Forex news for Asia trading Monday 25 January 2016

Monday:

  • Kuwait plans a new $100 billion sovereign fund
  • China - Xinhua warns yuan sellers , you're going to "suffer huge losses"
  • More on Japan December trade balance data - crude oil imports lowest since 1988
  • Australian stock exchange sold (no, not that one) to US group
  • China - Deutsche Bank's 4 reasons for the yuan to halt or slow its decline
  • ASB RBNZ preview: January ... is a little too soon
  • UK Chancellor Osborne secures permanent 'brake' to block EU legislation
  • Look ahead to Friday and the BOJ meeting - preview from BoA/ML
  • The ill omens pointing to a US recession "have aligned again". But ...
  • China stockmarket opening indications - Shanghai Comp to open up 0.6%
  • People’s Bank of China sets yuan reference rate for Monday at 6.5557
  • Timeline of China's steps to stabilise FX, stock markets
  • Australia - December Business conditions: 7 (prior 10) & Confidence 3 (prior 5)
  • Japan data: December trade balance surplus of Y 140.2bn (expected Y 117bn)
  • China AgBank scandal - Won't cause a liquidity crisis says China Securities Journal
  • Western Europe’s biggest petroleum producer: Economy not in crisis
  • Asia central bank meetings this week - RBNZ - early preview
  • Asia central bank meetings this week - BOJ - early preview
  • Weekend press: PBOC prioritizes strong yuan when managing liquidity
  • New week, new trade ideas thread! Monday 25 January 2016
  • Q4 - Bank lending to China's property market increase
  • ECB Governing Council member Knot says cheap oil helping euro area recovery
  • Iran starts it post-sanctions shopping list; Boeing, Airbus planes at the top
  • Monday morning Forex prices, 25 January 2016, early indications

Weekend:

  • What Morgan Stanley expects in the week ahead in forex
  • China to cut steel and coal output
  • New offshore yuan RRR rules go into effect today
  • The three dumbest words in trading
  • Michael Bloomberg mulls run for US President
  • The tao of risk vs. reward
  • Sad to have to say " I told you so": More from guest economist John Hearn
  • BOJ's Kuroda says he still sees a virtuous cycle in Japan's coporates and households

Yes, it was 'risk on' today in Asia, but only very cautiously. Oil mainly held its gains from late last week, which helped sentiment.

But as the headline to the wrap says, it was all very cautious.

Across the currencies, small ranges prevailed. USD/JPY ran into sellers ahead of 119 which well and truly capped it during the session. EUR/USD managed a 20 point gain, and EUR/JPY gained on the session also.

AUD and NZD benefited from the improvement in sentiment, but again it was all very careful. AUD/USD had an early Asian dip toward 0..6980 before adding on 40 points to be near session highs as I update, but net up around 20 or so points on the day. NZD/USD has added around 60 points from its lows.

Cable and CHF are both a little higher against the USD net on the session, as is gold.

A note on the Australian 'December' business confidence and conditions survey released today. The survey was actually taken in mid-January, so the 'December' moniker is inaccurate.

Regional equities joined the 'on' move:

  • Nikkei +1.19%
  • Shanghai +1.03%
  • HK 1.83%
  • ASX %1.71

Still to come ... its never too earlt for some previews:

  • ASB RBNZ preview: January ... is a little too soon
  • Look ahead to Friday and the BOJ meeting - preview from BoA/ML
  • Asia central bank meetings this week - RBNZ - early preview
  • Asia central bank meetings this week - BOJ - early preview