ForexLive Asia FX news wrap: Singapore announces an easing, SGD hit hard via ForexLive

Forex news for Asia trading Wednesday 28 January 2015

Singapore's central bank unexpectedly eased monetary policy

• Singapore central bank reduces the slope of monetary policy band
• More on the shock announcement from the Monetary Authority of Singapore
• More again from the Monetary Authority of Singapore & their stunning announcement earlier

Australian CPI data out today:

• Australia Q4 CPI: +0.2% q/q (vs. expected 0.3%)
• Australian CPI and implications for the RBA … analyst reactions
• Australia – Westpac / Melbourne Institute (MI) Leading Index (December): 0.00% (prior was -0.06%)
• Australia – ANZ Roy Morgan weekly Consumer Sentiment (week ended January 25): 113.2 (prior was 113.6)

• Bank of Canada rate cut was a “pre-emptive manoeuvre” … will the RBA do the same?
• “Greece Begins The Great Pivot Toward Russia”
• Barclays says stronger yen is raising the possibility that BOJ will take rates negative
• Nikkei: Japan banks, insurers shunning domestic government bonds
• Bank of Canada says easier monetary conditions are already being seen
• API US crude oil inventories +12.7 million barrels
• Nikkei poll shows consumers still sitting on their cash I
• AAPL Q1 EPS $3.06 (est $2.60)

The Australian CPI data for Q4 was to be the market focus in Asia today, until in the hours leading up to it the Monetary Authority of Singapore announced a surprise easing in policy (see bullets, above). The SGD was marked down immediately.

The Australian CPI data showed a softer headline result, but the core ‘trimmed mean' came in at an above-expectation +0.7% q/q (see bullets, above). It's the trimmed mean that the RBA pay most attention to in this data set, and this jump brings a February rate cut right off the table … the market reaction was swift – AUD/USD marked higher to tick above 0.8 before coming off 20-odd points, settling then attempting 0.8 again. So far the sellers just above the figure have held it, and it does indeed look like a reasonably decent short sale … but trader stops are now building above the highs and are something to wary of.

The yen was also a mover today, USD/JPY (and yen crosses) up during the Tokyo morning (albeit in a choppy fashion).

EUR/USD and cable were both a little softer today, but were not where the action was. Even USD/CHF calmed itself a little – just an 80-odd point range today as it continues to swing around.

Still to come!

• Preview – Reserve Bank of New Zealand policy meeting on 29 January 2015
• Technical analysis: NZD ahead of the RBNZ decision

posted via ForexLive