ForexLive Asia FX news wrap: Japan wholesale inflation to a forty-year high

Forex news for Asia trading on
Thursday
11
November 2021

The news that Evergrande had
reportedly paid its interest on bonds provided a positive input for
sentiment during the session here, resulting
in mixed performance across regional equities. The Shanghai Composite
inched a little higher but Japan and Hong Kong did not fare so well. Coal and iron ore markets in China rose. 

The
mild improvement in tone was not really evident in the forex space
though, with a rising USD after Wednesday’s scorching US CPI
results carrying on in Asia, albeit in a limited range. EUR, GBP, and CHF dipped a little but as I post are now back to barely changed
on the day.

AUD and NZD are weaker. AUD/USD was not helped by a poor
employment report with a loss of jobs recorded in October against the
gain expected, and a higher unemployment rate. Taking a look at the
report, though, there are some caveats to the bad news. The
survey period was very early, September 26 to October 9 which was
before reopening got underway to much extent in Australia’s two
most populous states. The report has left us awaiting the November
results in a month’s time which is expected to be much better (see
bullets above for the details, the relevant posts are in bold in the
list).

From
Japan today we had wholesale inflation for October, PPI. It hits its
highest y/y in forty years. USD/JPY has inched a little higher on the
session – the Bank of Japan is a long way from even thinking about
tightening policy. USD/JPY was assisted by higher US yields also. 

Elon Musk filed paperwork showing he had made good on some of his promise to sell Tesla shares if a twitter poll advised him to do. Musk sold circa 3m shares of TSLA, well short of the 10% promised he’d sell, but perhaps its a start. Curiously, the filing showed the sale was pre-planned, from September 9, which made the Twitter poll irrelevant. Ever the showman is Mr. Musk. 

Forex news for Asia trading onThursday11November 2021

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