Forex and Bitcoin news for Asia trading Wednesday 1 August 2018
- China Caixin / Markit Manufacturing PMI: 50.8 (expected 50.9)
- PBOC sets USD/ CNY reference rate for today at 6.8293 (vs. yesterday at 6.8165)
- More coming in on the US proposed 25% tariffs on Chinese imports
- Japan final manufacturing PMI for July: 52.3 (flash was 51.6, prior 53.0)
- Australia Home Prices Index (July) from CoreLogic: -0.6% m/m (prior -0.3%)
- ICYMI: China to loosen rules for foreign firms buying strategic stakes
- UK data: BRC Shop Price Index in July -0.3% y/y (prior -0.5%)
- Time for another Australian Manufacturing PMI, this one drops too
- US said to plan higher tariff on USD 200bln of imports from China
- China press: Big economic slowdown pressures
- NZ Q2 report: Both employment change and unemployment higher than estimates
- AUD data - AiG Manufacturing PMI 52.0 in July from 57.4 in June
- China state media says GDP will achieve target despite challenges
- Here are the BOJ JGB purchase plans for August
- Goldman Sachs on BOJ: "extremely low ... interest rates for an extended period of time"
- Trade ideas thread - Wednesday 1 August 2018
- OIL - private inventory data showing surprise build
The news of the day centred on US proposals to jack up the tariffs on Chinese imports from 10% to 25%. Please note, these are only proposals at this stage. But, having said that a constant broken record mantra of mine has been not to underestimate President Trump, so do keep an eye out for more on this.
It certainly didn't take too much to rattle the market a little. AUD/JPY sold off on the headlines, as did the offshore yuan. The PBOC followed up with another beating for the onshore yuan, taking it to its lowest reference rate setting since of May of 2017 today (against the USD).
The ramifications of the BOJ 'lower for much, much, much longer' (my interpretation of their policy announcement yesterday) continued to wash through markets here today. USD/JPY had traded up overnight and has not pulled back at all today. JGB yields continue to threaten higher.
On the data front we got Q2 jobs report from NZ, with a higher than expected unemployment rate, offset somewhat by higher employment and continued wage growth (not overly strong, admittedly). NZD was a tad soft on the results.
Elsewhere it was mainly lower tier data. One that might have passed you by was the manufacturing PMI from South Korea, it continued in 'contraction' for a fifth consecutive month. South Korea is often referred to as the 'canary in the coal mine' for the global economy. After five months of deterioration that canary has long ago started pushing up the daisies but I guess today's data show no sign of resurrection for the poor creature.
EUR has lost a few tics today (against the USD), as has GBP. CHF has been an underperformer, though, USD/CHF up 20+ points or so during the timezone (OK< not a large move but hey, its Asia!).
AUD, NZD both weaker. USD/CAD is little changed.
Still to come:
