Forex News
Mild recovery in risk currencies in Asia ahead of Easter break
The overall risk appetite in Asia Thursday was dictated by the Shanghai Composite Index, which pushed into the black during early trading and hence EUR and risk currencies were squeezed a touch higher.
RBA unchanged – a May cut looks likely, subject to inflation data
Japan’s monetary base fell for the first time in more than three years in March, triggering some volatility in USDJPY early in the Asian session. The kneejerk reaction was to sell USDJPY as the possibility of no further easing from the Bank of Japan gained momentum and the pair slumped to an 81.55 low.
EUR Analysis
EUR/USD closed in NY at 1.3335 with rate marked up to $1.3358 into the Asian open as risk was given a general boost by the weekend release of surprisingly strong China PMI. Rate extended the react rally before stalling at Friday’s high of $1.3377 (Europe).
Risk higher as Asia mulls strong headline PMI data from China
Risk appetite exploded higher at the start of Asian trading today after China announced some stellar (or should we say unbelievable!) PMI data for March yesterday. The official China PMI rose to 53.1 from 51.0 (50.8 expected) and was the fastest pace of expansion in 12 months and the fourth consecutive month above the key […]
USDJPY trades lower in Asia on JPY repatriation/month-end themes
There was some welcome news for the Bank of Japan early in the Asian session as core inflation rose for the first time in 5 months in February. National CPI ex-food rose 0.1 percent y/y, higher than forecasts and above last month’s 0.1 percent decline.
AUD selling still featured in today’s Asian session
The AUD remained the market mover during the Asian session with steady selling in the AUDJPY cross (probably linked to JPY repatriation flows into financial year-end) sending the AUDUSD below overnight lows, but only marginally so. Profit-taking at lunchtime has since led to consolidation but we still remained below the 1.04 mark.
RBA upbeat on stability of local banking system; AUD top-heavy
The RBA’s Financial Stability Overview painted a quite upbeat picture of the local banking system and, in a similar vein to member Debelle’s speech yesterday, offered assurance that the system was well-capitalized and well-positioned to meet the requirements of the Basel III accord.
Bernanke puts a new sets of skids under the dollar, for now
Early in the Asian session RBA’s Debelle gave an additional prop to the AUD’s revival overnight by saying that the AUD is in the “right balance” relative to the (near record high) terms of trade while adding that Australia’s mortgage rates are about where the central bank wants them to be.
Small comfort for the NZD as trade data improves in February
The Asian session kicked off with the release of New Zealand’s trade data for February, which showed a welcome rebound from January’s disappointment. The balance reverted back into surplus with +NZ$161 mln print, slightly better than the consensus +NZ$153 mln, compounded by an upward revision to January’s deficit to –NZ$159 mln, which gave the NZD […]
FX Daily Strategist: Europe
FX Facts Fit The Figures Thursday was something of a rarity in FX markets in that there was no need for journalistic licence in fitting facts to figures. Moves in most of the G10 currencies could credibly be attributed to idiosyncratic economic news.
FX Daily Strategist: Europe
Weaker US housing data sees USD stronger? FX market still struggling for direction FX markets on Wednesday continued to reflect a lack of conviction. Existing home sales disappointed, but despite the resulting rally in US Treasuries, USD finished stronger against most G10 currencies, gaining most against AUD – although, as would be expected given the […]
AUD pushed lower as China flash PMI data slides further
Signs of weakening global growth were reflected in today’s flash estimate of China’s manufacturing PMI data for March, which slid to 48.1 from 49.6 last time. Note this is the first “real month” of data this year now that the Lunar New Year distortions are out of the way and is not suggesting a rosy […]