Forex news for Asia trading Wednesday 25 May 2016
- Aussie press: ANZ says fading AAA allure could send $A towards US50¢
- BOJ's Kuroda: Japan's economy has continued to recover moderately (drink)
- China to open up its commodity futures market to offshore investors
- Westpac MNI China Consumer Sentiment Indicator (May): -3.1% m/m (ICYMI)
- Australia - Construction Work done for Q1: -2.6% (expected -1.5% prior was -3.6%)
- PBOC sets USD/CNY central rate at 6.5693 (vs. yesterday at 6.5468)
- Fed's Bullard on CNBC: December dots didn't reflect weak early 2016 data
- MS says the RBA will cut the cash rate all the way to 1%
- MAS deputy says outlook for Singapore core inflation remains unchanged
- Euro zone officials say Ministers, IMF reach agreement on Greek debt relief
- AUD and NZD orderboards
- BOJ Governor Kuroda to appear in Japan's parliament today
- Gundlach: Fed officials "dying to raise rates" but all that matters is Yellen
- New Zealand trade balance for April: 292m (expected 25m)
- Japan press reports Abe will delay the sales tax hike
- The Even Steven Brexit poll: YouGov finds 41% for in, 41% for out
- Morgan Stanley like the USD - 'expect the advance to continue from here'
- Trade ideas thread - Wednesday 25 May 2016
- Oil - American Petroleum Institute (API) inventory data: Draw 5.14 million barrels
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'Risk' was the word on everyone's lips today in Asia, with regional stocks looking up & yen looking down (for a while anyway). USD/JPY traded up above 110.10 but has since dipped back under 110.
NZD rose early, gaining after better than expected April exports reported, another indication the NZ economy is alive and kicking. AUD was weaker, coming off after Q1 Construction Work data missed on its estimates. The data is an input into tomorrow's Capex release and has sounded a warning of a worse than expected result. Still, the dip was short lived, with both NZD/USD and AUD/USD retesting session highs afterwards and the AUD popping back above 0.7200 as I update. Sellers are up ahead gathered around 0.7220. Mike will have an updated order book into the London morning.
More funds for Greece were announced after the EU/IMF/Greek meeting. The response from EUR was like waking a sleeping giant ... it took a long time but EUR/USD finally edged its way 15 or so points higher. CHF gained some ground against the USD while EUR ticked higher, so maybe it wasn't the Greek deal at all. Cable is a tickle lower on the session
The PBOC took the opportunity of US dollar strength to ratchet the USD/CNY to a 5-year high (i.e a 5-year low for the onshore yuan). If the talking heads from the Federal Reserve are going to send out imminent rate hike messages the PBOC is more than happy to contribute to the inevitable USD strength. Take that Ms. Yellen!
Oil has traded higher on the session, carrying on its US time zone strength, helped by a larger inventory draw than expected announced by API at the end of the US day.
Gold is little changed after dipping under 1225 early before a bounce to settle now (as I update) back around 1228.50.
Regional equities:
- Nikkei +1.50%
- Shanghai +0.27%
- HK +2.52%
- ASX +1.76%
More: I'll spare you the standard 'Risky Business' film clip (sorry, ladies)... great tune though!
