Forex news for Asia trading Tuesday 17 January 2017

  • Japan - Final industrial production for November: +1.5% m/m (flash was +1.5%)
  • Chinese official fired after calling Mao Zedong a devil (Pro tip: Don't call Mao a devil)
  • USD weakens a tad, even cable getting a bid! ;-)
  • Also, Federal Reserve speakers due Tuesday (who & times)
  • WEF speakers Tuesday include China's President, SNB's Jordan (scheduled times)
  • World’s fastest-growing large economy - the two-horse race with a new leader
  • New year, new AAA ratings hand-wringing in Australia. Srsly, chill out.
  • Heads up for NZD traders - dairy auction coming up during London time
  • PBOC sets USD/CNY central rate at 6.8892 (vs. yesterday at 6.8874)
  • OPEC Sec Gen Barkindo forecast stability to return to oil markets this year
  • Australia bond news ... tomorrow's auction will see strong demand
  • Singapore data: Exports rose more than expected y/y in December
  • Australia data - (Nov.) Home loans +0.9% m/m (expected +0.3%, prior -0.8%)
  • Ex-PBOC adviser does not fear yuan float - bring it on!
  • GBP a touch lower in early Asia- May to announce full EU exit, not 'half in-half out'
  • UK's May ready to announce Britain will leave EU single market
  • RBA's Harper in the press: "I’d like to see the (AUD) rate weaker "
  • Australia - ANZ / Roy Morgan Weekly Consumer Confidence Index: 119.3 (prior 120.1)

The big focus during London on Tuesday will be the milk price auction.

I'm kidding!

UK PM Theresa May will announce that Britain is leaving the EU. She will rule out partial or 'associate' membership of the EU, "anything that leaves us half-in, half out"

  • UK's May ready to announce Britain will leave EU single market

  • GBP a touch lower in early Asia- May to announce full EU exit, not 'half in-half out'

The story on what May will announce (no ifs or buts, it's a "Brexit is Brexit", folks) hit prior to the Tokyo open. The GBP response was muted, to say the least. It dribbled a few points lower, hung around for a look at 1.2020 and thereabouts then managed to edge itself higher in following hours.

The better bid cable was also accompanied by weaker USD pretty much across the board. EUR, AUD, NZD, CHF have all moved higher against the USD in Asia today. Gold, too, and oil a few cents to the better also.

USD/JPY marched to its own beat today, trading down to circa 113.90 in the Tokyo morning before spurting back above 114 (highs just shy of 114.30). As the broader USD weakness played out USD/JPY did drop back again, but its move to its earlier low lagged somewhat. Having said this, its barely above sessions lows as I update (OK, no it isn't anymore, through them and lower). Final November Industrial Production data has just hit, coming in-line with the preliminary data and confirming its best m/m gain in 5 months (better global demand being cited for export and output gains).

Late ... As I update the USD is weakening further, AUD, NZD, EUR, Chf all moving solidly higher. Cable is now lagging somewhat (sellers around 1.2080 holding):

Regional equities:

  • Nikkei -0.97%
  • Shanghai -0.50%
  • HK +0.44%
  • ASX -0.87%

Still to come:

  • Federal Reserve speakers due Tuesday (who & times)
  • WEF speakers Tuesday include China's President, SNB's Jordan (scheduled times)
  • Heads up for NZD traders - dairy auction coming up during London time