Asia Highlights, Thursday, 20 April 2017
- A generally subdued day, equities failing to hold gains as oil came under pressure, as did the CAD. Bond yields remained slightly higher however.
- Fed's Rosengren said backs shrinking balance sheet earlier and very gradually
- Fed Beige Book saw modest-moderate growth, modest price rises.
- Fed's Fischer said spillovers from policy divergence should be manageable.
Asia FX and News -
- CNBC: U.S. oil futures threaten to crack $50 per barrel, with just weeks to go before OPEC and other producers have to sign off on a new deal to hold down production.
- RTS: Japan's exports rose in March at the fastest pace in more than 2 years as increased shipments of car parts and steel signalled higher overseas demand.
- RTS: New Zealand's CPI finally hit the central bank's target mid-point of around 2 per cent annual growth in the first quarter, after more than a year of concerted effort to lift tepid inflation.
- BBG: The 11 remaining nations in the TPP talks will discuss moving forward with the deal at the APEC meeting in May, Japanese Finance Minister Taro Aso said
- Higher than expected New Zealand CPI released in early morning saw NZD/USD spike to a high of 0.7043 from sub 0.7000 levels, while AUD/NZD fell to a low of 1.0640 from >1.0700 levels.
- This meant that AUD/USD was pulled towards trend line support at 0.7488-90 again, though a small rebound was seen thereafter, both in AUD/USD and AUD/NZD.
- Still, medium sized stops at sub 0.7480 levels means that another try lower is likely on the day.
- Positive NZ CPI means that NZD is fast becoming the commodity currency of choice, with USD/CAD still trading in a lofty manner, despite giving up some gains on the day, falling from an overnight high of 1.3490 to 1.3474, as NYMEX remained supported above $50.
- Meanwhile, GBP/USD traded to resistance turned support of 1.2770-75, and EUR/GBP rose to a corresponding high of 0.8388, though a slight retracement was since seen.
- Both USD/JPY and EUR/USD traded in a supported manner. EUR/USD kept above 1.0700 while USD/JPY surmounted 109.
NZ: CPI (Q1) 2.2% y/y (Mkt: 2 Prev: 1.3)
JP: Customs Cleared Trade (Mar) 614.7 JPY bn (Mkt: 608.0 Prev: 813.5R)
AU: NAB Business Conditions and Confidence (Q1) 6 (Prev: 5)
NL: Consumer Confidence (Apr) 26 (Prev: 24R)
NL: Consumer Spending (Feb) 0.8% y/y (Prev: 2.7)
Still To Be Released -
06:00 GMT - DE: PPI (Mar) 4cast: % m/m (Mkt: 0.2 Prev: 0.2)
06:00 GMT - DE: PPI (Mar) 4cast: % y/y (Mkt: 3.2 Prev: 3.1)
06:00 GMT - NO: C2 Credit Growth Indicator (20th-30th) (Mar) % y/y (Prev: 5.1)
06:30 GMT - NL: Unemployment (sa) (Mar) % (Prev: 5.3)
10:00 GMT - UK: CBI Industrial Trends (20th-25th) (Apr) % bal (Prev: 8)
12:30 GMT - US: Initial Claims (42840) 4cast: k (Mkt: 240 Prev: 234)
12:30 GMT - US: Philadelphia Fed Survey (Apr) 4cast: index (Mkt: 26 Prev: 32.8)
13:00 GMT - BE: BNB Consumer Confidence (Apr) (Prev: 0)
13:00 GMT - EU: Consumer Sentiment (Apr P) 4cast: index (Mkt: -4.8 Prev: -5)
14:00 GMT - US: Leading Indicator (Mar) 4cast: % m/m (Mkt: 0.2 Prev: 0.6)
Events & Auctions:
n/a GMT - EU: EU's Mogherini Speaks in New Dehli
n/a GMT - SE: Riksbank's Ingves & Jansson
n/a GMT - WLD: IMF and World Bank Hold Spring Meeting in Washington (23rd)
01:00 GMT - AU: Bloomberg April Economic Survey
03:35 GMT - JP: 3mth Bills auction
03:45 GMT - JP: 20yr Bond auction
03:50 GMT - FR: Bond auction
05:30 GMT - UK: Bond auction
08:30 GMT - ES: Bond auction
09:50 GMT - FR: I/L Bond auction
10:30 GMT - UK: BoE Carney Speaks in Washington
15:00 GMT - DE: Finance Minister Schauble Speaks in Washington
17:00 GMT - DE: Bundesbank's Dombret Speaks in New York