ForexLive Asia FX news: Late NY USD drop maintained in Asia

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Thursday 13 April 2017

The big news from the US afternoon was Trump saying the USD was too high, amongst other things: ForexLive Americas FX news wrap: Trump flexes his jawbone

Asia headlines:

USD/JPY added to its losses as the Tokyo morning got underway, but the extra move was small, under 108.80 but as I update not carrying on too much lower.

EUR/USD popped 1.0670 but also little further from there. USD/CHF, similar. GBP/USD was a better performer, it managed to head to circa 1.2570, perhaps helped by some data from the UK (see bullets above).

NZD/USD edged a little higher against the USD also.

But it was AUD that shone, although it took a super jobs report (employment change coming in 3x expected!). Other indicators of the labour market have been on the improve but its only today that the official data has seemed to show a catch up. Note that the headline results is 'seasonally adjusted', the Australian Bureau of Statistics urge us to look at the 'trend' data, which also showed growth but at a more subdued pace. I post the 'trend' results into my summary of the report each month, so check it out for more (see bullets above). The RBA flagged some concerns with housing borrowing today in their Financial Stability Review.

AUD/USD popped on the data, from circa 0.7540 to (as I update) now above 0.7575.

China trade data (March and Q1) was next, a strong growth in both exports and imports reported. The People's Bank of China injected liquidity into money markets today, both through OMOs (first time in 14 days) and through the pledged supplementary lending facility. USD/CNY was set by the Bank (reference rate) much lower than Wednesday (i.e. yuan stronger against the USD).

Regional equities:

  • Nikkei -0.97%  
  • Shanghai +0.10%
  • HK -0.0.7%
  • ASX -0.83%

Still to come: