Global Markets:
- Asian stock markets: Nikkei up 2.85 %, Shanghai Composite gained 0.20 %, Hang Seng rallied 0.50 %, ASX 200 rose 0.85 %
- Commodities: Gold at $1356 (-0.05 %), Silver at $20.45 (+0.70 %), WTI Oil at $44.75 (+0.05 %), Brent Oil at $46.30 (+0.10 %)
- Rates: US 10 year yield at 1.45, UK 10 year yield at 0.76, German 10 year yield at -0.16
News & Data:
- Japanese PPI (YoY) Jun: -4.2% (est -4.2%, prev -4.2%, rev -4.3%)
- Japanese PPI (MoM) Jun: -0.1% (est -0.1%, prev 0.2%, rev 0.1%)
- Australian NAB Business Conditions Jun: 12 (prev 10)
- Australian NAB Business Confidence Jun: 6 (prev 3)
- Australian ANZ Roy Morgan Consumer Confidence (Weekly) Jul 10: 115.2 (prev 115.8)
- Australian Credit Card Purchases (AUD) May: 26.0bln (prev 23.5bln)
- Australian Credit Card Balances (AUD) May: 51.9bln (prev 51.8bln)
- PBOC Fixes Yuan Reference Rate At 6.6950 (prev 6.6843)
- Fed’s Mester: Comfortable Fed is not behind the curve – RTRS
- Fed’s Mester: Rates moving gradually higher; Fed is data dependent in regards to timing
- Fed’s Mester: Making progress on inflation mandate – BBG
- Japan Chief Cabinet Secretary Suga: Don’t know what the scale of stimulus package will be – BBG
- Japan FinMin Aso: Will mull stimulus package once it is ordered by PM Abe – BBG
Markets Update:
The Australian Dollar rose against the USD after a better than expected NAB business confidence release. AUD/USD already caught a bid in the early Tokyo session and later extended gains to 0.7590. Resistance is now seen at 0.7650. NZD/USD recovered along with the AUD, after failing to keep momentum above 0.73 yesterday. It bounced from 0.7210 and traded as high as 0.7270 overnight.
USD/JPY continues to rise after the Japanese PM announced a new economic stimulus package. The pair opened around 102.60 in Tokyo and rose to a high of 103.30 earlier. Resistance is now noted at 103.40, followed by 104.50.
The British Pound has been recovering since yesterday's news that Andrea Leadsom pulled out of the Tory leadership race, which means that Theresa May will very likely become the UK's next prime minister. GBP/USD, which traded as low as 1.2850 yesterday, reached a high of 1.3090 in Asia.
Upcoming Events:
- 07:00 BST – German CPI
- 10:00 BST – Bank of England Governor Carney speaks
- 14:15 BST – FOMC Member Tarullo speaks
- 14:35 BST – FOMC Member Bullard speaks
- 15:00 BST – US JOLTs Job Openings
- 22:30 BST – FOMC Member Kaplan speaks
