2350GMT - June preliminary Industrial Production
- AUD traders note, the RBA meet Tuesday. Here are a couple of quickie previews
- UK data shows optimism at firms at a 6 month low
- New Zealand - Building permits for June: -1.0% m/m (prior +7%)
- EUR/CHF technical analysis (this is a bit dated)
- BoE meeting due Thursday - but will it go ahead? Staff to go on strike?
- Weekend - Putin says US must cut 755 diplomatic staff, more measures possible
- NZD - Stretched technical, stretched long positioning argue for down correction, but ...
- Scottish govt calls for Scotch to be defined in UK law - protect whisky after Brexit
- EUR/USD, AUD/USD: Near 'Exhaustion Point' - key levels
- Trade ideas thread - Monday 31 July 2017
- US to UN on North Korea - no point of a meeting if no results
- Economic data due from Asia today - China PMI day
- Monday morning Forex prices, early indications: 31 July 2017
Weekend:
- US flies bombers over Korean peninsula
- Trump puts the pressure on China to deal with North Korea
- The UK will never get winning Brexit deal if the Conservatives can't get on the same page
- Is BOC core CPI entirely obsolete?
- EUR/USD - the policy chasm that'll see it reverse lower
- Video: BitCoin isn't a real currency and why that doesn't matter if you're a trader
- The weekly performance chart puts the CHF decline in perspective
- North Korea says latest ICBM test is a "stern warning" to US
- ECB should start to discuss QE exit strategy says Lautenschlaeger
- The Justice Dept is covering up a high-profile Russian assassination in Washington and no one knows why
- If unconventional tools are used as a substitute for rate hikes, how does FX respond?
Plenty of weekend and Monday news and data flow to impact on markets today but net a narrow-range sort of session in Asia to open the FX week.
The major news item was the North Korean launch of another ballistic missile test over the weekend, despite warnings from the US, China, Japan and others. The Monday impact on currencies was limited, there was some flow into yen and the USD but the impact was lost amongst noise from other movement.
For Monday the main points of interest were Japanese Industrial Production data (preliminary for June) which was higher again and Chinese official PMIs (July), both of which slipped a little on the month, but still within 'expansion' territory. There was other data (see bullets above for all the details) but these were the main two.
For currencies it was a softer session for the EUR, down against the USD (but barely off multi-week/month highs though) and the yen. USD/CHF was barely changed on the session in a 20 or so point range. Cable retested its Friday US high but is near its session low as I update (and like EUR/USD not far off a multi week/month high).
USD/CAD popped above 1.2480 and has stabilised not too far from there. Oil ticked a little higher (Venezuela was in the news, as were proposed oil-related sanctions on the country from the US - more on these to come Monday US time we are told).
AUD/USD lost a few points in early Tokyo but managed to recover, only to slip a little to me mid-range for the session as I update. NZD/USD was weaker early Monday but it too managed to recover and ditto - its mid-range or so as I update. iron ore traded higher in China today.
Regional equities:
- Nikkei -0.04%
- Shanghai +0.58%
- HK +0.78%
- ASX +0.49%
