Predictably quiet Asia session ahead of the FOMC

Its been one of those predictably quiet Asia sessions ahead of the FOMC but a few highlights none the less

MSCI
With Asia markets back in full swing today after the local holiday, finally some good news for China equities as MSCI is considering increasing the weighting of  China A shares in its global index from next year and allowing a group of smaller tech stocks in the index.

While there will be no immediate pass-through impact on the markets as the proposal is still on the table, but its a definite win for the local sentiment which has been battered mercilessly by the incessant bluster around trade war.

New Zealand

New Zealand September ANZ business confidence for September has come at -38.3 versus -50.3 prior. This is after earlier today the country posted the worst trade deficit on record at NZD1.5bn versus -925mn expected. After last weeks positive GDP print and when combined with Headline business confidence that bounced 12 points to -38 in September, it’s the highest level since May. Traders are even more confident now for a subtle hawkish shift in the RBNZ language. But I think traders remain guarded about long KIWI positioning and a move above .67 NZDUSD unlikely ahead of the FOMC which comes out 3 hours before the RBNZ.

Oil Markets

Oil markets remain well supported in Asia despite the unexpected 2.9 million barrels build in the API report. While US inventory data counts Oil prices stay in the Bulls domain amid concern that US sanctions on Iranian crude oil exports will result in much tighter physical market conditions once they take effect in November. But with worries circulating the markets could still be underestimating the supply crunch from US sanctions, oil investors remain firmly in buy the dip mode.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes