Forex news for Asia trading Monday 4 September 2017
- Its 'super Tuesday' tomorrow for RBA Governor Lowe
- Australia - a double dose of RBA Governor Lowe coming on Tuesday
- New Zealand Treasury's Monthly Economic Indicators out now
- Australia data - Q2 Inventories: -0.4% q/q (expected 0.3%)
- Australia - ANZ Job advertisements for August: 2.0% m/m (prior +1.5%)
- PBOC sets USD/CNY central rate at 6.5668 (vs. Friday at 6.5909)
- Australia data - Melbourne Institute Inflation Gauge (August): 0.1% m/m (prior 0.1%)
- German election - TV debate - Merkel the winner
- Japan monetary base data for August +16.3% y/y (vs. +15.6% expected)
- Its nearly 9am in Tokyo, soooo ... here's an early wrap!
- Former PBOC adviser says PBOC should free float yuan ASAP
- South Korea fin min says impact of North Korea nuke test could spread to real economy
- North Korea test - Here is the full White House statement on 'nuclear capabilities'
- Citi says market reaction to North Korea nuclear test to be short-lived
- Trump - Abe phone call. Confirms 'iron clad' mutual defense commitments.
- JP Morgan on North Korea escalation - levels to watch on yen
- More on that South Korean missile firing "targeting North Korea's nuclear test site"
- South Korea (yes, South) fires ballistic missile in test
- Russia says U.S. closure of diplomatic sites a 'blatantly hostile act'
- UN Security Council will hold an emergency meeting on Monday on North Korea
- Trade ideas thread - Monday 4 September 2017
- Economic data due from Asia today
- China has begun emergency monitoring for radiation along its border with North Korea
- US Def Sec Mattis on North Korea - threatens massive response
- Monday morning 4 September 2017, Forex prices - early indications
Weekend
- Happy 70th birthday to Mario Draghi
- Brexit minister Davis says UK will not let EU use time pressure to force Britain's hand in talks
- North Korea says it has successfully tested a hydrogen bomb
ICYMI:
It was a very early start for activity in Asia today with North Korea's weekend nuclear test seeing much stronger yen and CHF and weaker 'risk' even before the New Zealand forex market kicked off. USD/JPY dropped around a big figure from late Friday levels in the US, with USD/CHF off too but not by quite so big an extent. AUD/USD was off, around 40 points or so early, and NZD weaker also. Against the yen the AUD and NZD drops were much larger.
USD/JPY 'gap' lower on Monday morn after the North Korean H-bomb test over the weekend
While the bullets above have all the North Korea news and developments, here they are grouped together:
- North Korea test - Here is the full White House statement on 'nuclear capabilities'
- Citi says market reaction to North Korea nuclear test to be short-lived
- US President Trump says will use full range of diplomatic, conventional and nuclear capabilities
- JP Morgan on North Korea escalation - levels to watch on yen
- More on that South Korean missile firing "targeting North Korea's nuclear test site
- South Korea (yes, South) fires ballistic missile in test
- UN Security Council will hold an emergency meeting on Monday on North Korea
- China has begun emergency monitoring for radiation along its border with North Korea
- US Def Sec Mattis on North Korea - threatens massive response
- North Korea appears to have tested a nuclear bomb
As well as currency moves, UST futures and equity index futures reacted also, USTs up (in price) while S&P500 eminis opened weaker. Gold shot higher.
The early start for movement unfortunately translated into an early finish, the moves and most of the retracements were largely finished by the time Tokyo opened up proper for the day. There was some wiggle after, but the bulk of the moves were done and dealt., leaving a small range session for the balance of the day.
EUR/USD is a few points net higher for the session, cable is barely changed, as is USD/CAD. AUD/USD and NZD/USD have recovered all their early losses while USD/JPY is sitting in the middle of its range, still down 60 or so points from its late US range.
The People's Bank of China marked the mid-point rate for the USD/CNY much lower today, to the lowest reference rate since late June of last year.; offshore yuan has surged alongside, again.
On the data calendar today the major item was Australian Q2 inventory; this came in at a huge miss and will detract from already low Q2 GDP expectations (data due 0130GMT on Wednesday 6 September 2017).
Regional equities:
- Nikkei -0.83%
- Shanghai +0.04%
- HK -0.48%
- ASX +0.57%
Still to come:
- It's a US holiday Monday, Happy Labor Day!
