Forex news for Asia trading Monday 5 June 2017
- Saudi Arabia, Bahrain, UAE, Egypt cuts ties with Qatar, says for protection of national security
- Australian dollar ticking a little stronger; data not looking so dire for it
- China - April Caixin Services PMI 52.8 (prior 51.5) & Composite 51.5 (51.2)
- IMF official says US fiscal uncertainty & China's credit growth a risk to Asia economies
- Australia - ANZ Job Advertisements for May: +0.4% m/m (prior +1.4%)
- Australia - Q1 Inventories +1.2% q/q (expected +0.5%) & Profit +6% q/q (expected +5.0%)
- PBOC sets USD/CNY mid-point today at 6.7935 (vs. Friday at 6.8070)
- Big swing in Morgan Stanley EUR/USD forecast. Now for 1.18 at end year (0.97 prior).
- Australia - Melbourne Institute inflation gauge (May): 0.0% m/m (prior 0.5%)
- Japan - Nikkei Services PMI (May) 53.0 ( prior 52.2) & Composite 53.4 (prior 52.6)
- Goldman Sachs on the NFP - a bit of a miss but still strong
- GBP: Scenarios for UK elections & targets for EUR/GBP
- Australia - Services PMI (May): 51.5 (prior 53.0)
- Forecast is for British factory output on track for its fastest growth since 2014
- Putin denies knowledge of attempts to set up back channel with Trump
- UK election analyst on polls: First part of May’s nightmare scenario has come to fruition
- 2 Australian banks on the AUD for today
- Weekend PBOC comments - Bank wants neutral monetary policy
- OIL - UK press: Rosneft ready to expand crude output if OPEC agreement ends abruptly
- Japan press - BOJ nearly doubles ETF holdings in one year
- ISIS has claimed responsibility for the London attacks
- Trade ideas thread - Monday 5 June 2017 (& prices update)
- Economic data due from Asia today (& FX rates update)
- World Bank global growth forecasts - picking up into 2018
- Weekend oil - Saudi's Falih says will consider bigger production cuts in July
- Monday morning Forex prices, early indications - 5 June 2017
Weekend:
- ECB's Visco: Italy's slump in last 10 years worse than the great depression
- Terrorists kill seven, wound at least 50 in London
- London attacks - more. Police say responding to 3rd incident, in Vauxhall area
- 3 UK election polls - all over the place (Cons lead in all)
- UK - van veers off pavement on London Bridge, has struck as many as six people
- Video: How to listen to a squawk and something else at the same time
- Another record close for the major US indices
The weekend terrorist attack in London dominated early price movement as Asia opened for the week, with a small drop for GBP and a small gain for yen. The 'gap' down for cable was not quite covered, but came close, GBP/USD is sitting just off its session bounce high as I update.
USD/JPY has recovered all and more of its early weakness and it is just off its session high also. EUR/USD and USD/CHF are both little changed net on the session.
NZD/USD has not done a lot either, but it is down 20-odd points from its session high, AUD/NZD buyers san influence here. USD/CAD is on its session low as I update after a small range only.
AUD/USD opened a touch weaker in early trade but has recovered and traded up to above 0.7450 (briefly) and is just off there now. Australian data releases were a focus today ahead of the Reserve Bank of Australia tomorrow and Q1 GDP due Wednesday. Inventory data today is a direct input into the GDP and the higher than expected addition to inventories in Q1 (came in at +1.2% vs. +0.5% expected) will add about 0.4 points to the GDP result.
We still await 'partial' data that will count towards the GDP figure; due tomorrow will be data for Q1 net exports and government spending/public demand. Westpac and Goldman Sachs are both looking for GDP growth of +0.4% on the quarter, although there are some in the market still expecting a negative.
Regional equities:
- Nikkei -0.03%
- Shanghai -0.47%
- HK -0.31%
- ASX -0.82%
