Forex news for Asia trading Tuesday 10 November 2015

  • Comments from PBOC governer driving offshore yuan higher
  • France's Le Pen likes UK PM Cameron's Brexit bargaining chip
  • MS Feldman says BOJ to hit inflation target around the end of 2016 - here's how
  • NAB forecasts for the Australian dollar and the RBA
  • China deflation ... "This requires the PBOC to engage in more aggressive policy easing"
  • China press: Some 2016 investment projects have been moved forward to this year
  • China October CPI: +1.3% y/y (+1.5% expected) % PPI -5.9% y/y (-5.9% expected)
  • PBOC sets yuan reference rate for today at 6.3602
  • Japan PM Abe says he will cut corporate tax more than planned in 2016
  • Australia - NAB Business Conditions (October): 9 & Business Confidence 2
  • Australian housing finance for September. Home loans 2.0% m/m (expected 0.0%)
  • Moody's sees China GDP growth this year 'just under' 7%
  • PBOC governor says Beijing to improve eco policy coordination
  • UK data - BRC Like-for-like sales (October): -0.2% y/y (+0.8% expected)
  • Japan data - BoP Current Account Balance and Trade Balance BoP Basis
  • Japan economy minister Amari: Want to cut corporate tax below 30%
  • OECD: Australian growth to slow on China and lower household spending
  • Goldman Sachs says the lift in Australian business conditions may not be genuine
  • Australia - ANZ weekly Consumer Sentiment: 116.6 (prior 115.2)
  • Gundlach at it again: Higher interest rates may cripple stock market
  • NZ data - Card spending for October, retail: 0.0% m/m (exp. +0.3%)
  • IMF says NZD is 'somewhat overvalued'
  • Trade ideas thread for Tuesday 10 November 2015
  • NZ data - ANZ Truckometer for October: +0.9% (prior was +1.7%)

Subdued forex ranges continued during the Asian session.

The session began with New Zealand data (truckometer), news (IMF), and data again (card spending), which saw NZD /USD move toward overnight lows (actually slightly lower) and then settle sideways. We also got REINZ house data from New Zealand today, showing a dip in sales and prices on the month.

Weekly consumer sentiment data from Australia barely moved things, as did the following Japanese data.

More substantive data from Australia a little later; business confidence and conditions, along with housing finance ... but little AUD response. As I update AUD/USD is barely changed on the session after a 15 or so point range. A similar story for USD/JPY with a similar range magnitude.

EUR/USD and cable, too, are little changed after narrow ranges, while USD/CHF has managed a few ticks higher.

Gold eked out a small gain, while oil is maybe up a few cents.

Overnight falls on US stocks washed through local equities here today, sending some lower. There was some chatter that a few large fund houses in China were being investigated by the CSRC yesterday, which seemed to weigh on Chinese equities early too, but as I update the Shanghai Composite has recovered from early weakness..

Regional equities with Shanghai closed for the lunch break:

  • Shanghai +0.42%
  • Nikkei -0.18%
  • HK -1.19%
  • ASX -0.72%