Global Markets:
- Asian stock markets: Nikkei up 2.20 %, Shanghai Composite fell 1.55 %, Hang Seng declined 0.25 %, ASX rose 0.05 %
- Commodities: Gold at $1326 (-0.15 %), Silver at $19.63 (-0.30 %), WTI Oil at $42.88 (-0.10 %), Brent Oil at $45.20 (-0.15 %)
- Rates: US 10 year yield at 1.58, UK 10 year yield at 0.83, German 10 year yield at -0.03
News & Data:
- Australia CPI (QoQ) Q2: 0.4% (est. 0.40%, prev. -0.20%)
- Australia CPI (YoY) Q2: 1.0% (est. 1.10%, prev. 1.30%)
- Australia CPI Trimmed Mean (QoQ) Q2: 0.5% (est. 0.40%, prev. 0.20%)
- Australia CPI Trimmed Mean (YoY) Q2: 1.7% (est. 1.50%, prev. 1.70%)
- Australia CPI Weighted Median (QoQ) Q2: 0.4% (est. 0.40%, prev. 0.10%),
- Australia CPI Weighted Median (YoY) Q2: 1.3% (est. 1.30%, rev prev. 1.3% from 1.40%)
- China Industrial Profits (YoY) Jun: 5.1% (prev. 3.70%)
- China Westpac-MNI Consumer Sentiment Jul: 114.0 (prev. 115.9)
- Asia stocks near one-year highs; yen slips on BOJ easying bets – RTRS
- Oil dips to remain near three-month lows as headwinds persist – RTRS
Markets Update:
AUD/USD saw increased volatility after the release of the Australian inflation data, but is now almost back to where it was before. The trimmed CPI numbers were higher than expected, but the headline y/y CPI figure missed expectations. AUD/USD initially rallied to 0.7565, but quickly reversed the gains, falling to 0.7457. Similar price action was seen in AUD/NZD, which first rallied to 1.0720, but then declined back to 1.0620.
NZD/USD came under renewed pressure in Asia. Selling interest remains high as the RBNZ is likely to cut rates next month and the topside was capped at 0.7085 yesterday. Overnight, the pair fell to a low of 0.70. Support is now seen at 0.6950 and 0.69.
USD/JPY rallied from 105.40 to 106.50 after new rumours about the Japanese stimulus package. This time, the amount was said to be 27 trillion Yen. Uncertainy remains high however, and USD/JPY quickly ran out of momentum, falling back to 105.50 within an hour.
Upcoming Events:
- 07:00 BST – German Consumer Climate
- 07:45 BST – French PPI
- 09:30 BST – UK GDP
- 13:30 BST – US Durable Goods Orders
- 15:00 BST – US Pending Home Sales
- 15:30 BST – US Crude Oil Inventories
- 19:00 BST – FOMC Statement
- 19:00 BST – Federal Reserve Rate Decision
