Forex news for Asia trading on Thursday 1 July 2021
- Japan chief cabinet secretary Kato says weighing up an additional stimulus package
- Fierce heat wave in western Canada - whole town of Lytton reported on fire, evacuated
- Bank of Japan Q2 survey of business - recap of the Tankan
- China Caixin/Markit Manufacturing PMI for June 51.3 (expected 51.8)
- Australia coronavirus - Sydney is struggling to dampen new case growth
- Australian May month exports jump 6% vs 3% in April
- UK Times government is planning quarantine-free travel for the double-vaccinated by July 26
- PBOC sets USD/ CNY reference rate for today at 6.4709 (vs. yesterday at 6.4601)
- How the RBA could push back against markets bringing forward calls for a rate hike
- Japan - Jibun Bank/Markit Manufacturing PMI (final) for June: 52.4 (prior 53.0)
- BOJ official on the Tankan - noting impact of semi shortage on auto manufacturing
- South Korea trade data for June, both exports and imports surge as trade recovers
- BOJ Tankan Q2: Large Manufacturers Index 14 (vs. expected 15)
- Australia - Markit Manufacturing PMI for June 58.6 (final) (prior 60.4)
- New Zealand Building Permits for May -2.8% m/m (prior 4.8% m/m)
- Australia - AiG Manufacturing PMI for June: 63.2 (prior 61.8)
- El-Erian worries that inflation will not be transitory, too much "on-the-ground evidence" it will stay high
- ANZ warn the biggest regret the RBNZ may have is waiting too long to hike
- Australian economists have a dour outlook on its economy ahead - see no RBA rate hikes until April 2023
- Trade ideas thread - 1 July 2021
Data flow ramped up on the first day of the new month with:
- a round of PMIs across Asia with Australia, China, Japan, South Korea manufacturing PMIs all registering expansion,
- The Bank of Japan quarterly Tankan survey report showed much improved sentiment amongst Japanese business,
- Australian exports surged, and imports were higher also, in May (from April),
- Australian job vacancies were up more than 23% in the 3 months to May, and +57% from February of 2019 (that is, pre-Covid) indicating yet again that tightness in the labour market will continue (the RBA will be watching if this translates into wage pressures - the Bank meet on July 6).
On the news flow front it was quiet, with little to impact FX rates from the session. Central bankers and their comments/opinions were absent also.
As noted in the headline to this wrap major forex ranges were small again on the session with little of note to report. Gold has rallied a few dollars, up higher from its move up on Wednesday US time. Oil has added on a little gain also. Bitcoin has been quiet (for it), down a few hundred USD only.
Gold hourly candles, its first rally for the week in the past 24 hours:
