Forex news for Asia trading Tuesday 7 March 2017
- China trade balance (February): CNY -60.4 bn (expected CNY 172.5bn)
- SWIFT banking system bars North Korean banks
- Yen bears sweating over "the Detroit put"
- PBOC sets USD/CNY mid-point at 6.9032 (vs. yesterday at 6.8957)
- RBA infographic: "Australian Economy SNAPSHOT"
- More on Japan fourth quarter GDP - capex rises at fastest in almost 3 years
- EUR/USD orderboard
- USD/JPY & EUR/JPY orders
- AUD and NZD orderboards
- Goldman Sachs on the RBA - better than even chance of November rate hike
- "How a Bail-In Could Save the Italian Financial System: Quicktake Q&A"
- Japan data: BoP Current Account Balance (January): ¥ 65.5bn (expected ¥ 270.0bn)
- Japan GDP for Q4 2016, final: +0.3% q/q (expected +0.4%)
- Russia's oil minister Novak says compliance with oil cut deal is satisfactory
- Saudi oil minister says output cuts have exceeded expectations
- Fed to make sequential hikes until 'something breaks': Gundlach
- UK Chancellor Hammond to deliver upbeat assessment of the UK's economic future
- Jeffery Gundlach says 'old school' sequential rate hikes may be on the way
- Trade ideas thread - Wednesday 8 March 2017
- New Zealand - Manufacturing activity data for Q4
- Private oil inventory data shows bigger than expected build in crude stocks
- NZ data: ANZ Truckometer (Feb.): +2.3% m/m (prior -0.8%)
- ICYMI: Forexlive Americas forex news wrap: The markets muddle through the day. US trade not great.
If I told you I woke up just to write this wrap I'd be telling porkies, but it would give you some idea of the activity levels in Asia today. 'Twas quiet indeed.
We did get some Japanese data, the final Q4 2016 GDP along with January current account:
GDP was slow:
- +1.2% y/y (annualised 4th quarter), against expectations of +1.5% and the preliminary which clocked +1.0%
- The stand-out achiever of the GDP data was business investment, capex improving at its fast rate in 3 years, coming in at +2.0% q/q (expected +1.7% and prelim.of +0.9%)
On the current account:
- Surplus contacted for the first time in 8 months
- Rebound in crude prices & a widening trade deficit
Currency impact was subdued, the yen did find some strength through the session, with USD/JPY sliding from early highs tipping 114 down to just ahead of 113.60. EUR/JPY on the slide also, towards 120.00.
EUR/USD, USD/CHF and GBP/USD all traded very small ranges with basically zilch in news and data to impact.
The People's Bank of China weakened the yuan today (a USD/CNY higher mid rate). Speaking of China, we also got the trade balance for February, which came in at a shock deficit. Or, sort of a shock ... January-February trade data from China is pretty much always tumbled about by the lunar new year holiday. Combining the January-February data gives a clearer picture:
- Surplus of 293.7bn CNY
- Jan-Feb Imports +34.2% (yuan terms)
- Jan-Feb exports +11% y/y (yuan terms)
- (Note that in 2016 the LNY holiday fell in February 7 - 13.; This year the holiday was January 27 - February 2)
The Australian dollar edged higher during the session ahead of the China trade data, popping above 0.7605 (briefly) and then sliding a little after the data. A real little, its down around 0.7595 or so as I update. NZD is a little higher too, within a very small range.
Gold, a touch better on the session. Oil dropped on the weekly private inventory report (a bigger build in US crude stocks than expected).
Regional equities:
- Nikkei -0.59%
- Shanghai +0.04%
- HK +0.50%
- ASX -0.18%
