- China May trade data: USD denominated exports +7.6% y/y (beat) and Imports +1.8% (miss)
- Stellar line up of ECB speakers Friday - Lagarde, Schnabel, Holzmann
- China small and medium-sized banks have lowered their deposit rates
- FOMC official Cook speaks Friday - won't be of interest to traders
- PBOC sets USD/ CNY mid-point today at 7.1106 (vs. estimate at 7.2430)
- Japan finance minister Suzuki says will take action against excessive FX moves
- AUD traders heads up ICYMI - RBA Deputy Governor Hauser to speak on the economic outlook
- Japan data shows April household spending fell from March, down 1.2% m/m
- JP Morgan says a big miss, or beat, on the US jobs report (NFP) could flip the narrative
- New Zealand data: Manufacturing sales fell in Q1, down 0.4% q/q (prior -0.6%)
- Deutsche Bank's Back To The Future NFP preview, longest low unemployment run since 1950s
- ANZ expect the first Reserve Bank of New Zealand rate cut in February 2025 (prior May '25)
- US jobs numbers due Friday - Non-farm payrolls preview
- JP Morgan says its Fair Value Model has EUR/USD at 1.10
- Forexlive Americas FX news wrap 6 Jun: ECB cuts rates but it is a hawkish cut.
- ECB's Holzmann dissented on the rate cut
- ICYMI - the ECB cut rates by 25bp and leaves the future path unclear
- US stocks end the day with mixed results/little changed
- Trade ideas thread - Friday, 7 June, insightful charts, technical analysis, ideas
Major FX rates tracked relatively subdued ranges while traders awaited the US jobs report due Friday morning US time.
Locally here the focus was on Chinese trade data for May, which showed exports accelerating well ahead of expectations, but imports slumping below expectations. The patchy recovery continues in China, some sectors performing well (export-focused, as shown today) and others not (domestic demand related).
Earlier we had April household spending from Japan. The m/m fell from March while the y/y rose for the first time in 14 months. We await further clarity from Japanese economic data for signals that wage rises are promoting consumer demand. The Bank of Japan meet next week and it would seem too early for them to decide to tighten a little further, but there are plenty of whispers that they’ll do just that. After two or so years of such whispers failing us (they were finally correct in March, to be fair) I’m wary.
Japan’s finance minister Suzuki was on the newswires with regular sort of verbal intervention remarks. USD/JPY has risen a touch on the session.
