ForexLive Asia FX news wrap: Another NK induced USD/JPY wobble

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Thursday 7 September 2017

USD/JPY slipped a few tics from late US-time highs in very early Asia before dropping more sharply under 109 as Tokyo got active. The quick slide came on a comment from South Korean Prime Minister Moon that he thought there may be another missile fired from North Korea on September 9. I posted earlier in the week that given September 9 is North Korea  'Foundation Day' expectations were higher for a launch over the weekend, perhaps that's where Moon got the idea from!

Anyway, USD/JPY dipped under 108.90 very briefly before a bounce back to 109.20 and just over and has since steadied around 109.10 and thereabouts.

News flow was otherwise very light indeed.

We did get some data from Australia, the trade balance and retail sales (July) both came in at a miss. The Australian dollar dropped a few points, back under 0.8 (didn't I say that yesterday in the wrap?) and its on its lows under 0.7990 as I update (& ditto). NZD/USD, meanwhile more or less steadily gained through the session, but only small, up from late NY around 0.7190 to circa 0.7215 before steadying a little.

EUR/USD, too, is in the 'small gain' category, from 1.1915/20 late US time to above 1.1930 briefly. Little change too for USD/CHF and Cable.

The People's Bank of China lent 1 year funds today though their MLF.

Regional equities:

  • Nikkei +0.37% (it was higher earlier, but the bout of yen strength sapped it somewhat)
  • Shanghai -0.31%
  • HK +0.23%
  • ASX +0.23%

Still to come: Its ECB day (and the Riksbank)