Forex - Asia Highlights - Wednesday, 14 March 2018

 05:24 (GMT) 14 Mar

  [Forex Highlights]

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Asia Highlights - Wednesday, 14 March 2018 (0100-YBNN-C01)

US Overview:

A soft CPI (before rounding at least) weighed on the USD, Trump's sacking of Tillerson adding to the pressure and ensuring equities more than reversed early gains. USTs saw modest gains. CAD was an exception to the softer USD story after dovish comments from Governor Poloz.

US Highlights:

- US Feb CPI +0.2% as exp, Ex Food and Energy +02% as exp.

- Tillerson replaced as US Secretary of Satte by Pompeo

- BoC Governor Poloz says economy has room to expand without fueling inflation.

US CPI came in on expectation but softer before roundings, the headline a particularly close call at 0.151% translated as 0.2% rather than 0.1%. The USD went offered on the release, helped by US President Trump sacking Secretary of State Tillerson. EUR/USD broke out of the barely 25 pip range ahead of the release to 1.2385 before a very modest dip. Buying resumed as equities failed to hold early gains, nudging above 1.2400.
USD/JPY had managed a high just shy of 107.30 on improved risk appetite and the scandal news fading from the newswires, but slipped on the US data and Tillerson sacking to around 106.85, and later to near 106.50 as Wall Street came off.
GBP is slightly better bid, though EUR/GBP still unable to put any real weight on .8840/50 support. Chancellor Hammond in his Spring Budget Statement hinted at good news from the EU next week (echoing PM May's recent message), also hinting at a loosening of the fiscal purse strings in the Autumn, but both short of detail.
USD/CAD broke sharply higher on dovish comments from BoC Gov Poloz who sees room for the economy to expand without pushing inflation higher. CAD moved deeper into third place on the commodity currency ladder, AUD/CAD topping out just shy of 1.0200, a 9mth high. With USD/CAD gains extending through 1.2950 AUD/USD saw some late losses, touching .7850.
No excitement to be found in Scandinavia or Switzerland, SEK traders looking to Swedish CPI Wednesday, while both the Norges Bank and SNB have policy meetings with decisions due Thursday.

Asia FX and News:
-House Democrats vow to continue Russia probe, issue own report ~ Reuters
-Japan core machinery orders rebound, easing capex concerns ~ Reuters
-Russia says is not responding to British ultimatum on nerve attack ~ Reuters
-China January-February factory output, investment stronger than expected ~ Reuters
-Irish PM calls for fresh Northern Ireland talks next month ~ Reuters
-China puts an end to its notorious one-child policy enforcer ~ Reuters
-Trump eyes replacing his veterans affairs secretary with his energy chief ~ NYT
-Kuroda: BOJ has bought 75% of JGB issued in fy2017 so far ~ BBG
-Japan's Abe Is Latest Leader Mulling Kim Summit, Report Says ~ BBG
- Japan's Abe, Aso Say They Didn't Order Doctoring of Documents ~BBG
-Dollar still soft, as sentiments flows from NY session. BOJ meeting minutes offers nothing fresh for yen traders. USD/JPY rise was halted at 106.75 before finding support at day low of 106.40. EUR/JPY near to flat with 132 an immediate support. EUR/USD rising past Tuesday's high above 1.24. Cable lifted but again fall short of 1.40 as offers near NY high still not backing down. AUD/USD in bid mode but stalls at 0.7875, also helped by decent China data. Kiwi loses some momentum going into noon in Asia to see AUD/NZD quickly erasing much losses for the day. USD/CAD steadies around 1.2950 in a 20 pips range. EUR/CHF chops below 1.17.


AU: Westpac Consumer Confidence (Mar) 0.2% m/m (Prev: -2.3)

JP: Key Machinery Orders (Jan) 8.2% m/m (Mkt: 5.2 Prev: -9.3R)

JP: Key Machinery Orders (Jan) 2.9% y/y (Mkt: -0.7 Prev: -5.0)

Still To Be Released -


07:00 GMT - DE: CPI (Feb F) % m/m (Mkt: 0.5 Prev: 0.5)

07:00 GMT - DE: CPI (Feb F) % y/y (Mkt: 1.4 Prev: 1.4)

07:00 GMT - DE: HICP (Feb F) % m/m (Mkt: 0.5 Prev: 0.5)

07:00 GMT - DE: HICP (Feb F) % y/y (Mkt: 1.2 Prev: 1.2)

07:00 GMT - FI: CPI (Feb) % m/m (Prev: -0.3)

07:00 GMT - FI: CPI (Feb) % y/y (Prev: 0.8)

08:00 GMT - ES: Retail Sales (Jan) % y/y (Mkt: 2.4 Prev: 1.2)

08:30 GMT - SE: CPI (Feb) % y/y (Mkt: 1.6 Prev: 1.6)

08:30 GMT - SE: CPIF (Underlying) (Feb) % y/y (Mkt: 1.7 Prev: 1.7)

08:55 GMT - IS: 7-Day Deposit Rate (Mar-14) % (Prev: 4.25)

09:00 GMT - IT: Retail Sales (nsa) (Jan) % y/y (Prev: -0.1)

09:00 GMT - IT: Retail Sales (sa) (Jan) % m/m (Prev: -0.3)

10:00 GMT - EU: Industrial Production (Jan) % y/y (Mkt: 4.4 Prev: 5.2)

12:30 GMT - US: PPI (Feb) 4cast: 0.1% m/m (Mkt: 0.1 Prev: 0.4)

12:30 GMT - US: PPI (ex Food & Energy) (Feb) 4cast: 0.2% m/m (Mkt: 0.2 Prev: 0.4)

12:30 GMT - US: Retail Sales (Feb) 4cast: 0.6% m/m (Mkt: 0.3 Prev: -0.3)

12:30 GMT - US: Retail Sales (ex Autos) (Feb) 4cast: 0.7% m/m (Mkt: 0.4 Prev: 0)

14:00 GMT - US: Business Inventories (Jan) % (Mkt: 0.6 Prev: 0.4)

21:45 GMT - NZ: GDP (Q4) % y/y (Mkt: 3.1 Prev: 2.7)

21:45 GMT - NZ: GDP (SA) (Q4) % q/q (Mkt: 0.8 Prev: 0.6)

Events & Auctions:

22:10 GMT - AU: RBA's Kent Speaks in Sydney

23:50 GMT - JP: BoJ Minutes of Monetary Policy Meeting

WLD: OPEC Monthly Oil Market Report

07:30 GMT - EU: ECB's Coeure Speaks in Berlin

08:00 GMT - EU: ECB's Draghi Speaks in Frankfurt

08:45 GMT - EU: ECB's Angeloni Speaks in Rome

08:45 GMT - EU: ECB's Praet Speaks in Frankfurt

10:00 GMT - GR: Bills Auction

10:30 GMT - DE: Tap of Bund 1.25 8/15/48 ((EUR 1.5bn)

10:30 GMT - PT: Tap of OT 2.125 10/17/28 ((EUR 0.75bn)

10:30 GMT - PT: Tap of OT 4.1 02/15/45 ((EUR 0.5bn)

10:45 GMT - EU: ECB's Constancio Speaks in Frankfurt

13:00 GMT - DE: Bundesbank's Dombret Speaks in Berlin

13:00 GMT - US: Fed's Bostic Speaks in Miami

13:30 GMT - EU: ECB's de Galhau Speaks in Frankfurt

16:15 GMT - EU: ECB's Coeure Speaks in Berlin

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