Asian Market Update - Cautious and thin trading ahead of this week's BoJ rate decisio

Discussion in 'Trading' started by TradeTheNews, Feb 18, 2007.

  1. TradeTheNews

    TradeTheNews ET Sponsor

    - Forex: The Kiwi is holding near a 3 week high against the USD and above the $0.7000 level on rate differentials. The AUD is also near session and 4-week highs against the USD on rate differentials and the pair is holding just below the $0.7900 level. Gains in prices of spot gold have also added upside to the Aussie. The JPY is weaker across the board in a session dominated by range bound trading, as the market remains divided with respect to the Bank of Japan's next move. However, the yen is holding near a 6 week high against the USD. The USD is currently weaker across the board following Friday's weaker than expected building permits and consumer confidence data. Also some profit taking is visible ahead of this week's CPI data, after PPI was inline with expectations. The Swiss Franc is currently higher across the board and near 6- week highs against the USD ahead of this week's Bank of Japan rate decision. NZD/CHF is currently near session highs, which could imply that a Bank of Japan rate hike may make the CHF carry trade more appealing. The CAD is weaker across the board tracking declines in crude oil prices.
    - Equities: The Nikkei is gaining and holding above the 17,900 level, which is near a 7 yr high, as gains are being driven by shares of retailers on M&A speculation. The ASX 200 index is trading higher, but was unable to rise above the 6000 level, which would be a new all-time high. Gains on the ASX were driven by shares of Woodside Petroleum and Promina Group. However, miner Rio Tinto fell on falling copper and nickel prices.
    - Bonds: Japanese bond prices traded lower as equities gained and on indecision with respect to the Bank of Japan's next policy decision.
    Commodities: Crude oil is lower on profit-taking, but still holding above $59. Spot gold is higher by more than $2 and holding above $675 on USD weakness.