Market Roundup
- Japan Trade balance (yen), 418.8 bln vs 439.9 bln, f'cast 392.0 bln.
- Japan July Exports, 13.4% vs 9.7%, forecast 13.6.
- Japan July Imports, 16.3% vs 15.5%, forecast 17.0.
- Australia July Employment, 27.9k vs revised 20k, forecast 20.0k.
- Australia July Full time employment, -20.3k vs revised +69.3k.
- Australia July Unemployment rate, 5.6% vs revised 5.7%, forecast 5.6%.
- Australia proposes stronger money laundering rules, includes bitcoin.
- UK exporters' confidence softens, says British Chambers of Commerce.
- British consumers try to cut costs at fastest pace in 2 years - Nielsen survey.
- New Zealand consumer confidence bounces in August - ANZ survey.
- ANZ - Roy Morgan New Zealand consumer confidence index 126.2 in august from 125.4 previous month.
- NZ Q2 producer price index outputs +1.3 pct vs previous quarter.
- NZ Q2 producer price index inputs +1.4 pct vs previous quarter.
- South Korea's Moon says North Korean nuclear-tipped ICBM is a "red line".
- Fed, split by inflation, should forge on with rate hikes –Mester.
Economic Data Ahead
- (0430 ET/0830 GMT) UK Jul Retail sales, 0.2% m/m, 1.4% y/y eyed; last 0.6%, 2.9%.
- (0500 ET/0900 GMT) EU June Eurostat trade NSA (Eur), 22.9 bln eyed, last 21.4 bln.
- (0500 ET/0900 GMT) EU July Inflation final, -0.5% m/m, 1.3% y/y eyed; last 0.0%, 1.3%.
Key Events Ahead
- No major events and auctions scheduled for the day.
FX Recap
USD: The dollar's index against a basket of six major currencies, USD slipped to 93.39 from Wednesday's three-week high of 94.145.
EUR/USD: The euro gained 0.1 percent in early Asian trade to $1.1780, recovering from the previous day's low of $1.1681, its lowest level in nearly three weeks. The euro held firmer against sterling, fetching 91.335 pence, just under its Oct 11 high of 91.405, which is the highest level since 2009 except for a few moments during the pound's flash crash on Oct 7. The euro has been strengthening against sterling since April on speculation Brexit will hurt the UK economy more than it does the euro zone. Immediate support was seen 1.1682 and resistance was seen at 1.1838 marks.
USD/JPY: The yen rises gradually against U.S. dollar and was trading around 109.80 marks. Pair made intraday high at 110.21 and low at 109.66 levels. A sustained close above 110.75 is required to take the parity higher towards 111.33, 112.20, 113.12, 115.37 and 117.42 marks. Alternatively, a daily close below 110.20 will drag the parity down towards 108.13 levels. Japan’s July trade balance total yen decrease to 418.8 bln JPY (forecast 392.0 bln jpy) vs previous 439.9 bln JPY.
GBP/USD: The sterling held steady around $1.2900. The Britain's pound recovered from its lowest levels against the euro in 10 months on Wednesday after data showed wages rising faster than expected in the three months to June and the unemployment rate falling further. Pair made intraday high at $1.2909 and low at $1.2883 mark. A sustained close above $1.2890 will take the parity higher towards $1.3022 marks. Alternatively, reversal from key resistance will take the parity down towards $1.2625 marks.
AUD/USD: The Australian dollar stood at $0.7933, maintaining Wednesday's 1.3 percent gain, its biggest daily rise in about a month. The Aussie gains against major peers on the back of higher than expected employment data. Australia July employment increase to 27.9 k (forecast 20.0 k) vs previous 20 k (revised from 14.0 k). Australia’s July unemployment rate decrease to 5.6 % (forecast 5.6 %) vs previous 5.7 % (revised from 5.6 %).
NZD/USD: The New Zealand dollar rose to $0.7324, from $0.7223 the previous day, a windfall from a weaker U.S. dollar and a strong domestic economy. The currency faces technical resistance in the $0.7416/46 zone.
Equities Recap
Japan’s Nikkei was trading 0.07 pct lower at 19,714.25 points.
Hong Kong’s Hang seng was trading 0.09 percent lower at 27,392.29 points.
Australia’s S&P/ASX 200 was trading 0.04 pct lower at 5,783.50 points.
Shanghai composite index to open up 0.2 pct at 3,253.85 points and China's CSI300 index to open up 0.2 pct at 3,707.07 points.
Taiwan stock was trading around 0.70 pct higher at 10,361.78 points.
India’s NSE Nifty was trading around 0.30 percent higher at 9,926.15 points and BSE Sensex was trading at 0.31 percent higher at 31,882.25 points.
South Korea’s kospi was trading 0.51 percent higher at 2,361 points.
Commodities Recap
Oil prices edged up early on Thursday, clawing back some ground after losses in the previous session. Traders said the market was range-bound as falling crude inventories provided price support while high output was capping gains. Brent crude futures, the international benchmark for oil prices, were at $50.43 per barrel at 0101 GMT, up 16 cents, or 0.3 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $46.88 a barrel, up 10 cents, or 0.2 percent.
Gold rose on Thursday as the dollar remained subdued after minutes from the U.S. Federal Reserve's July meeting hinted at a delay in further rate hikes, while palladium hit a fresh 16-year high. Spot gold was up 0.3 percent at $1,287.01 per ounce by 0340 GMT, after gaining nearly 1 percent the previous day. U.S. gold futures for December delivery rose 0.8 percent to $1,292.80 per ounce.
Treasuries Recap
New Zealand government bonds gained, sending yields 1 basis point lower at the long end of the curve.
Australian government bond futures eased, with the three-year bond contract down 2 ticks at 98.020. The 10-year contract was off 2 ticks at 97.3350.
