- FOMC preview - "JPMorgan’s Trading Desk Sees Fed ‘Hike and Pause’ Lifting Stocks"
- IMF warns of upside risk to Japan inflation, urges BOJ to start preparing for tightening
- AUD - decline in inflation should be enough to keep the RBA on hold at their next meeting
- AUD/USD marked lower after better than expected (with a caveat) inflation data
- Australian Q2 Headline CPI 0.8% q/q (vs. 1.0% expected)
- PBOC sets USD/ CNY mid-point today at 7.1295 (vs. estimate at 7.1341)
- BlackRock says markets underestimate inflation’s persistence, Fed hike and hold rates high
- Japan data - PPI Services (Corporate Services Price Index) +1.2% y/y (expected 1.4)
- ANZ on higher oil prices - China demand expected higher, supplies tightening
- Goldman Sachs preview the European Central Bank meeting & leave EURUSD forecast unchanged
- ICYMI - UBS expect China rate cuts, RRR cut, more cash injections in H2 2023
- ICYMI - Morgan Stanley raised its 2023 US GDP forecast to 1.3% (previously at 0.6%)
- TD expect lower USD after the Federal Open Market Committee (FOMC) meeting today, preview
- Forexlive Americas FX news wrap 25 Jul: The USD was lower ahead of Fed decision tomorrow
- Private oil survey data shows headline crude build vs. the draw that was expected
- Trade ideas thread - Wednesday, 26 July 2023
The Australian dollar was a mover on the session, marked lower after inflation data for Q2 2023 was released. The headline and one of the core measures (trimmed mean)came in lower than expected, and the annualised rate for the past six months to 2.6% were all positive news. Less encouraging was the other core measure (weighted median) a touch above central estimates and also services inflation hitting its highest in 22 years. NZD/USD dropped away a few points alongside the AUD.
Moves were more subdued elsewhere as most traders were happy to sit on the sidelines ahead of the Federal Open Market Committee (FOMC) due Wednesday afternoon in the US.
Oil inventory data showed a surprise build vs. the draw that was expected, taking a small bite out of the oil price.
The People’s Bank of China set the CNY a touch stronger than expected again today.
Otherwise news and data flow was very light.
Asian equity markets:
Japan’s Nikkei 225 0.0%
China’s Shanghai Composite -0.3%
Hong Kong’s Hang Seng -0.5%
South Korea’s KOSPI -0.7%
Australia’s S&P/ASX 200 +0.9%
