Forex news from the Asian trading session - 2 May 2018
Headlines:
- Australia's Turnbull says country welcomes economic rise of China
- Macron says he doesn't know what Trump will decide on Iran
- Goldman Sachs says global growth moderation appears to be contained
- Moody's says direct effects of proposed US tariffs on China are likely understated
- Dollar retraces some of yesterday's gains in Asian trading so far
- China April Caixin manufacturing PMI 51.1 vs 50.9 expected
- PBOC sets USD/CNY reference today at 6.3670 vs 6.3393 on Friday
- Japan April Nikkei services PMI 52.5 vs 50.9 prior
- Fitch says Australia's 'AAA' rating is underpinned by strong governance
- Japan monetary base for April Y498.3t vs Y487.0t last month
- UK BRC Shop price index -1.0% vs -1.0% last month
- NZ unemployment rate 4.4%vs 4.4% est. Employment change 0.6% vs 0.6% est.
Markets:
- AUD leads, USD and GBP lags behind so far
- Asian equities mostly lower
- Gold up by 0.5% at $1,310.71
- WTI up by 0.37% to $67.50
- US 10-year yields up by 1 bps to 2.974%
- Bitcoin up by 0.53% to $9,065
After having touched highs just above 92.50, the dollar index is retreating slightly on the day ahead of the FOMC meeting to come. The greenback is a little lower against most major currencies except the pound - which is tied for last with the dollar at the moment.
Ranges remain relatively narrow but so far key levels are holding up despite being breached in yesterday's trading. EUR/USD is holding above 1.2000, AUD/USD above 0.7500, and NZD/USD above 0.7000 at the moment.
In terms of data points, we had New Zealand's labour market report which saw the unemployment rate touch 9-year lows - but wage inflation remains subdued so that will not change the RBNZ's outlook any time soon.
We also had China manufacturing PMI figures and it was a beat compared to expectations and the prior result. While that may have given a slight boost to the aussie, the same can't be said for regional equities though.
Chinese equities are in the red - as is the majority of Asian stocks - with the trade rhetoric casting a shadow over the optimism on the economic data beat. The US is sending a trade delegation to China tomorrow where they will be discussing on trade issues until Friday.
Not much else is going on so far, but with European traders coming back from a break yesterday we should be in store for more action later in the day.
