Forex news for Asia trading Friday 6 January 2017
- China's CASS says expects 2017 GDP growth 6.5%
- Oil - Barclays say to watch for whipsaw prices as output data slowly emerges
- Yen losing ground alongside offshore yuan
- Japan data - November Labor Cash Earnings: 0.2% y/y (expected +0.2%, prior 0.1%)
- China fund manager looking for higher yuan rates till into new year
- China press: PBOC likely to increase management of yuan rate expectations this year
- Bitcoin ... you win some, you lose some (down 23% as 'volatile little bubble' bursts)
- More on Japan PM Abe: "This is the year when we follow through on work reforms"
- It's the Friday before the NFP trade ideas thread! (One at a time, please)
- ForexLive's Magnateic attraction
- (Recap ICYMI) BoE's Haldane notes signs of climbing inflation
Nothing happening in Asia ahead of the NFP report Friday morning in the US? Nope, a few jaw-droppers here today, and some big moves.
The People's Bank of China strengthened the CNY against the USD by its most in 11 years today, a huge near 1% revaluation (0.9%). It's the biggest revaluation since July of 2005, 639 points! The other shock (some said it was a surprise ... I had to do a triple-take so to me that's a shock) was the huge Australian November trade balance ... wait for it ... SURPLUS!
- PBOC sets USD/CNY central rate at 6.8668 (vs. yesterday at 6.9307)
- Australia Trade Balance for November: SURPLUS $1243m (expected -$550m, prior -$1541m)
More on the yuan:
- PBOC hiked the CNY by the most in 11 years today - recap
- Hong Kong's offshore yuan overnight borrowing rate fixed at 61.333% for Friday
- While we await PBOC CNY set ... Goldman Sachs see USD/CNY at 7.3 by end year China fund manager looking for higher yuan rates till into new year
More on the Aussie trade surplus:
- Australia Nov. trade balance - export trend surges higher
- Westpac: Q4 has seen a much better net export performance for Australia
- CBA on Australian trade balance: Trade surpluses are clearly on the cards in 2017
- Capital Economics: Australia external sector has performed better
There were some good-sized moves on the yen and the yuan during the timezone today. The huge revaluation on the CNY saw an immediate response in the offshore Yuan (CNH), with a big buyback of USD/CNH (15 minute candle chart):
USD/JPY surged in response also, up around a big figure from its session low (15 minute candle chart again):
Elsewhere it was much more subdued. The Australian dollar did very little leading into, over, and after the trade surplus data. AUD/USD is on its session low as I update, dwon 20-odd points from its high today. NZD/USD, too, a a quiet session.
EUR/USD drifted a few points lower. Cable was a slightly bigger mover, back down under 1.2400 for most of the session but not extending too much on its loss from there. USD/CHf nibbled a few points higher.
Gold drifted down a few dollars only while oil is little changed on the session.
Regional equities:
- Nikkei -0.57%
- Shanghai -0.11%
- HK +0.40%
- ASX +0.02%
Still to come: Its non farm payroll report day in the US!
- Preview: What To Expect From NFP? Views From 10 Major Banks
- Goldman Sachs preview of the nonfarm payroll - what to expect
- Nonfarm Payroll report due Friday morning US time .... will it be a snow job?
