Forex news for Asia trading Wednesday 4 January 2017
- Indonesia suspends military cooperation with Australia
- Marine Le Pen wants a common currency, the euro, in parallel to the French franc
- Overnight yuan in Hong Kong fixed at 16.95% (yesterday's was 17.75%)
- Deutsche Bank on what to look for in the FOMC Minutes on Wednesday
- BOJ's Kuroda says Japan economy is at a critical point to end deflation
- USD/JPY update, through 118 now
- Westpac China Consumer Sentiment (December): 116.6 (prior 114.9)
- China is said to be considering options to support the yuan & curb outflows
- People’s Bank of China sets yuan reference rate at 6.9526 (vs. yesterday at 6.9498)
- Unintended consequences: China's new capital flight rules may encourage further outflows
- Japan data: Nikkei Manufacturing PMI (December final): 52.4 (flash was 51.9)
- UK data - BRC Shop Price Index for December: -1.4% y/y (prior -1.7%)
- EUR/USD: Multi-month consolidation nearing end, risk of range-flipping to the downside
- Japan data: Mixed messages about the state of recovery ... But positive GDP growth
- Goldman Sachs (and others) on China's new yuan basket
- ANZ on China's new yuan basket: Expect higher volatility in USD/CNY fixing & spot rate
- 7.2M earthquake off Fiji
- FOMC December Minutes preview from Goldman Sachs (and others)
- Trade ideas thread - Wednesday 4 January 2017
- Iraq PM says no whey Kurds sticking to output cut agreement
- How to get an invitation to Trump's inauguration. One way is to be Hillary Clinton.
USD/JPY was the mover in Asia today, popping from under 117.60 towards 118.20 before finding some sellers to hold it. News and data flow was limited (final manufacturing PMI was a solid improvement).
EUR/USD, USD/CHF and cable are all little changed on the session.
The NZD continued soft during the session, It had drifted off in Europe on Tuesday (the dairy auction results were much weaker than expected, but the slide came ahead of this), recovered somewhat during the US morning and then lost ground again. The losses headed back to overnight lows during the Asian day but on no relevant news flow nor data. Conversely the Australian dollar has retested its overnight high (its close to this as I update); again no data nor news of note.AUD/NZD buyers (insert 'D'uh' here ;-D )
Gold is a few cents to the better on the session. Oil, ditto.
The PBOC weakened the CNY against the USD today, and again net drained funds from the money market. Yuan borrowing rates surged again in HK. China would like to support the yuan and limit capital outflow, making CNH expensive to borrow may be a short-term fix for them:
- China is said to be considering options to support the yuan & curb outflows
Regional equities:
- Nikkei +2.24%
- Shanghai +0.39%
- HK -0.09%
- ASX -0.03%
Still to come ... its FOMC Minutes day!
- Deutsche Bank on what to look for in the FOMC Minutes on Wednesday
- FOMC December Minutes preview from Goldman Sachs (and others)
