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ForexLive Asia FX news wrap: China yuan devaluation hits 7th day in a row today

Forex news for Asia trading Tuesday 15 December 2015

A light news flow day in Asia relieved by some scheduled releases from Australia and New Zealand and day two of the Bank of Japan Tankan (inflation expectations):

The NZ and Aust. news did not depart from from what was expected and provided little in the way of volatility. The government budget updates from the two countries didn't surprise anyone and were greeted in a subdued fashion. Moody's and S&P comments on the Australian MYEFO were sanguine.

RBA December Minutes reinforced the view of a central bank becoming more comfortable with how the economy is developing. They are not turning cartwheels at Martin Place (I'm guessing on this, who knows what they actually do get up to in between meetings) but the outlook contained in and between the lines in the Minutes are of a bank very much on hold. There is no sign of a rate cut on the horizon. nor a hike, for that matter.

Other items on the news were minor, though the People's Bank of China devalued the yuan against the USD for the 7th day in row today. And not by a small amount, again.

Cable had a jump to (briefly) above 1.5180 in the Sydney morning but has settled back around a still positive for the day at 1.5160 and thereabouts. USD/CHF lost a few points from late NY. EUR/USD ticked 30 or so points to the stronger. USD/JPY was also slightly higher but is near enough to unchanged now as I update, while EUR/JPY gained as is around session highs just above NY highs.

Gold dipped to a fresh low from the overnight but has retraced a few dollars. Oil is more or less flat.

Regional equities with Shanghai closed for the lunch break:

  • Nikkei -1.06%
  • Shanghai +0.09%
  • HK +0.45%
  • ASX +0.07%

Still to come:

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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