Global Markets:
- Asian stock markets: Nikkei up 0.75 %, Shanghai Composite fell 0.40 %, Hang Seng gained 0.05 %, ASX 200 rose 0.20 %
- Commodities: Gold at $1340 (-0.25 %), Silver at $20.38 (-0.20 %), WTI Oil at $45.40 (+1.45 %), Brent Oil at $46.85 (+1.25 %)
- Rates: US 10 year yield at 1.48, UK 10 year yield at 0.75, German 10 year yield at -0.14
News & Data:
- Bank of Korea keeps rates unchanged at 1.25%, as expected
- BoK cuts 2016 GDP forecast to 2.7% from 2.8%; cuts 2016 CPI forecast to 1.1% from 1.2%
- Australian Employment Change Jun: 7.9K (est 10.0K, prev 17.9K, rev 19.2)
- Australian Unemployment Rate Jun: 5.8% (est 5.8%, prev 5.7%)
- Australian Full-time Employment Change Jun: 38.4K (prev 0.0K)
- Australian Part-time Employment Change Jun: -30.6K (prev 17.9K)
- Australian New Motor Vehicle Sales (MoM) Jun: 3.1% (prev -1.1%, rev -1.0%)
- Australian Consumer Inflation Expectations Jul: 3.7% (prev 3.5%)
- Singapore GDP (QoQ) Q2 A: 0.8% (est 0.9%, prev 0.2%)
- Singapore GDP (YoY) Q2 A: 2.2% (est 2.2%, prev 1.8%, rev 2.1%)
- New Zealand ANZ Consumer Confidence Jul: down 0.6% to 118.2 (prev up 2.3% to 118.9)
- New Zealand Manufacturing PMI Jun: 57.7 (prev 57.1, rev 57.2)
- UK RICS House Price Balance Jun: 16% (est 10%, prev 19%)
- PBOC Fixes Yuan Reference Rate At 6.6846 (prev 6.6891)
- Moody’s: Australian election result is credit negative – BBG
- Fed’s Harker: Sees up to 2 hikes this year; slight downgrade from May forecast
- Harker: 2% inflation target is not a ceiling
Markets Update:
AUD/USD gained shortly after the Tokyo open as the Australian MI inflation expectations arrived higher than anticipated. Employment figures came in half an hour later and the pair extended gains to 0.7640. The topside was capped there however, and AUD/USD fell back to 0.7610. Meanwhile, the New Zealand Dollar fell against most major currencies after the RBNZ announced that it will publish a brief update on its economic assessment next Thursday. NZD/USD fell from 0.7285 to a low of 0.7222 so far.
USD/JPY was supported by rising equity markets and risk-on sentiment. The pair opened around 104.00 in Tokyo and rallied to a high of 104.80. Heavy offers can be expected around 105.20 and 105.50, while support lies at 104.50 and 104.00.
EUR/USD was quiet as usual and traded in a 1.1090-1.1115 range. GBP/USD saw increased volatility overnight, as it caught a bid after the Tokyo open and rallied from 1.3110 to 1.3220.
Upcoming Events:
- 08:15 BST – Swiss PPI
- 12:00 BST – Bank of England Rate Decision
- 12:00 BST – Bank of England Meeting Minutes
- 13:30 BST – US Initial Jobless Claims
- 13:30 BST – US PPI
- 16:15 BST – FOMC Member Lockhart speaks
- 18:15 BST – FOMC Member George speaks
