Market Roundup
- "Enough is enough" PM May says after London attackers kill seven
- Japan May svcs PMI 53, best since Aug ’15, Apr 52.2, comp 53.4 vs 52.6
- China May Caixin svcs PMI, 52.8, last 51.5
- China's new border trade zone may be less than it seems
- IMF warns US fiscal uncertainty, China's credit growth pose risk to Asia
- Australia Q1 bis inventories q/q, +1.2% vs f'cast 0.5%; last 0.0%
- Australia Q1 gross cos profits q/q, +6.0%; last +20.1%
- Australia May new vehicle sales, 102,901, +6.4% - VFACTS
- Australia limping to the finish line for global growth record
- Sovereign investors raise property holdings, wary of UK on Brexit
- UK manufacturers see brighter outlook as world economy grows
Economic Data Ahead
- (0315 ET/0715 GMT) Spain May Svcs PMI, 57.5 eyed; last 57.8
- (0345 ET/0745 GMT) Italy May Markit/ADACI Svcs PMI, 55.4 eyed; last 56.2
- (0350 ET/0750 GMT) France May Markit Comp PMI, 57.6 eyed; last 57.6
- (0355 ET/0755 GMT) Germany May Markit Comp Final PMI, 57.3 eyed; last 57.3
- (0400 ET/0800 GMT) Eurozone May Markit Comp Final PMI, 56.8 eyed; last 56.8
- (0430 ET/0830 GMT) Great Britain May Markit/CIPS Svcs PMI, 55.0 eyed; last 55.8
Key Events Ahead
- No major economic events are scheduled
FX Beat
DXY: The dollar rebounded after slumping to multi-month lows versus its major peers on the back of downbeat U.S. jobs data. The greenback against a basket of currencies traded 0.1 percent up at 96.81, having touched a low of 96.65 on Friday, it’s lowest since Nov. 9. FxWirePro's Hourly Dollar Strength Index stood at -100.83 (Highly Bullish) by 0500 GMT.
EUR/USD: The euro slightly eased after rising to a near 7-month high in the previous session on the back of disappointing U.S. NFP data-led massive dollar sell-off across the board. The European currency traded 0.1 percent down at 1.1269, having touched a high of 1.1285 on Friday, its highest since Nov 9. FxWirePro's Hourly Euro Strength Index stood at 25.65 (Neutral) by 0400 GMT. Investors’ attention will remain on Eurozone's Markit Services and Composite figures, ahead of the U.S. Nonfarm productivity and Markit services and factory orders data. Immediate resistance is located at 1.1283 (Previous Session High), a break above targets 1.1300. On the downside, support is seen at 1.1248 (78.6% retracement of 1.1109 and 1.1285), a break below could drag it near 1.1210 (10DMA).
USD/JPY: The dollar rebounded after falling to an early 3-week low, amid a recovery in risk sentiment, especially after the Chinese services PMI came in much stronger than expectations. The major traded 0.1 percent up at 110.67, having touched a low of 110.30 earlier, its lowest since May 18. FxWirePro's Hourly Yen Strength Index stood at -21.84 (Neutral) by 0400 GMT. Investors’ will continue to track broad based market sentiment, ahead of the U.S. Nonfarm productivity and Markit services and factory orders data. Immediate resistance is located at 110.97 (61.8% retracement of 112.12 and 110.30), a break above targets 111.23 (10-DMA). On the downside, support is seen at 110.23 (May 18 Low), a break below could take it near 110.10 (Mar 27 Low).
GBP/USD: Sterling slumped after the third terrorist attack in Britain ahead of Thursday's UK election killed at least seven people on Saturday. The major trades 0.1 percent down at 1.2868, hovering towards a low of 1.2769 hit on Wednesday, its weakest since Apr. 21. FxWirePro's Hourly Sterling Strength Index stood at 14.33 (Neutral) by 0400 GMT. Investors’ will continue to track developments surrounding UK elections, ahead of the UK Markit service PMI. Immediate resistance is located at 1.2904 (10-DMA), a break above could take it over 1.2946 (May 26 High). On the downside, support is seen at 1.2829 (June 1 Low), a break below targets 1.2800. Against the euro, the pound traded 0.1 percent down at 87.53 pence, having touched a near 3-month low of 87.67 earlier.
AUD/USD: The Australian dollar rose to a 5 day peak after firmer-than-expected business inventories and other domestic data lessened the risk of a contraction in economic growth. The Aussie trades 0.2 percent up at 0.7456, having hit a low of 0.7371 on Friday, it’s weakest since May 12. FxWirePro's Hourly Aussie Strength Index stood at -36.71 (Neutral) by 0500 GMT. Investors will continue to digest upbeat domestic data, ahead of U.S. economic releases. Immediate support is seen at 0.7371 (Previous Session Low), a break below targets 0.7336 (May 11 Low). On the upside, resistance is located at 0.7461 (38.2% retrace of 0.7517 and 0.7371), a break above could take it near 0.7482 (23.6% retrace).
NZD/USD: The New Zealand dollar edged down, but was still within reach of a three-month high touched on Friday amid quiet trading due to a local public holiday. The Kiwi trades 0.4 percent down at 0.7116, having touched a peak of 0.7146 on Friday, its strongest level since Mar. 2. FxWirePro's Hourly Kiwi Strength Index was at 10.51 (Neutral) by 0500 GMT. Investors’ will continue to track overall market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.7146 (Previous Session High), a break above could take it near 0.7200. On the downside, support is seen at 0.7088 (5-DMA), a break below could drag it till 0.7067 (50.0% retracements of 0.7058 and 0.7146).
Equities Recap
Asian shares edged down, while the dollar rebounded from a seven-month low touched after U.S. jobs growth in May missed expectations.
MSCI's broadest index of Asia-Pacific shares outside Japan was slightly lower.
Tokyo's Nikkei gained 0.1 percent to 20,208.20 points, Australia's S&P/ASX 200 index fell 0.7 percent to 5,748.70 points and South Korea's KOSPI eased 0.01 percent to 2,371.71 points.
Shanghai composite index fell 0.6 percent to 3,086.06 points, while CSI300 index was trading 0.7 percent down at 3,462.95 points.
Hong Kong’s Hang Seng was trading 0.2 percent lower at 25,861.92 points. Taiwan shares added 0.7 percent to 10,226.84 points.
Commodities Recap
Crude oil prices rose more than 1 percent, rebounding from recent lows as tensions in the Middle East where crude exporter Saudi Arabia and other Arab states cut off ties with liquefied natural gas (LNG) and condensate shipper Qatar. International benchmark Brent crude was trading 1.2 percent up at $50.54 per barrel by 0416 GMT, having hit a low of $48.99 the prior session, its weakest since May 10. U.S. West Texas Intermediate traded 1.1 percent up at $48.28 a barrel, after falling as low as $46.77 on Friday, its lowest since May 10.
Gold prices rose to its highest in over six weeks earlier, as a disappointing U.S. jobs report appeared to weaken the prospects for an aggressive string of interest rate hikes in the United States. Spot gold gained 0.1 percent to $1,280.49 per ounce by 0420 GMT, having touched a peak of $1,281.90 an ounce, its strongest since April 24. U.S. gold futures for August delivery rose 0.3 percent to $1,283.4 an ounce.
Treasuries Recap
The 10-year U.S Treasury yield stood at 2.167 percent higher by 0.009 bps, while 5-year yield was 0.01 bps higher at 1.728 percent.
The Australian bonds started the week on a strong note, following expectations of a softer gross domestic product (GDP) of the country in the first quarter of this year. The yield on the benchmark 10-year Treasury note slumped nearly 3 basis points to 2.39 percent, the yield on 15-year note plunged 3-1/2 basis points to 2.77 percent while the yield on short-term 2-year traded 1-1/2 basis points lower at 1.57 percent.
