Forex news for Asia trading Tuesday 27 October 2015

  • 6 guys steal more than 120,000 USD in FX heist
  • Singapore central bank says stronger easing than done in Oct was unwarranted
  • Mounting bad loans are running down Chinese banks' capital buffers
  • A pre- FOMC meeting refresher
  • Hilsenrath: Pressure is on the Fed and Yellen to better manage market expectations
  • PBOC has cut the 7-day reverse repo rate by 10bps
  • PBOC's Ma Jun says interest rate & exchange rate remain the focus of financial reforms
  • China - Industrial profits for September: -0.1% y/y (prior was -8.8%)
  • Preview of the Federal Reserve FOMC meeting from RBS
  • PBOC sets USD/CNY mid-point today at 6.3494
  • US Navy now within 12 nautical miles of China's man-made islands
  • China Eco Daily: Economy won't have a hard landing in the short term
  • Preview of the RBNZ meeting from ASB - on hold
  • NAB shares halted, Nippon Life may buy into life insurance (AUD/JPY implications)
  • Japan data - September Services PPI +0.6% y/y (vs. expected +0.6%)
  • Nomura preview of the RBNZ ... "on hold". And they like short NZD.
  • Bild report that Deutsche Bank expects debt cut for Greece (and more)
  • China Daily: China should set GDP growth target at 6.5% for 2016-2020
  • More - PBOC advisor sees room for further easing in monetary policy
  • Australia data - ANZ weekly consumer confidence: 113.4 (prior 113.3)
  • Australian PM Turnbull rejects call for moratorium on coal exports
  • NZ data - September trade balance: -1222m (expected -825m)
  • NZD traders - a quickie preview of the RBNZ meeting this week
  • Spanish PM Rajoy: Corruption more damaging than economic crisis
  • Trade ideas thread for Tuesday 27 October 2015
  • French finmin Sapin: says ECB monpol is appropriate

Early action in Asia today on the New Zealand trade balance data. Another big deficit this month, with stronger than expected imports reflecting an economy that is still on the strong side offset by weaker than expected exports. The NZD/USD dipped briefly toward 0.6750 but bounced back 20-odd points just as quickly.

A story then from Australia confirming the sale of a National Australia Bank insurance unit to a Japanese company (see bullets, above) suggested more than 2 billion AUD/JPY to be bought ... but of course the transaction was well complete by the time the story hit the press and after a small shuffle sideways AUD/JPY fell. Yen strength was widespread, though, with yen crosses falling away pretty much across the board.

The yen strength coincided with sharp falls on Chinese equity markets, along with some weakness in the CAD and NZD also. A number of factors suggested as potential catalysts including the US Navy sailing within 12 nautical miles of the new islands China is building in the South China Sea, and also China unemployment figures crossing screens. No clear smoking gun, though.

EUR was pretty much unbothered by the drama, EUR/USD has gained on the session ... not my much admittedly. Cable, too, a few points higher on the session, while the CHF gained a little against the USD also.

Oil was weaker on the session while gold is barely changed after being slightly higher.

Regional equities:

  • Shanghai -1.82%
  • Nikkei -0.93%
  • HK -0.81%
  • ASX -0.12%