Forex news for Asia trading Tuesday 9 February 2016
Japan today:
- Japan's Asakawa said he was watching daily FX moves carefully for excessive volatility
- Warning shots fired in Hong Kong protests
- Nikkei heads off for lunch down near 5%
- ForexLive - your help is needed. Please advise the BOJ what to do now.
- Jawbone all you like, says analyst ... its not effective in risk-off environment
- USD/JPY at 115 - Is this the 'line in the sand'?
- Japan econ minister: External factors are main reason for recent yen move
- Japan money supply for January: M2 +3.2% y/y (expected 3.1%)
- Warning shots fired in Hong Kong protests
- NZ Fin Min: Sees no reason to rewrite agreement with the RBNZ despite inflation fail
- Earthquake reports from NZ (shaking Wellington)
- Australia - Business conditions: 5 (prior 7) & Confidence 2 (prior 3)
- UK data - BRC Sales (like for like) (January): 2.6% (expected 0.3%)
- FX manipulation? - Hackers use malware for huge FX rate move
- IMF on NZ: RBNZ should stand ready to ease further if necessary
- Australian data - NAB Business Confidence and Conditions - what to expect
- New Zealand - QV House prices for January 12.6% y/y (prior +14.2%)
- Australia - ANZ Roy Morgan Weekly Consumer Confidence Index: 111.4 (prior 111.2)
- Goldman Sachs on recession fears - chill out!
- Bank currency trader layoffs make the news!
- Trade ideas thread for Tuesday 9 February 2016
- NZ data - Truckometer (January): -4.3% m/m (prior +2.6%)
The sell-off in the 'overnight' markets continued in Asia.
The day was probably best encapsulated by the move in 10-year JGBs. The Japanese government bond dropped to near 0%, then to 0% ... and then below. The 'flight to safety', 'risk off', 'get me out of here' trade, call it whatever you want, was the theme for the session
The Nikkei move was unrelenting. It opened near 4% down, then dropped. It closed for lunch off nearly 5%. Post-lunchtime trading resumed and it dropped again.
USD/JPY didn't buck the trend, it slid under 115, put in an anemic bounce, dumped under 114.80 and 114.50 ... put in an anemic bounce, then plunged again.
I think you get the picture, yeah?
'Risk' assets elsewhere headed south also; AUD, NZD all lower.
USD/CHF slipped away after early struggle to stay above 0.9860, but it wasn't where the action was. And no one sent cable the memo - its basically flat as I update.
EUR/USD gained above 1.120 but hasn't managed to sustain (so far as I update, at least).
While all this was going on movements in oil were subdued. And China remains on holidays. The two biggest drivers for the first month or so of the year AWOL today.
Gold is more or less unchanged on the session.
'News' ...?
Australian business conditions and confidence for January slipped a little lower - hardly surprising given the turmoil through the survey period (January 27 - February 2) for this month's indicator. Check out the link for more detail (above); the survey was a little softer but not overly poor. It was external developments that weighed on the AUD today.
Regional equities ... China and HK still closed for holidays. US S&P500 futures were down 1% on Globex:
- Nikkei -5.22%
- Shanghai Closed
- HK Closed
- ASX -2.79%
I need a cup of tea.
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.