- Speakers from the US Federal Reserve today include Collins, Bostic
- European Central Bank speakers on Thursday include Schnabel and de Guindos
- Chief Economist at the Bank of England Huw Pill speaks today
- China’s local governments accelerating the pace of borrowing for infrastructure investment
- PBOC says it'll boost loans to private firms, encourage bond buying, and more
- AUD/USD popped a little higher on the Chinese PMIs and the batch of Australian data
- Australian data - Private sector credit in July +0.3% m/m from +0.3% in June
- Australian data - Q2 Capex headline rose 2.8% vs. +1.2% expected
- BOJ Nakamura says Japan is no longer in deflation, but that mindset yet to be eradicated
- China August Manufacturing PMI 49.7 (vs. expected 49.2)
- PBOC sets USD/ CNY reference rate for today at 7.1811 (vs. estimate at 7.2765)
- Hong Kong Stock Exchange may be closed on Friday due to Super Typhoon Saola
- New Zealand August Business Confidence -3.7% (vs. prior -13.1)
- Australia and the European Union will resume free trade talks on Thursday
- Lloyds Bank Business Barometer shows UK business optimism at an 18-month high
- A Japanese government official says domestic and global demand fell in July
- UK car production rose for the sixth consecutive month in July
- Japan Industrial Production (July, preliminary) -2.0% m/m (vs. expected -1.4%)
- Japan Retail Sales (July) +6.8% y/y (vs. expected +5.4%)
- South Korean industrial output in July -2.0% m/m (vs. expected -0.4%)
- Chinese developers face US$38 bn RMB & dollar bond payments due over the next 4 months
- Goldman Sachs is watching for Chinese stock markets to trade up
- Saudi Arabia is expected to announce next week that its extending its crude oil output cut
- ANZ forecast that USD/JPY is more likely to reach 150 than 140 in the coming month
- US Justice Department is investigating the use of Tesla funds to build a house for Musk
- Chinese authorities have asked Citic, CCB to help stabilize struggling shadow bank
- Barclays says US stock market pullback in August was a buyers strike
- Federal Reserve is quietly demanding that regional lenders shore up liquidity planning
- Australia's monthly CPI data - slowing rate of inflation is an "encouraging development"
- China ICYMI - A PBOC official says banks should step up lending to private companies
- Forexlive Americas FX news wrap 30 Aug: USD recovers after a move lower stalls.
- Brent oil: Barclays lowers its 2023 price forecast to $84 (from $87), raises 2024 forecast
- Nasdaq gains for a fourth straight day
The session focus was on the official August PMI data from China’s National Bureau of Statistics (NBS). As in July the manufacturing PMI remained in contraction while the non-manufacturing in expansion. Manufacturing improved from July and also beat expectations while the non-manufacturing dipped a little from July and missed its estimate. More in the bullets above.
The data prompted a small jump for the Australian dollar and the Kiwi. Some improving local data in Australia also helped. Australian Q2 business capital expenditure, for example, hit its highest in seven and a half years, easing supply chain bottlenecks helped with equipment investment, which hit a record high for the quarter.
USD/JPY lost ground on the session. Data from Japan today indicated a poor performance for industrial output in July. Estimates for August and September are for improvement. The Japanese government downgraded its assessment of the sector. Slowing demand both domestically and globally was cited by a government spokesperson.
A speaker from the Bank of Japan policy board gave no indication he was keen on reducing easy policy any time soon.
Asian equity markets:
Japan’s Nikkei 225 +0.6%
China’s Shanghai Composite -0.4%
Hong Kong’s Hang Seng 0%
South Korea’s KOSPI -0.4%
Australia’s S&P/ASX 200 0%
