Forex news for Asia trading Tuesday 5 April 2016
- How to trade the RBA decision: BoA, Barclays, RBS, BNPP, Credit Agricole
- China news - NPLs up, PBOC disagrees with S&P outlook downgrade, 'but relaxed'
- BOJ Governor Kuroda comments on the yen
- Comments from S&P analyst on China - what would quicken a ratings downgrade
- Japan - Nikkei Services PMI (March): 50.0 (prior 51.2)
- Nearly one in four Japanese adults admits to crying in the office restroom
- Australia data: Trade balance (February): Deficit of 3410m (expected deficit 2500m)
- PBOC sets USD/CNY at 6.4663 (yesterday China was closed, Friday's set was 6.4585)
- NZ data: ANZ Commodity Price Index for March: -1.3% (prior +0.4%)
- More from Bank of Japan Governor Kuroda (spoiler - same old)
- Comments from BOJ's Governor Kuroda and newbie Sakurai
- Japan - Labor Cash Earnings (February): +0.9% y/y (expected +0.2%)
- Japan Economy Minister Ishihara: Downside risk to economy
- Recap: Fed's Kashkari expects moderate growth, says policy about right
- Australia - AiG Services PMI for March: 49.5 (prior of 51.8)
- Australia - ANZ weekly consumer sentiment: 113.4 (prior was 114.5)
- Survey - Australian businesses the most pessimistic for two years
- NZIER Quarterly Survey of Business Opinion: Q1 confidence 2 (from 15 prior)
- FT: Saudi Arabia has banned vessels that transport Iranian oil
- Fed's Kashkari says current US monetary policy stance is 'about right'
- "China jitters could trigger global market bloodbath, IMF warns"
- US to further curb tax-evasion 'inversion' deals
- Japan press: BOJ mulls downgrading inflation outlook amid lower expectations
- Trade ideas thread for Tuesday 5 April 2016
The day kicked off with a report from NZ showing a hard fall in business confidence for Q1. The report triggered further NZD sales, under 0.6820 then below 0.6800 before bouncing from lows just under 0.6790. The bounce has been limited (as I write) to under the morning's break level around 0.6820.
Lower-tier data from Australia followed, showing signs of further weakness (Services PMI and weekly consumer sentiment).
Japanese data was more positive, at least for wage earners, with gains in earnings for February. Yen strengthened following this data, taking out 111.00 and down to around 110.80 before shuffling sideways as of writing.
Yen crosses were lower, most notably AUD/JPY and NZD/JPY ; USD/CHF, EUR/USD and Cable were all little changed.
Australian trade data today showed a widening deficit, and revisions to prior data widened it even further; export (lack of) performance the main culprit. We are now awaiting the Reserve Bank of Australia decision due at 0430GMT.
Stock markets in the region reflected the dour mood, Japanese stocks posted heavy losses on Tuesday morning session.
US stocks (overnight futures) slid, perhaps related to the US Treasury issuing new initiatives to combat corporate tax inversions (see bullets above).
Oil traded heavily again. Gold surged, up around $10.
Regional equities:
- Nikkei -1.59%
- Shanghai +0.97%
- HK -1.34%
- ASX -1.34%
Still to come: RBA decision due at 0430GMT
- Previews here (scroll down for links)
- And How to trade the RBA decision: BoA, Barclays, RBS, BNPP, Credit Agricole
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