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The start of a new week didn't create much disturbances in currency values, with the main theme still being the strong USD after a stellar NFP last Friday, while the Aussie was lower across the board on China's downbeat trade imports.
AUD/USD traded in a tight range between 0.7748 and 0.7778, with a down-gap from 0.7793 failing to be filled after the opening of retail platforms. A major slump in China's trade imports, mainly due to seasonal distortions (Lunar New Year), weighed on the AUD. A speech by RBA Stevens made no references to neither the AUD nor monetary policy, while a leadership motion in Australia saw PM Abbott keep his post for now.
NZD/USD traded in a slightly better tone, with a 0.7380 - 40 the Asian range, aid the absence of any major drivers to inspire greater activity. USD/JPY also traded in a relatively small consolidation phase, with exports selling interest and light profit taking leading to 119.70 session lows, stopping out weak longs in the process.
Another story doing the rounds in Asia, although having little effect in the Swiss Franc, was an interview by a Swiss radio station SRF to SNB's Chief Jordan, who didn't rule out the introduction of further negative rates, while noting that intervention is still a card that can be played if found necessary.
On negative rates, Jordan said, reported by Reuters, that "the negative interest rates are having a strong impact to make the franc less attractive, and signaled the central bank has room to push rates lower." Jordan added that "there is certainly a limit for negative interest rates, but the question is where exactly that limit is. However, I believe at the current level of -0.75 percent, the limit certainly isn’t reached yet.”
Main headlines in Asia
SNB will intervenve in FX market if necessary - Jordan
China Exports (YoY) below expectations (6.3%) in January: Actual (-3.3%)
China Imports (YoY) came in at -19.9% below forecasts (-3%) in January
China Trade Balance above forecasts ($48.9B) in January: Actual ($60.03B)
China: Import growth slumps in January - Nomura
Australian PM passes leadership challenge
Japan Trade Balance - BOP Basis rose from previous ¥-636.8B to ¥-395.6B in December
Japan Current Account n.s.a. registered at ¥187.2B, below expectations (¥358B) in December
Japan Bank lending (YoY) fell from previous 2.6% to 2.5% in January
RBA Stevens: No comments on AUD or monetary policy
Japan Consumer Confidence Index: 39.1 (January) vs 38.8
AUD/USD traded in a tight range between 0.7748 and 0.7778, with a down-gap from 0.7793 failing to be filled after the opening of retail platforms. A major slump in China's trade imports, mainly due to seasonal distortions (Lunar New Year), weighed on the AUD. A speech by RBA Stevens made no references to neither the AUD nor monetary policy, while a leadership motion in Australia saw PM Abbott keep his post for now.
NZD/USD traded in a slightly better tone, with a 0.7380 - 40 the Asian range, aid the absence of any major drivers to inspire greater activity. USD/JPY also traded in a relatively small consolidation phase, with exports selling interest and light profit taking leading to 119.70 session lows, stopping out weak longs in the process.
Another story doing the rounds in Asia, although having little effect in the Swiss Franc, was an interview by a Swiss radio station SRF to SNB's Chief Jordan, who didn't rule out the introduction of further negative rates, while noting that intervention is still a card that can be played if found necessary.
On negative rates, Jordan said, reported by Reuters, that "the negative interest rates are having a strong impact to make the franc less attractive, and signaled the central bank has room to push rates lower." Jordan added that "there is certainly a limit for negative interest rates, but the question is where exactly that limit is. However, I believe at the current level of -0.75 percent, the limit certainly isn’t reached yet.”
Main headlines in Asia
SNB will intervenve in FX market if necessary - Jordan
China Exports (YoY) below expectations (6.3%) in January: Actual (-3.3%)
China Imports (YoY) came in at -19.9% below forecasts (-3%) in January
China Trade Balance above forecasts ($48.9B) in January: Actual ($60.03B)
China: Import growth slumps in January - Nomura
Australian PM passes leadership challenge
Japan Trade Balance - BOP Basis rose from previous ¥-636.8B to ¥-395.6B in December
Japan Current Account n.s.a. registered at ¥187.2B, below expectations (¥358B) in December
Japan Bank lending (YoY) fell from previous 2.6% to 2.5% in January
RBA Stevens: No comments on AUD or monetary policy
Japan Consumer Confidence Index: 39.1 (January) vs 38.8
