Forex news for Asia trading Tuesday 11 August 2015
ForexLive Asia FX news wrap: China yuan devaluation sends USD higher across board
Forex news for Asia trading Tuesday 11 August 2015
China cuts yuan reference rate by the most on record
- Dalian iron ore up 3% today - close to limit up
- PBOC answers questions on improving the yuan setting procedure
- Shanghai Composite barely moving after the PBOC yuan 'adjustment'
- Yuan currency war .... really? Putting the yuan weakening into context
- With FX devaluation, China shows it's playing for keeps
- PBOC says today yuan rate set is a one-off adjustment
- China weakens yuan reference rate by 1.9%, most on record
- More on the People's Bank of China's yuan comments - depreciation coming?
- People's Bank of China says strong yuan puts pressure on exports
- China data - new lending, money supply, social financing
- Australia, NAB business confidence 4 (prior 10), conditions 6 (prior 11)
- MNI on "Why the RBA's Policy Bias Remains for More Easing"
- Greece and lenders agree on primary budget targets for 2015/16/17 & 18
- Japan data - July M2 money stock +4.1% y/y, M3 +3.3% y/y
- Citi's weekly FX outlook ... if your a range trader your gonna love this
- ANZ Roy Morgan weekly Consumer Sentiment: 112.5 (prior 112.9)
- UK data - BRC Sales like-for-like for July: +1.2% y/y (+1.0% expected)
- New Zealand July Electronic card transactions, retail +0.4% m/m (expected +0.5%)
- New Zealand - July ANZ Truckometer: -0.3% (prior +2.0%)
- Greece, lenders agree on primary budget targets
- Trade ideas thread for Tuesday 11 August 2015
- NZ economy - WPAC says the tide has turned
- Google is creating a new company ... using all the letters of the Alphabet, sorta
OK, lets get the timeline straight.
Data from China this morning was encouraging for those on the lookout for stimulus. New lending for the month, for example, came in nearly double the median consensus estimate. The AUD was a beneficiary, popping above 0.7425 and then to 0.7440 briefly before running into a wall of selling.
The PBOC devaluation news then hit it hard, with a yuan devaluation for the fix at a 1.9% drop, the largest on record, dropping AUD/USD to around 0.7365/70 before stabilising a little. NAB business confidence and conditions data then hit the market, sending the AUD on another extended, tumble, before finding buying ahead of 0.7300 and settling sideways around just above 0.7310.
It wasn't all AUD action, though. EUR/USD lost some ground, as did cable, and the CHF against the USD.
USD/JPY was more choppy, trading higher to around 124.85 before coming back 20 or so points.
NZD was also sold heavily, down nearly a big figure. But it was the AUD that lost the most ground from its earlier highs today.
Regional currencies all hit hard, SGD, MYR, INR all hit lower
Oil is a little lower. Gold ticked a little higher initially, then had $12 or so cut out it before bouncing back above $1100 and remaining above there as I update.
