Forex news for Asia trading Wednesday 15 June 2016

  • JPM quant: fundamentals downside risk, but central banks continue to dominate
  • Japan govmt. spokesman says there are volatile moves in financial markets
  • Japan JGBs hit new record low yields, China onshore yuan to 5 year low
  • PBOC sets yuan reference rate for today at 6.6001 (vs. yesterday at 6.5791)
  • Latest Brexit poll on wires: 41% Remain, 45% Leave (BMG poll)
  • Australia - Westpac Consumer Confidence for June -1.0% m/m (prior +8.5%)
  • More Brexit referendum implications ... Calling the SNB's bluff on CHF strength
  • Australia - Weekly Consumer Confidence: 116.4 (prior 116.8)
  • "They’ve turned into the 'Zombie Fed.'
  • Moron Osborne and his Brexit tax hikes
  • NZ Q1 BoP Current Account Balance: 1.306bn (expected 0.96bn, prior -2.614bn)
  • Latest Brexit poll - Racing pigs predict the winner. Yes. Pigs in a running race.
  • It's the hump day trade ideas thread - Wednesday 15 June 2016
  • UK press (Times): Osborne to raise taxes if voters go for Brexit
  • Latest Brexit poll - Sun newspaper reports Comres shows Remain with 1% lead
  • NZ May house data - REINZ report median price up 10% y/y
  • MSCI announce they'll delay including China A shares in emerging mkt index
  • Oil traders - API data shows a surprise build in inventory
  • Larry Summers: Fed economic hope is misguided (and so are its policies)

More Brexit polls during the late NY day/early Asia, but not impacting on GBP to the extent that they have been. GBP traded tightly range bound for the first few hours and has since edged a little higher into the Tokyo afternoon. UK Chancellor Osborne did a dummy-spit, threatening tax hikes if the 'leave' side prevails in next week's referendum.

EUR and CHF lost a few points early but have both since returned to mid-range or so levels.

USD/JPY has gained a few points, topping around 106.30 and settling just down from there as I update.

AUD/USD and NZD/USD fell a few points each during the Tokyo morning but have both rebounded well to chart new session highs as I update. The pattern is similar to local equities, China and Japan indices both on the bounce (a little anyway) today.

There was some excitement late NY / very early Asia with news from MSCI that China A shares had yet again been not included in the Emerging Market Index. Early selling of Chinese stocks was soon reversed, anyone who thought the MSCI decision was a surprise was well behind the curve, with posts yesterday on what to expect putting the likelihood of inclusion at less than 10%. More on the MSCI decision here.

Oil traded heavily after a late US time private survey of inventories showed a surprise build in stocks (against consensus expectations for a draw). The official inventory data comes out during the US morning on Wednesday, and the history of this private survey picking the results is patchy at best.

Gold traded quietly sideways for the session here.

JGBs hit new record low yields again today. And the People's Bank of China set the USD/CNY mid-point reference rate at a fresh low since January 2011, at 6.0001.

Your move, Janet.

Regional equities:

  • Nikkei +0.79%
  • Shanghai +1.53%
  • HK +0.43%
  • ASX -0.39%

More: US politics may come into focus during the US day as Clinton wins big in the final Primary but Sanders still has not conceded, and, more controversy from Donald Trump, he gave a Tuesday evening speech in which he referred to members of the American military skimming U.S. government cash