Forex news for Asia trading Thursday 7 July 2016
- Japan election coming up this weekend
- Australia's Morrison: S&P shows the reality of fiscal environment for Australia
- Japan's MOF, BOJ & FSA officials to meet Friday to discuss financial markets
- S&P revise outlook for Australian govmt bonds to negative (from stable)
- CBRC: China's state-owned banks face severe bad asset pressure
- PBOC sets yuan mid-point rate for today at 6.6820 (vs. yesterday at 6.6857)
- Well worth your time: "China banks’ $24 trillion rollover risk"
- BOJ's Kuroda: CPI likely to be slightly negative for time being
- Five Star Movement emerges as Italy’s leading political party in 4 separate opinion polls
- Australian Construction PMI for June: 53.2 (prior 46.7)
- Brexit fallout - Moody's comments on post-Brexit default wave
- China's CASS recommends property taxes on tier 1 and (some) tier 2 cities to curb prices
- UK data - Lloyds Business Barometer for June falls to 4.5 year low
- Brexit fallout update - Three more property funds suspend redemptions
- Australian election update: Coalition 72, Labor 66 (76 needed to win a majority)
- PIMCO: FOMC minutes give "Very few" insights about conditions needed for next hike
- NZ data - ANZ Truckometer (June): +4.7% m/m (prior -1.7%)
- The Fed says "technical error" with the June FOMC Minutes release
- ECB President Draghi protests over police raid of Slovenian central bank
- Trade ideas thread - Thursday 07 July 2016
- DoubleLine's Gundlach: "Things are shaky and feeling dangerous, I am not selling gold”
- Oil - Russia says considering zero oil export tax from 2018
- Private oil inventory data shows big draw (expected draw of 2.3mln barrels)
A less frantic day in Asia today, enlivened a little by Standard and Poor's revising their outlook for Australia's sovereign rating to negative from stable. The ratings agency cited potential parliamentary deadlock and its likely impact on delayed budget deficit reduction. We still await a result in the election, counting continues. More in the bullets, above.
The Australian dollar was marked lower immediately on the headline announcement but there was little follow through, AUD/USD bouncing from circa 0.7470 and holding above 0.7500 as i update.
NZD/USD dropped a little alongside the AUD, not to the same extent but it too is trading mid-range as I write.
EUR/USD dribbled down a few points for the session but is net little changed. CHF little changed also.
USD/JPY (and yen crosses generally) are lower, a decent fall for USD/JPY from early highs around 101.40 to under 100.80; its around 100.90 as I write.
And so to GBP; illiquid conditions persist but volatility was more subdued today. Brexit ramifications continue to wash through markets. An early low for cable revisited close to overnight lows but it recovered to around 1.2940 and its not too far from session highs now.
Gold managed a gain today after late US saw it a down around 1364. Oil popped higher on a larger than expected draw from private inventory data, a pop that has been more or less sustained but not extended during the timezone here.
Regional equities:
- Nikkei -0.49%
- Shanghai -0.49%
- HK +0.75%
- ASX +0.43%
