Forex news and economic trading headlines 23 August 2016
News:
- China's CBRC says the scale of rise in banking sector NPLs is "worrisome"
- PBOC gauges demand from financial institutions for 14-day repos
- Japan's Shirai says it will take many years to reach 2% inflation target
- AUDNZD finds a little support after post-Wheeler fallout
- European equity markets in fine fettle and reversing recent losses
- EURGBP supply helps underpin GBP pairs
- Forex is a funny thing, or at least it can be
- Nikkei 225 closes down -0.61% at 16,497.36
Data:
- Eurozone Markit mftg PMI Aug flash 51.8vs 52.0 exp
- Germany Markit mftg PMI Aug flash 53.6 as exp
- France Markit manufacturing PMI Aug flash 48.5 vs 48.8 exp
- UK CBI industrial trends orders Aug -5 vs -10 exp
- Switzerland trade balance July +CHF 2.93bln vs +CHF 3.51bln prev
It's been another fickle session which has seen the greenback hold its own but the euro give up some recent gains as PMI data disappointed and equities reversed yesterday's losses.
The session began with the US$ on the back foot again, a move that saw USDJPY dip below 100.00 to post 99.94 and USDCHF down to 0.9594. GBPUSD found a bid around 1.3140 and EURUSD looked perky around 1.1330.
Cue overall softer than expected headline EZ, German and French PMI flash readings for August and the rot set in for the euro. EURGBP capped at 0.8630 again to fall below 0.8600 and that lifted GBPUSD up to look at 1.3200 offers/res while EURUSD found itself in retreat from offers into 1.1355 that I had highlighted earlier.
GBPUSD had a further lift to 1.3211 as EURGBP looked at 0.8585 demand/support but after a couple of attempts to hold we've seen some general USD demand return sending cable back to 1.3178 and EURUSD to 1.1323.
USDJPY has looked underpinned but still finds yen demand capping rallies while USDCHF has clawed its way back up to 0.9625.
AUDUSD and NZDUSD had differing mornings given the AUDNZD fall after RBNZ gov Wheeler's hawkish-ish comments in Asia trading while USDCAD has been down n up n down again between 1.2880-1.2930 pulled around by oil price mostly.
European equity markets are extending session gains as I type and that's helping to cap the funding-ccy euro.
US Redbook, mftg PMI and new home sales all on the data slate to help stir things up.
