- S. Korea July PPI falls 0.5% m/m and 0.1% y/y.
- N.Z. July retail card spending down 0.6%m/m and rose 2.6% y/y . Total card spending fell 2.6% m/m.
- Japan July domestic CGPI down 2.1% y/y and down 0.4 % m/m -MNI
- Deutsche Bank cuts China GDP estimates . Sees deceleration in China second half investment growth, with policy stimulus more modest.
- RBA Policy Statement . “Persistently High” Aussie $ may hurt growth more than in the past. Predicts 2012 average growth of 3.75% vs 3% forecast in May. Australia ‘well placed’ to respond to global shocks.
- China trade numbers Balance $25.15bln , Exports rose 1%, Imports rose 4.7% . all lower than forecast.
The top two news items of the evening ( the RBA policy statement and the China trade numbers) lead the way for an assault on the Aussie $.
Aussie started the session at the highs of 1.0580 where real money names appeared as sellers . Good buying around the 1.0550 gave it a brief bounce to 1.0565 /75 consolidation level before the RBA statement. A delay sell-off afterwards sent the Aussie to it’s next support level at 1.0530/35 again bouncing back to 1.0545/50 before the very disappointing China numbers sent it to the lows of 1.0520. It still remains soft but seems to have found some buying interest here .
Euro: Started the weekend early 1.2287/08 the range , but more like 1.2295 choice all session .
Usd/Jpy : Ditto the Euro . Range 78.64/78.50, lets go with 78.58 choice.
Usd/Cad : Trading near highs of the session at 0.9930 , but then again the low was 0.9910.
Nzd; Trading near the lows of 0.8090 at 0.8095 with high of 0.8122 at the start of the day.
With the extremely disappointing China numbers you might get a softer tone in the commodity currencies later . Pressure is now on China to ease monetary policy further . They of course will not be alone come September .
Good Weekend and Good Luck Today .
