Forex news for Asia trading Friday 9 September 2016
- Reuters report BOJ Governor has entered PM Abe's office
- PBOC advisor warns non performing loan ratio could rise
- BNP on the yuan - devaluation warranted
- Australia July Home loans: -4.2% m/m (expected -1.5%)
- China August CPI: 1.3% y/y (expected 1.7%) & PPI: -0.8% y/y (expected -0.9%)
- PBOC sets USD/CNY mid-point today at 6.6684 (vs. yesterday at 6.6620)
- USGS reports 'seismic event' in Nth Korea ... may be nuke test says South
- Deutsche Bank on Fed governor's 'pop up speech' coming Monday
- Japan money stock for August, M2 and M3
- NYSE news - to introduce new volatility procedures starting Monday
- More on Jeff Gundlach's comments from earlier ... sensing a "bond unfriendly turn"
- UK accountants say British firms likely to cut investment 2016 &2017 due to Brexit vote
- New Zealand - Retail card spending (August): -0.4% m/m (expected +0.3%)
- Just waking up? Here's what not so super Mario did overnight (i.e. ECB news)
- Yellen to the banks: I want your money
- Data due from China today - CPI and PPI for August. Upside surprise coming?
- Trade ideas thread - the TGIF edition, 9 September 2016
- Gundlach on the wires: Clearly this is a bad time to raise rates
- Aussie press: RBA Stevens final interview
North Korea has apparently conducted another nuclear test (it seems beyond doubt, but maybe it was only fat boy Kim Jong Un falling out of bed), with reports that a M5+ 'seismic activity' in the country was a test. South Korean authorities say that the emitted energy was double that of the North's nuclear test back in January. South Korea's President Park said North Korea's leader showed "maniacal recklessness". Nothing like trying to calm the situation, eh?
- South Korea's won was down about half a percent and more
- Japanese shares were a heavy in the morning session, the test cited as a factor in the selling
- This is the fifth nuclear test by North Korea.
Yen gained ground, with USD/JPY dropping from its late US high to test 102 and just under there briefly.
EUR/USD edged a little higher through the session, gaining towards 1.1280. Cable, too, had a grind it out gain, up above 1.3325 briefly. USD/CHF is a few tics lower.
AUD and NZD had subdued sessions, there up tiny on the session against the USD.
Data focus today was on inflation figures from China, the CPI coming in at its lowest since October of 2015, which China August PPI had its smallest decline in 52 months (y/y), and registered a big improvement over the July reading.
Also today was housing finance data from Australia, the headline much weaker, down 4.2% on the month. It can be a volatile data point, but nevertheless this was a weak reading also in the details (except for investor loans ... back up)
The South Korean central bank left rates unchanged at its meeting (1.25%), as widely expected.
Regional equities:
- Nikkei +0.22%, bouncing back as afternoon trade opens :
- Shanghai +1.02%
- HK +1.05%
- ASX -0.75%
Still to come: BOJ Governor Kuroda to speak with press at 1 pm Tokyo time (0400GMT)
