- Reserve Bank of Australia Governor Lowe is speaking Wednesday morning Australia time
- Quant-funds’ net exposure to U.S. stocks is at the highest level since December 2021
- Bank of Japan Governor Ueda says we have not reached sustainable 2% inflation
- Australia Building Permits (April) -8.1% m/m (expected +2.0%)
- PBOC sets USD/ CNY central rate at 7.0818 (vs. estimate at 7.0821)
- OPEC secretary general says will welcome Iran back to the oil market when sanctions lifted
- Japanese Finance Minister Suzuki wants fiscal policy for yen credibility
- Morgan Stanley outline 3 factors weighing down on China’s consumers
- Australian weekly Consumer Confidence survey 76.8 (prior 77.9)
- Australian Treasury secretary says he expects nominal wage growth to accelerate
- Japan April unemployment rate 2.6% (expected 2.7%)
- UK shop price inflation rises to record high, industry data for May 2023 shows
- Preview of China official PMI data - manufacturing is likely to have contracted even more
- New Zealand Building Permits (April) -2.6% m/m (prior +6.6%)
- ECB's Wunsch: continued expansive fiscal policy requires stronger monetary policy reaction
- Goldman Sachs on China's economy: Confidence a big problem, private investment very weak
- ICYMI: ECB's de Cos says Bank needs to hike higher, hold "for an extended period of time"
- Forexlive Americas FX news wrap: USD/JPY regains ground in holiday-thinned trade
- China declined a US request to meet with Secretary of Defense Lloyd Austin
- Trade ideas thread - Tuesday, 30 May 2023
USD/JPY was a mover during Asia trade, falling from highs circa 140.50 early on to briefly under 140.00. News flow was limited but with remarks from Japan’s finance minister Suzuki and also from Bank of Japan Governor Ueda. Ueda said once again that he will be maintaining loose policy.
The US dollar lost ground more widely, AUD/USD moving above 0.6550 at one stage despite poor data:
- consumer sentiment was the weakest calendar-month average since December 1990
- approvals to build new homes fell to the lowest level in 11 years
As I post its fallen back to be little changed on the session. NZD/USD is also more or less flat while EUR and GBP have added on a little.
There was no fresh US debt limit news. If you are just back from a long weekend (lucky you!) scroll through the wraps for Monday. Biden and McCarthy reached an agreement and now its over to Congress for voting. Furious lobbying to gain the required approval is ongoing. The feeling at present is that McCarthy will get the numbers in the House (in combination with Dem votes).
Asian equity markets:
Japan’s Nikkei 225 -0.3%
China’s Shanghai Composite -0.7%
Hong Kong’s Hang Seng -0.7%
South Korea’s KOSPI +0.8%, back from a Monday holiday
Australia’s S&P/ASX 200 +0.02%
ADDED - after I posted the USD turned around quickly to be higher on the day ... made a liar out of me it did.
