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ForexLive Asia FX news: Waiting on the Fed

Forex news for Asia trading Wednesday 14 December 2016

A year ago (give or take a few days) the Federal Reserve began its rate hike cycle. The (nearly unanimous) expectation is we get another rate hike from them today (it's a very slow cycle). Asian forex markets thus adopted very much a wait and see approach, with sideways movement pretty much the order of the day.

We didn't get much in the way of fresh news, but there were a few data points to heed.

Australian consumer sentiment for November (the monthly measure from Westpac) came in at a big tumble, down 3.9% m/m and to its lowest since April. More detail:

AUD did little on the data.

The Bank of Japan Tankan for Q4 was next, with a good result for Japan Inc. (i.e. the big manufacturers; the diffusion index for this lot was up for the first time in a year and a half and at its highest since this time last year). Apart from this, though, the survey was patchy and lacklustre - with mainly misses for other measures. This included big firms cutting their expectations for capital expenditure this fiscal year (ends in March 2017); estimates of +6.3% in the prior survey down to +5.5% in today's.

The Bank of Japan were active in JGBs today, looking to (& succeeding in) pushing down long-bond yields:

USD/JPY tracked along in a 30-odd point range today and is net little changed on the session.

EUR and CHF both gained a few points against the big dollar. Cable dribbled a few points lower. None of these movements were much at all.

AUD was a few points to the worse, while NZD buyers saw NZ/US and NZD/AUD a little higher on the session.

Gold ticked a dollar or two to the better, oil dropped a little upon the release of the API stock survey for the week (an unexpected build) and hasn't managed much of a recovery

Regional equities:

  • Nikkei +0.10%
  • Shanghai +0.06%
  • HK +0.60%
  • ASX +0.64%

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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