ForexLive Asian Wrap Thursday 15 November:
The story of the day was a stabilization in 'risk' after the trashing it received in Europe and the US yesterday and a Tokyo afternoon USD/JPY short squeeze on the back of some comments from the Japanese opposition leader Abe.
NZ Business PMI +2 to 50.5
Australian New Motor Vehicle Sales -2.8% for October (vs. +4.7% prior)
(Please note some Eco Calendars are showing Wpac Consumer Sentiment released, but that was on the 14th, not today - see yesterday's wrap http://www.forexlive.com/blog/2012/11/14/forexlive-asian-wrap-14nov-kiwi... )
San Francisco Fed President John Williams gave a speech, many of his points being reported. He is a known dove, and made dovish noises but little really new and not market moving to any great extent:
Proposes replacing Op Twist with expanded QE3 to asset buys continue at $85B/mth
likely continue needing to purchase MBS & treasuries well into 2nd half of 2013
Much more from Williams here, here, here, and here
The new Chinese Politburo was named,
Xi Jinping new General Secretary, to become President in March
Li Keqiang to become Premier in March
The big mover in the Tokyo afternoon was USD/JPY.
With the election expected on Dec. 16 (though its not official yet), electioneering has begun: Japanese Opposition Leader Abe was reported as saying he wants to work with BOJ to reverse strong Yen trend & to revive the economy (and other comments, here).
About 10 minutes after we reported his comments the market soaked up some long positions and then went after the shorts, taking USD/JPY up to around 80.70.
Further comments from Abe ( wants the BOJ to set rates at or below zero to enhance lending) were then latched onto to send USD/JPY above 80.80.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.