Forex news for Asia trading Wednesday 19 August 2015
- China's Shen suggests that businesses hedge FX risks
- Barclays: Limited scope for the yen to weaken further (Are they watching the Kuroda line?)
- China Commerce Ministry: Possibility of export fall can't be ruled out
- Japan chief cabinet secretary Suga: Economy is on a moderate recovery track
- BOA Merrill Lynch monthly fund survey highlights record concerns on emerging markets
- Thoughts on the RBA from RBC ... still expecting further rate cuts
- China Foreign Direct Investment +7.9% y/y in Jan-July
- Central bank of Vietnam devalues dong by1%, widens trading band to 3%
- PBOC sets yuan reference rate at 6.3963, little change
- FOMC Minutes: 5 things to watch (though Spinal Tap would say there is 11)
- Australia data - Westpac Leading Index for July: 0.0 % m/m (prior was flat at 0.0%)
- Japan July Trade Balance: Y -268.1bn (expected Y -53.0bn) economic data result
- FOMC July Minutes coming up Wednesday in the US .... what to watch for
- Australian Treasurer Hockey: Says he doesn't accept Australia in sub-par growth era
- New Zealand- ASB stick with their $NZ4.50 milk price forecast for this season
- Shanghai Securities News: China should expand fiscal deficit
- New Zealand Q2 data: PPI input -0.3% q/q (prior -1.1%) PPI output -0.2% (prior -0.9%)
- NZ media catching up with news of Russian dairy import bans being lifted
- More on BoE's Miles comments re UK interest rate hike
- Analyst on API huge oil inventory draw- "no one really seems to trust that big number"
- BoE's Miles: Turning point on rates is coming pretty soon
- China - Goldman Sachs yuan forecasts shift lower as economic slowdown worsens
- Trade ideas thread for Tuesday 19 August 2015
- API crude oil inventories: -2.3mln barrels
- ANZ raises forecast for Fonterra 2015/16 milk payout to NZ$3.75-$4
- Fitch upgrades Greece to CCC
Chinese stock markets lost ground again today, following Tuesday's sell off with more extension lower. Stocks opened lower, bounced to recover much of the opening gap and then plunged again.
As of updating the Shanghai Composite is down nearly 4.5% on the session while Shenzen has lost 4%. The China Securities Finance Corp said last week they won't be conducting daily intervention to support the market. They may well want to rethink that.
On the currencies it was a day of minor, but noticeable, movement.
EUR was a (relative) star perfomer, with EUR/USD up around 25 or so points from early session lows. The CHF gained also, USD/CHF dropping from earlier highs, but its more or less unchanged from where I walked in this morning. GBP has made a very minor gain, cable is just a few ticks higher.
USD/JPY was steady right into the Tokyo fixing, from where it slipped 15 or so points quickly after.
NZD/USD took a quick peek above 0.6600 (emphasis on quick), but has since dropped back again, ticking lower to just above 0.6575 as I update.
AUD/USD was the opposite of today's star performer. It traded reasonably steadily around 0.7335/40 or so but took a hit as China stocks fell, warning were issued on the future for Chinese exports, and hints of further yuan devaluations were dropped (see bullets, above).
Oil gained a few cents on the session while gold is more or less unchanged.
Still to come:
- Data still to come from Japan this afternoon
