25 Mar 2014
Asia Recap: AUD resilience persists amid Chinese stimulus talk
FXStreet (Bali) - Very few moves to report on Tuesday, with the stand out occurrence being a quick hunt for stops above 0.9150 in the AUD/USD.
AUD/USD opened circa 0.9125/30 until a stop-loss driven spike above 0.9150 brought some action, with the rate printing new 2014 highs at 0.9156 before losing its footing to re-visit the 0.9130. There was no economic data out of Australia today. Moreover, RBA Deputy Governor Lowe gave a speech, in which no reference to economic or monetary policies was made, thus keeping AUD traders at bay.
USD/JPY had a peaceful session too, trading in a tight range between 102.15 and 102.30. Lack of interest to set a directional bias in the Nikkei 225 (-0.02% at the time of writing) could not provide any external stimulus to unravel the current stagnation in prices. The rest of currencies kept familiar ranges.
One of the talks across Asian trading desks is hopes for further Chinese stimulus to support growth. While the China Security Journal seemed to suggest in their front page editorial that room to ease policy further in China is very limited, judging by the performance of the Chinese property index (up more than 3% at one point) communicates that the sector is still expecting new stimulus packages to be announces soon. Besides, iron ore futures also traded sharply higher, strengthening the speculation of stimulus after the disappointing China Flash HSBC PMI from Monday.
Main headlines in Asia
HSBC China PMI hints growth momentum to slow - Nomura
No much room for China to loosen monetary policy
PBOC sets USD/CNY rate at 6.1426
China CB Leading Economic Index fell from previous 1.2 to 0.9 in February
Is China's property index sending a message?
Five keys areas to revive Australia's growth story - Deloitte
RBA Deputy Governor Lowe speech: no reference to economic or monetary policies
AUD/USD opened circa 0.9125/30 until a stop-loss driven spike above 0.9150 brought some action, with the rate printing new 2014 highs at 0.9156 before losing its footing to re-visit the 0.9130. There was no economic data out of Australia today. Moreover, RBA Deputy Governor Lowe gave a speech, in which no reference to economic or monetary policies was made, thus keeping AUD traders at bay.
USD/JPY had a peaceful session too, trading in a tight range between 102.15 and 102.30. Lack of interest to set a directional bias in the Nikkei 225 (-0.02% at the time of writing) could not provide any external stimulus to unravel the current stagnation in prices. The rest of currencies kept familiar ranges.
One of the talks across Asian trading desks is hopes for further Chinese stimulus to support growth. While the China Security Journal seemed to suggest in their front page editorial that room to ease policy further in China is very limited, judging by the performance of the Chinese property index (up more than 3% at one point) communicates that the sector is still expecting new stimulus packages to be announces soon. Besides, iron ore futures also traded sharply higher, strengthening the speculation of stimulus after the disappointing China Flash HSBC PMI from Monday.
Main headlines in Asia
HSBC China PMI hints growth momentum to slow - Nomura
No much room for China to loosen monetary policy
PBOC sets USD/CNY rate at 6.1426
China CB Leading Economic Index fell from previous 1.2 to 0.9 in February
Is China's property index sending a message?
Five keys areas to revive Australia's growth story - Deloitte
RBA Deputy Governor Lowe speech: no reference to economic or monetary policies