- G20 committee to strike reassuring tone on China.
- Japan Economic Minister Amari - Recent China stock market falls don't reflect fundamentals, China economic foundation still stable.
- IIF warns of emerging market sell-off of crisis proportions.
- Foreign investors navigate turmoil in Chinese markets with new playbook.
- Japan July total cash earnings +0.6% y/y, real wages +0.3%, first gain since April '13, overtime pay +0.6%, bonus payments +0.3%.
- NY Fed - Swaps with foreign CBs $137 mln 9/2 week, $2 mln with BOJ, rest ECB.
- (0245 ET/0645 GMT) France August consumer confidence index, 94.0 eyed; last 93.0.
- (0315 ET/0715 GMT) Switzerland August CPI, -0.2% m/m, -1.4% y/y eyed; last -0.6%, -1.3%.
- (0330 ET/0730 GMT) Sweden July industrial output, +0.3% m/m eyed; last -1.0% m/m, +1.2% y/y.
- (0330 ET/0730 GMT) Sweden July manufacturing new orders; last +11.8% y/y.
- (0830 ET/1230 GMT) US August non-farm payrolls, +220k eyed; last +215k.
- (0830 ET/1230 GMT) US August unemployment, 5.2% eyed; last 5.3%, participation 62.6%.
- (0830 ET/1230 GMT) US August average workweek, 34.5 hrs eyed; last 34.6 hrs.
- (0830 ET/1230 GMT) US August average earnings, +0.2% m/m eyed; last +0.2%.
Key Events Ahead
- China market holiday.
- N/A Ankara G20 FinMin, central banker meeting (till Saturday).
- N/A UK DMO GBP2.0/1.0/2.0 bln 1/3/6-month treasury bill auctions.
- (0200 ET/0600 GMT) IMF Kochhar speech at Tokyo seminar.
- (0530 ET/0930 GMT) Riksbank DepGov Skingsley speech in London.
- (0810 ET/1210 GMT) Richmond Fed Lacker speech in Richmond.
FX Recap
EUR/USD is supported above 1.1100 levels and currently trading at 1.1130 levels. It has made intraday high at 1.1139 and low at 1.1114 levels. The ECB struck a dovish tone when President Mario Draghi signalled that the bank stood by to expand its quantitative easing program if necessary. The ECB downgraded its economic growth and inflation forecasts in light of recent emerging-market turmoil and the continued weakness in oil prices. Attention will quickly turn to the US though, with US non-farm payrolls on tap for Friday. Initial support is seen around at 1.1015 and resistance at 1.1363 levels.
USD/JPY is supported below 120.00 levels and posted a high of 120.18 levels. It has made intraday low at 119.10 and currently trading at 119.42 levels. The Japanese yen made strong advances against the greenback on Friday as investors favoured less risky assets ahead of tonight's US non-farm payrolls report. Traders braced for the worst ahead of Friday's US employment figures, which have the power to extinguish any bets of the Federal Reserve (Fed) raising interest rates later this month, sending safe-haven assets including the yen higher on Friday. Initial resistance is seen at 123.20 and support is seen at 118.42 levels.
GBP/USD is supported below $1.5300 levels. It made an intraday high at 1.5259 and low at 1.5226 levels. Pair is currently trading at 1.5235 levels. Sterling dropped against the dollar on Thursday after the British services sector grew at its weakest pace in more than two years in August. The services PMI fell to 55.6 from 57.4 in July, well below consensus forecasts of a 57.6 reading. G-20 finance ministers and central bank governors are due to meet in Ankara, Turkey, to discuss global economic affairs. US Treasury Secretary Jacob J. Lew and German Finance Minister Wolfgang Schaeuble are expected to attend. Today is data free session for the UK. Market will eye on US NFP numbers for the further directions. Initial support is seen at 1.5220 and resistance is seen around 1.5436 levels.
NZDUSD is supported above 0.6300 levels and trading at 0.6355 levels and made intraday low at 0.6351 and high at 0.6397 levels. The Kiwi erased a part of early gains and remains under pressure ahead of US NFP numbers. While the other Antipodeans emerged the biggest loser, as markets give up riskier assets in search safer bets. The Kiwi was heavily sold in to the prevailing risk-off sentiment and now trades near lows at 0.6252 levels. Initial support is seen at 0.6195 and resistance at 0.6511 levels.
AUD/USD is supported below 0.7000 levels and trading at 0.6968 levels. It has made intraday high at 0.7021 levels and low at 0.6950 levels. The Australian dollar fell to its lowest in six-and-a-half years against the greenback on Friday, and some strategists say the currency has further to go before finding a new floor. On Friday afternoon in Sydney the AUD/USD pair traded 0.70% lower at $0.6968, down from $0.7017 where the cross closed in New York on Thursday and it's weakest since early 2009. RBA has held a neutral stance since May, when the bank last cut interest rates, this week's GDP data certainly builds a case for further easing. Retail data on Thursday also suggested consumer demand could do with a booster, with sales down 0.1% month-on-month in July, missing the 0.4% rise forecast by analysts. Initial support is seen at 0.6945 and resistance at 0.7122 levels.
Equity Recap
Japan's benchmark Nikkei 225 index tumbled 1.23% to 17,958.53 points within the first hour of trade, while Tokyo's broader Topix gauge fell 1.13% to trade at 1,458.18 points.
Chinese markets were closed for the second day in a row as the nation celebrated Victory Day.
Korea's benchmark Kospi index shed 0.58% to trade at 1,904.47 points on Friday morning in Seoul and Hong Kong's benchmark Hang Seng index advanced 0.78% to 21,098.53 points at the opening bell on Friday.
The benchmark Australian S&P/ASX 200 index wavered between gains and losses but was seen trading 0.14% higher at 5,034.60 points in Sydney, with miners' gains offsetting losses among financials.
New Zealand's benchmark S&P/NZX 50 index slipped 0.30% lower to 5,552.82 points this afternoon in Wellington.
Australia's S&P/ASX 200 index closes up 0.22 pct at 5,039.10 points.
Tokyo's Nikkei average closes down 2.15 pct at 17,792.16.
Treasury Recap
BOJ offers to lend Y400 bln of JGBs on spot basis through 9/7 as a secondary source of JGBs.
Thailand 35 bln baht, 14-day central bank bond average accepted yield 1.41836 pct.
10-year US treasury yield at 2.143 percent vs US close of 2.168 percent on Thursday.
New Zealand government bonds were unchanged with yields mostly flat along the curve.
Australian government bond futures rose, with the three-year bond contract up 2 ticks at 98.240. The 10-year contract added 3.5 ticks to 97.3200.
Commodity Recap
Crude futures were moving in the negative zone on Friday ahead of US non-farm payrolls data that will be the major market mover at the end of a volatile week. Futures for WTI dropped 1.58% to trade at $46.18 per barrel, while Brent futures were traded 1.26% lower at $50.18 per barrel.
Gold held declines from a two-day losing streak on Friday, ahead of a crucial U.S. jobs report as traders waited for clues about the timing of a Federal Reserve rate hike. Spot gold was little changed at $1,124.20 an ounce by 0348 GMT, after losing about 1 percent in the last two sessions. The metal, which fell to a one-week low of $1,121.35 on Thursday, was on track for a second straight weekly decline.
