Forex news for Asia trading Thursday 8 September 2016
- PBOC tightening the screws on CNH shorts
- Westpac on Australian trade data: Exports exceed our expectations, gold led
- Japan chief cabinet secretary Suga: Job mkt, wages recovering 'without a doubt'
- China August trade balance +346bn yuan
- 10 insane things we believe on Wall Street
- Market expectations for a Fed hike this month are too low says Mohamed El-Erian
- Australia - July trade balance: -2.41 bln (expected -2.7bn)
- People’s Bank of China sets yuan reference rate at 6.6620 (vs. yesterday at 6.6555)
- NZ data: ANZ inflation gauge for August +0.1% m/m (prior -0.3%)
- Australian Treasurer Morrison: GDP data a reminder not to be complacent on economy
- GDP figures just out: "Japan looks to have again defied the doom-mongers"
- Japan Q2 GDP (final): 0.2% q/q (0.0% expected) ... (also other data)
- Australia press: DB's 'five headed dragon' that could weigh on global activity
- UK data: RICS house price balance for August: 12% (expected 2%)
- RBA's Lowe: Need to focus on balance sheets as well as credit growth
- Westpac's 'High Conviction FX Trades': A strong leaning in favour of “long risk”
- Thursday's trade ideas thread - 8 September 2016
- ECB meeting preview - mulls removing Draghi's headphone jack
- Fed's Williams speaks ... Goldman Sachs listens (& lowers rate hike probability)
- Oil price jump - private inventory data shows large draw
- JCER survey shows 60% of economists expect BOJ to ease further this month
A relatively subdued Asian session again, with only minor movement. I doubt there are too many waiting for what looks like a nothing day from the ECB meeting but something sure weighed on Asia trade today. Zzzzzz ....
We got a reasonable flow of data and news, including Japanese Q2 GDP (and more), Australian and Chinese trade balance data (see bullets above for all these) .
Oil was a mover early in the session (or late in the US session if you prefer), private inventory data headlined a huge draw ... the market now awaits the official data to see if yet again this private data is on the wrong track.
USD/JPY moved a little higher following better than expected GDP data, testing 101.90 but drifting back again to be barely changed for the session.
EUR, CHf and GBP all had a slightly better session against the USD, with the emphasis on 'slightly', ranges small. (ps. Some more 'stabilsing' UK data today - RICS house prices and also employment intentions ... see bullets above.)
NZD/USD tested above 0.7470 and has since come back 15 points to be just a few tics higher on the session, while AUD/USD had a similar pattern with a smaller range to be also ever so slightly up. Australian trade data showed a smaller than expected deficit, & narrower than last month's.
We had trade balance data from China also, both exports and imports beat expectations. Yuan funding costs moved higher as the PBOC sought to limit bearish yuan sentiment now that the G20 is over and devaluation expectations return to the market.
Regional equities:
- Nikkei -0.40%
- Shanghai -0.03%
- HK +0.38%
- ASX -0.89%
Still to come: Hiroshi Nakaso, Deputy Governor of the Bank of Japan is to speak at a meeting hosted by the American Chamber of Commerce in Japan (ACCJ) in Tokyo, due at 0430GMT
