- Japan chief cabinet secretary Matsuno concerned by rapid yen weakening
- Chevron CEO says oil market still tight, price fall may be short-lived
- Chinese authorities are eyeing capital controls - concern on flows of funds offshore
- Australia (June) Jobs +88.4K(expected +25K) Unemployment rate 3.5% (expected 3.8%)
- USD/JPY pops 138.00 for the first time since September of 1998
- PBOC sets USD/ CNY reference rate for today at 6.7265 (vs. estimate at 6.7302)
- Australian inflation expectations for July 6.3% (prior 6.7%)
- JP Morgan targets USD/CAD at 1.24 over the medium-term
- Crypto - Celsius death throes - files for Chapter 11 Bankruptcy in New York
- Japan data: Foreign investors bought the most Japanese bionds last week for 12 months
- Monetary Authority of Singapore to recentre its SGD trading band
- USD on the rise in Asia morning trade
- Shanghai (officially) reports zero new COVID cases outside quaantine again today
- Goldman Sachs says 42% of CPI basket has a 6-mth annualized inflation of above 6%
- Fed's Daly says her most likely response is a 75bp rate hike in July
- KRW - South Korea says it will take active steps on one-sided market move
- Armed forces deployed to Libya's National Oil Corporation HQ
- Sharp rise in the number of Japanese firms planning to hike prices
- More from Mester: The risk of recession has increased, but the Fed must lower inflation
- Fed's Mester says inflation too high but rate hike decision does not need to be made yet
- Turkey says a “basic, technical” agreement reached between Ukraine & Russia to ship grain
- European Union (draft report) cuts forecasts for economic growth this year and next
- US CPI responses coming in - "clear sign of an over-heated domestic economy"
- Oil, gas - Moody's outline the case for energy prices to rise further
- Some of Australia’s biggest investors piling into bonds, bet yields peaking
- Stock market today, a technical analysis via the Russell 2000
- US President Biden says he will use force to stop Iran getting a nuclear weapon
- Moody's: Russian gas supply halt will weaken growth, fiscal metrics (in Germany & Italy)
- Trade ideas thread - Thursday, 14 July 2022
- Forexlive Americas FX news wrap: US CPI runs hot, BOC surprises with 100 bps
- Nomura has revised their FOMC rate hike call, +100bps (from +75) coming in July
- Major US indices close lower again in up and down trading session
The US CPI report published Wednesday reverberated in Asia today. Expectations of further aggressive Federal Open Market Committee (FOMC) rate hikes to come played a part in out-of-cycle monetary policy tightening from Singapore (see the post on the Monetary Authority of Singapore above) and the Philippines (no post above for this one, up 75bp) here in the timezone today.
The Monetary Authority of Singapore meet twice a year, in April and October. The policy tightening came after an unscheduled meeting.
USD/JPY continued its rapid climb, moving above 138 for the first time since September of 1998. The rise was halted by some verbal intervention from Japan’s chief cabinet secretary Matsuno (bullets above). There were similar remarks out of South Korea earlier in the session.
The USD also rose elsewhere (AUD excepted, I’ll come to that). GBP, EUR, NZD are all lower as I post.
On the data agenda today the focus was the Australian labour market report. It did not disappoint. There was another large rise in the number of jobs added and the unemployment rate fell to its lowest in nearly 50 years. Further shining the report was a rise in participation. Its likely such a result puts a floor under the next Reserve Bank of Australia rate hike (due August 2) at 50bp. Reserve Bank of Australia Governor Lowe has been reluctant to concede that 75bp rate hikes have been considered by the Board. The case for 75bp strengthened markedly with this labour market result today though. An alternative is to stick with 50bp in August and then again in September. Monetary policy works with a lag, a month delay is neither here nor there to the boffins at the RBA.
AUD/USD has risen on the session, shrugging off some the USD impacting flex elsewhere.
It was a toss-up between AUD and Yen charts today. Oz won:
