Global Markets:
- Asian stock markets: Nikkei down 0.80 %, Shanghai Composite gained 0.40 %, Hang Seng declined 0.85 %, ASX 200 lost 0.90 %
- Commodities: Gold at $1346 (+0.55 %), Silver at $20.09 (+2.55 %), WTI Oil at $48.28 (-1.50 %), Brent Oil at $49.65 (-0.95 %)
- Rates: US 10 year yield at 1.42, UK 10 year yield at 0.84, German 10 year yield at -0.14
News & Data:
- China Caixin Services PMI Jun: 52.7 (prev 51.2)
- China Caixin Composite PMI Jun: 50.3 (prev 50.5)
- Japan Nikkei Services PMI Jun: 49.4 (prev 50.4)
- Japan Nikkei Composite PMI Jun: 49.0 (prev 49.2)
- Singapore Nikkei PMI Jun: 52.3 (prev 50.1)
- Australian Retail Sales (MoM) May: 0.2% (est 0.3%, prev 0.2%)
- Australian AiG Performance of Services Index Jun: 51.3 (Prev 51.5)
- Australian ANZ Roy Morgan Consumer Confidence (Weekly) Jul 3: 115.8 (Prev 116.8)
- New Zealand ANZ Commodity Prices Jun: 3.7% (prev 1.0%, rev 1.1%)
- New Zealand QV House Prices (YoY) Jun: 13.5% (prev 12.4%)
- New Zealand Business Confidence Index Q2: 19 (prev 2)
- PBOC Fixes Yuan Reference Rate at 6.6594 (prev close 6.6652)
- YouGov/CEBR Poll: 49% of UK firms pessimistic on economic outlook (25% were pre-Brexit)
- NZ PM Key: RBNZ should create tighter rules for property investors – BBG via Interest
- Australian PM Turnbull: Still confident of securing majority government – BBG
Markets Update:
The RBA decided to keep rates unchanged today, as expected by the market. There were no significant changes in the monetary policy statement, although the central bank noted that “over the period ahead, further information should allow the Board to refine its assessment”. AUD/USD rallied slightly after the announcement, rising from 0.7515 to 0.7542.
USD/JPY declined overnight, as losses in Asian stock markets weighed on the pair. It fell from 102.50 in the early session to a low of 102.00. Support is seen at 101.50 and 100.80, while resistance now lies at 102.80 and 103.00. EUR/USD was quiet, trading in a 1.1125-55 range, while GBP/USD consolidated between 1.3240 and 1.3290.
Silver continues to retrace after its rally above 21 on Monday morning. The metal declined from 20.30 to a low of 19.50 and liquidity seems to be rather poor. Gold has not seen such a sharp increase in volatility and only fell from $1350 to $1338 overnight.
Upcoming Events:
- 08:45 BST – Italian Services PMI
- 08:50 BST – French Services PMI
- 08:55 BST – German Services PMI
- 09:00 BST – Euro Zone Services PMI
- 09:30 BST – UK Services PMI
- 10:00 BST – Euro Zone Retail Sales
- 10:30 BST – Bank of England Financial Stability Report
- 10:30 BST – Bank of England Governor Carney speaks
- 15:00 BST – US Factory Orders
- 19:30 BST – FOMC Member Dudley speaks
