ForexLive Asia FX news: Fed’s Fischer sees no taper tantrum repeat (so far)

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Tuesday 18 April 2017

Federal Reserve Vice Chair Stanley Fischer spoke during the US evening. Perhaps most noticeably he said it appears to be less likely there will be market disturbance around the discussion of the Federal Reserve reducing the size of its balance sheet than there was in the case of the 'taper tantrum'. Also of note during the session were the comments from US Treasury Secretary Mnuchin on the likelihood of further delays to any tax reforms in the US and also his elaboration on President Trump's comments on the USD last week. Mnuchin's comments hit during the US afternoon but interest in them carried on through the Asia early morning.

More on Fischer and Mnuchin in the bullets, above.

Other news and focus today centred on China house prices (March data; you'll never guess ... higher) and Minutes of the Reserve Bank of Australia April meeting. More on both of these in the bullets above also.

For the currencies, the Australian dollar was a big loser, sliding ahead of the Minutes and a little more after. Buyers were present but all they managed to do was to get filled in, macro names the notable sellers according to market chatter. As I update option-related bids are in good size for now, halting the AUD decline ahead of 0.7550/55 for now at least. A break under 0.7550 should prompt another round of sellers.

USD/JPY ticked above 109.20 early in Tokyo but has since slipped back under 109.00. EUR/USD edged above 1.0650 but with no follow-through and is a few tics under as I update. Awaiting Europe/UK reopening after the Easter break in those centres. Nervousness on French elections is becoming greater.

USD/CHF slipped a few points net on the session (perhaps related to Mnuchin's remarks in the FT on the dollar). Cable is little net changed on the session. NZD/USD ditto, with a GDT auction tonight (previews in bullets above) likely as the next specific driver for it.

Gold is little changed on the day, oil a few cents softer but not a lot in it.

Regional equities:

  • Nikkei +0.33%  
  • Shanghai -0.11%
  • HK -0.92%
  • ASX -1.17%