How-to Guides and tips on the best way to save money on International Bank Transfers
Shinzo Abe’s Liberal Democratic Party was the decisive winner in this weekend’s Japanese election, paving the way for a continuation of “Abenomics” and extremely loose monetary policy in the world’s third largest economy. Consequently, the Japanese yen weakened on Monday to levels above 114 per dollar for the first time since July.
The Canadian dollar weakened on Friday by the most in nine months against the US dollar after indicators of inflation and consumer activity in Canada fell below market expectations. The “loonie” fell as investors adjusted their portfolios to reflect a lower probability of the Bank of Canada raising interest rates at its October 25th meeting.
Holders of New Zealand dollars are still suffering on Friday as the currency continues to fall following last night’s news that New Zealand will be led by a Labour government, with Jacinda Ardern at the helm.
In the twenty-four-hour period leading up to 4pm in Wellington, the New Zealand dollar weakened nearly 2.25% against the US dollar, falling below the psychological support level of 0.7 in the process.
For Asia-Pac currencies, Thursday’s session was dominated by political nervousness in New Zealand and a busy economic calendar.
In terms of data, Japan kicked things off a little before 9am in Tokyo with the country’s latest trade figures. Export growth of 14.1% in the year to September matched market expectations, more or less.
On Tuesday, the Mexican peso had its best day since June and the Canadian dollar rallied after news broke that NAFTA negotiations between the US, Mexico and Canada would be extended into 2018.
The peso and “loonie” initially weakened on reports that Mexico and Canada would refuse to yield to US demands and that negotiations might unravel.
The Singapore dollar weakened against the US dollar on Tuesday morning after data showed that non-petro exports plunged 11% in September. Ahead of the data’s release, analysts had forecast an unchanged reading.
September’s number means that Singapore’s exports declined on an annual basis by 1.1%, from growth of 16.7% in the year to August.
Australian Treasurer Scott Morrison expressed no discomfort with the current valuation of the Australian dollar this weekend.
In an interview with Bloomberg TV, Morrison said that Australian exporters had adapted to a currency that was now 9.3% higher against the US dollar ($0.7873) and nearly 4% higher against the Chinese yuan (¥ 5.1954) than it had been at the start of the year – the dollar and yuan being the currencies of Australia’s two largest trading partners.
The week ahead should be an interesting one for Asian financial markets, with the highlights being China’s 19th National Congress, the latest numbers for Chinese economic growth, the Bank of Korea’s monetary policy meeting and Japanese trade data.
Further to that, and to the events outlined below, investors should look with care to Federal Reserve speakers on Sunday and Wednesday (Asian time zones) and to Tuesday’s US data for industrial production, all of which may influence risk appetite and, of course, the dollar side of Asian FX pairs.