Forex trading headlines for Asia Tuesday 1 July 2014
- Australia – AIG Performance of Manufacturing index for June: 48.9 (vs. prior 49.2)
- Australia – ANZ Weekly Consumer Sentiment down 0.3% to 105.4
- Bank of Japan (BOJ) Tankan report for Q2
- Shanghai Securities News: Several Chinese banks selected to trial loosening of the loan-to-deposit ratio
- China Manufacturing Purchasing Managers Index (PMI) for June: 51.0 (vs. expected 51.0)
- Japan Labor Cash earnings for May: +0.8% y/y (expected +0.7%) and more here
- Japan – Markit/JMMA Manufacturing PMI for June (final): 51.5 (preliminary was 51.1)
- China HSBC/Markit Manufacturing PMI for June: 50.7 (expected 50.8)
EUR, GBP and CHF were all more or less sideways today, off by just a few tics against the USD.
USD/JPY and yen crosses, though, were more active, with yen weakening quietly but steadily throughout the morning Asian session. The Bank of Japan (BOJ)’s Tankan report was released with results perceived as less strong than hoped for except for the capex plans component, which surged to its highest since 2007 (see bullets, above). If that was a catalyst it was a positive one for yen crosses. On the plus side of the data ledger today was an improved China ‘official’ manufacturing PMI reading, while the HSBC version came in just marginally weaker (see bullets, above).
NZD/USD also traded higher in the early going, but topping out on the session above 0.8770 and subsequently giving back its gains since the NZ morning.
AUD/USD has been confined to a small range (as of writing) the market awaiting the RBA announcement and accompanying statement due at 0430GMT. No change to rates is the unanimous expectation, it’s the words that accompany it that will be of note (preview here).
Gold popped to a new high, just above 1330USD, but dipped back below quickly. Oil had a quiet session, but a little better bid.