- Analyst responses to Saudi oil output cut: ANZ maintains its year-end $100 Brent forecast
- Japan's Matsuno says monitoring impact of Saudi oil output cut on economy
- China Caixin / S&P Global non-manufacturing PMI for May: 57.1 (vs. expected 55.2)
- Australian Q1 data: Business Inventories +1.2% q/q (expected +0.5% q/q, prior -0.2%)
- PBOC sets USD/ CNY reference rate for today at 7.0904 (vs. estimate at 7.0918)
- Australian private survey inflation gauge for May headline is 0.9% m/m vs. 0.2% prior
- Japan Jibun / S&P Global Services PMI for May: 55.9 (prior 56.3)
- Reserve Bank of Australia policy meeting tomorrow - preview
- JP Morgan's Pinto says Fed to hike towards 5.5%, see a US recession
- BNP Paribas say Japanese government's 'line in the sand' for USDJPY is around 145
- Australia data - May services PMI 52.1 (prior 53.7)
- Goldman Sachs' 3 reasons why Saudi oil output cut was 'moderately bullish'
- Russian defence officials say Ukraine has begun a large-scale military operation
- Crude oil futures jump higher at the week's open on Saudi output cut news
- Morgan Stanley on the US jobs report (Friday's NFP) - raises the risk of an FOMC July hike
- Oil news - US and UK naval forces responded to Iranian fast-attack boats in Gulf on Sunday
- NZD traders reminder - it's a New Zealand holiday today
- Trade ideas thread - Monday, 5 June 2023
- Monday morning open levels - indicative forex prices - 05 June 2023
- Saudi Arabia to make 1m bpd production cut, others to extend cuts through 2024
- Week Ahead: Services ISM; China CPI, trade data; BoC, RBA, announcements
- Decoding a previous 2023 S&P 500 forecast: A closer look at the 4400 key level
- EURUSD technical levels in play for the week starting June 5th
- The NZDUSD buyers tried to extend higher, but failed. What now?
- GBPUSD technical levels in play for the week starting June 5th
- The AUDUSD runs higher on Friday but stalls at a key level
- USDJPY has technical convergence from three key technical levels going into the new week
- The week ahead: USDCHF sellers had their shot on Friday, but missed.
- USDCAD sellers take the price below key 100/200 day MAs tilting the bias to the downside
- Forexlive Americas FX news wrap: Non-farm payrolls beat estimates but unemployment rises
Saudi Arabia will make a further voluntary oil production cut in July, by 1 million barrels/day. The drop in output is only for one month, but the country’s energy minister said it could be extended. OPEC+ cuts to output already made that were to last until the end of this year were extended until the end of 2024. There is more detail in the post above (bolded).
Once futures markets opened on Sunday evening, US Eastern time, oil prices popped higher with a gap. The gap has since been (almost) filled.
Ranges across major FX were much more subdued. EUR, JPY, GBP, CHF all fell small against the USD. While CAD had risen a little its since fallen back. AUD and NZD and very little net changed on the day after minor moves.
News flow apart from oil was light. The data focus were the China (services and composite) PMIs from Caixin/S&P Global for May. These came in strong, see bullets above. Of note also was the privately surveyed Australian inflation data for May, which leapt from +0.2% m/m in April to +0.9% m/m in May. This will raise eyebrows at the Reserve Bank of Australia, which meets tomorrow. The consensus expectation is for an on hold decision but a cash rate hike cannot be ruled out at this very much ‘live’ meeting.
Asian equity markets:
Japan’s Nikkei 225 +1.6%
China’s Shanghai Composite +0.3%
Hong Kong’s Hang Seng +0.5%
South Korea’s KOSPI +0.4%
Australia’s S&P/ASX 200 +1.1%
