Forex news for Asia trading Tuesday 21 April 2015

  • Hong Kong Buys $5.85 Billion this month to defend currency peg
  • JP Morgan on RBA Minutes
  • Citi says RBA seems to be losing faith that cutting rates can help any more, but will cut in May anyway
  • Analyst warns that the BOJ will taper next year, send yields soaring
  • Former ECB head Trichet: Sees 1% growth for Europe next year
  • NAB says Australian House price growth to slow next year
  • China business confidence measure to lowest since 2009
  • Some USD strength across the board
  • RBA April meeting Minutes: Further policy easing may be appropriate in period ahead
  • The RBA Minutes aren't the only ones coming up ...
  • Comments from Fed Dudley overnight
  • Australia - ANZ Roy Morgan weekly consumer sentiment: 108.8 (prior was 109.8)
  • PIMCO: RBA in 'temporary pause in a protracted easing cycle'
  • The mystery of China's gold stash ... will it be revealed soon?
  • JP Morgan spots a "big hole" that is a substantial negative for US GDP growth
  • Overnight - RBA governor Stevens said AUD very likely to fall
  • Poll shows 62% of Japanese firms do not plan to raise prices this financial year
  • Canadian dollar. Hot or not? JP Morgan says its time to sell USD/CAD

There was a little USD strength coming through in Asia today, with EUR, GBP, CHF all drifting a little (only a little) lower.

USD/JPY showed more vigour, trading higher in the Tokyo morning to add 35 or so points from late NY lows. The nomination for appointment of a 45-year Toyota executive to the BOJ board was viewed as a yen negative - if Kuroda wants more easing the new guy is unlikely to stand his way. Toyota has been a big (if not the biggest) beneficiary of BOJ easing.

AUD and NZD were both weak. AUD continued lower in the wake of Governor Stevens' comments overnight. The Minutes of the April board meeting were published today, and while there wasn't much in them to indicate when the next cut might come, the market was much more focused on the fresher comments from Stevens. AUD/USD filled in the bidders around 0.77 and then shifted lower on stops below the figure.

AUD and NZD are both only barely above session lows as I update.