- Downside risk for US employment, magnitude of September Fed interest rate cut in question
- China's National Bureau of Statistics (NBS) says PPI deflation will narrow in months ahead
- UBS says doesn't see reason for 50bp Federal Open Market Committee (FOMC) rate cut in Sept
- China July data: Retail sales +2.7% y/y (expected +2.6). Industrial production +5.1% y/y
- Japan's Economy minister Shindo says wages and income will improve
- TD asks if the King USD will maintain its reign?
- China House Prices for July 2024 -0.7% m/m and -4.9% y/y
- AUD/USD marked higher after the strong employment report
- Australian July unemployment rate 4.2% (vs. 4.1% expected)
- Australian Inflation Expectations for August 2024 have jumped from July
- No Medium-term Lending Facility (MLF) operation from the People's Bank of China today
- PBOC sets USD/ CNY mid-point today at 7.1399 (vs. estimate at 7.1461)
- Barclays forecast the next Bank of Japan rate hike in January 2025 (prior April 2025)
- Japan Q2 GDP +0.8% q/q (vs. +0.5% expected)
- RBNZ Governor Orr trimming monetary policy restraint is appropriate now
- Morgan Stanley flag potential 50bp Federal Open Market Committee (FOMC) Septembr rate cut
- Survey shows less than a quarter of Japanese firms approve of the recent yen intervention
- US Vice President Harris will lay out her economic agenda in a speech on Friday
- JP Morgan says the Fed has a green light for a 50bp rate cut in Sep. Here's the trigger.
- New Zealand retail sales data -0.1% m/m and -4.9% y/y
- Reserve Bank New Zealand Governor Orr: Definitely moving the right direction on inflation
- Fed's Goolsbee says he is growing more concerned about employment
- Nomura say around 150 is now the ceiling for USD/JPY. Forecast a BOJ rate hike in December
- Shares of Ulta Beauty surge after Warren Buffett reveals stake
- Forexlive Americas FX news wrap: CPI continues to cool
- Trade ideas thread - Thursday, 15 August, insightful charts, technical analysis, ideas
Reserve Bank of New Zealand Governor Orr spoke to various media, further conveying his message that the Bank intends to lower interest rates toward a more neutral setting at a measured pace. The RBNZ began its easing cycle on Wednesday, Orr was out selling it today again. The New Zealand dollar hasn’t done a lot on the session. It dipped but bounced back with the rising AUD (more to come on this)
From Japan we had data for Q2 GDP, showing the economy expanded by a much faster-than-expected annualised 3.1% in the quarter. It rebounded from the contraction in Q1. Consumption grew strongly. The Bank of Japan will be eyeing this as support for its rate hike cycle. The yen weakened a little but is back to mid range and thereabouts as I post.
Australia’s economy added 58,200 jobs (full-time employment rocketed 60,500, for a third month of strong gains) in July after the 52.2K rise in June. Participation rose to a record high, while the unemployment rate ticked up a little to 4.2%. AUD/USD has risen from pre-data lows of under 0.6575 to 0.6620+ as I post.
The regular People’s Bank of China Medium-term Lending Facility (MLF) operation did not take place today. Its been scheduled for August 26. The Bank added in nearly 600bn yuan in a 7-day reverse repo, which more than covers the 401bn yuan of MLF maturing. See bullets above for more info if needed.
