Forex news for Asia trading Wednesday 4 May 2016
- Japan ex-MOF official: Japan lacks G-7 support for forex intervention
- Australian April new vehicle sales +7.2% y/y
- China's NDRC: Housing inventory high; Downward pressure on investment into economy
- USD still ticking higher
- Bloomberg: $571 Billion Debt Wall That Points to More Defaults in China
- People's Bank of China sets yuan reference rate at 6.4943 (vs. yesterday at 6.4565)
- Meanwhile, just over the fence ... Sanders projected Democrat winner in Indiana
- NZ data: ANZ Commodity Price index for April: -0.8% m/m (prior -1.3%)
- Fed's Lockhart (more again): Fed not behind curve on inflation
- US politics - Ted Cruz to announce he is dropping out of the race
- Fed's Lockhart Brexit comments highlighted as June Fed hike impediment
- New Zealand QV House Price Index (April): 12.0% y/y (prior +11.4%)
- More from Fed's Lockhart: Some encouraging data coming out of Europe
- Australia - Services PMI (AiG Performance of Services Index): 49.7 (prior 49.5)
- UK Data: April BRC Shop Price Index -0.3% m/m and -1.7% y/y
- Donald Trump projected to win Republican Primary in Indiana (NBC, CBS, CNN)
- Fed's Lockhart: Ambivalent on a June FOMC rate hike
- NZ Q1 jobs data - Unemployment rate: 5.7% (expected 5.5%)
- AUD and NZD orderboards
- Sharp USD/JPY move above 107
- WSJ: Chinese authorities warning economists, analysts, reporters not to be bearish
- Trade ideas thread for Wednesday 4 May 2016
- Oil - American Petroleum Institute (API) data - Inventory build 1.3mln barrels
- More advice for the BOJ: "Time to Be Bold, Mr. Kuroda"
USD/JPY got us off to a flying start today. It edged higher, carrying on its overnight strength, before bursting through 106.80 and rapidly toward 107.50! It did so at one of the thinnest liquidity times of the 24-cycle with stop-losses the main factor (although there were plenty asking if it was some sort of intervention - but I hear not).
The PBOC yuan setting today (the biggest devaluation of the CNY against the USD since August of last year) prompted another jump in USD/JPY, back above 107.10.
USD strength was prevalent pretty much across the board, with EUR, CHF, GBP, NZD and AUD all extending on their overnight lows
Gold, too, lost ground, back to 1280 and surrounds.
Data from the American Petroleum Institute early in the session saw oil gain some ground but its given it back.
News and data: NZ unemployment moved higher in Q1, but other details of the results were more positive. Comments from the Fed's Lockhart had little impact. Bernis Sanders on the Democrat side and Donald Trump on the Republican took wins in the Indiana primaries. Ted Cruz dropped out of the race.
- Nikkei - Japan closed today, will reopen on Friday
- Shanghai -0.32%
- HK -1.22%
- ASX -1.07%
More: A July 2 election is all but confirmed in Australia. Trump will not win it ;-)