- More RBA Gov Bullock - don't see interest rates coming down quickly
- New Zealand 2-year inflation expectations have dropped to 2.03% (prior2.3%)
- AUD/USD maintaining its session highs after RBA Governor Bullock hawkish again
- RBA Governor Bullock: Don't expect to be back in 2-3% target range until end of 2025
- Japan finance minister Suzuki says no comment on BOJ Uchida's remarks
- Goldman Sachs say a stock market plunge could reduce US GDP growth, hit Fed policy
- PBOC sets USD/ CNY reference rate for today at 7.1460 (vs. estimate at 7.1821)
- US oil output rose to record high last week
- Federal Reserve unlikely to pivot more dovish, USD seen supported
- BOJ Summary - one monetary policy board member suggested the neutral rate is at least 1%
- Japan data - June Current Account surplus smaller than expected, shrinks from May
- Swiss business lobby urges Swiss National Bank to act fast against franc (CHF) strength
- Iran may be rethinking launching a multi-pronged attack on Israel, US officials say
- "US not in a recession, despite the Sahm Rule indicator bearing my name saying that it is"
- Yen & Nikkei traders alert warning - more coming from the Bank of Japan today!
- JP Morgan Dimon says odds of a “soft landing” are around 35% to 40%, recession more likely
- Trade ideas thread - Thursday, 8 August, insightful charts, technical analysis, ideas
- Forexlive Americas FX news wrap: Soft bond auction helps to reverse risk trade
Yen swings continued again today in a wide range. Lows were around 145.45 and highs 146.85. The Bank of Japan published its ‘Summary’ of the July 30 – 31 meeting, sounding a little more hawkish than was indicated in the statement on the day. In stocks, the Nikkei net gained on the day. Dips in the yen (higher USD/JPY and yen crosses) helped equities.
AUD/USD gained on the session. As I post its sitting around its session high. Reserve Bank of Australia Governor Bullock spoke, with hawkish comments again (similar to those earlier this week). NZD/USD also gained, but has since given much of this back. The Reserve Bank of New Zealand published their inflation expectations survey. The critical 2-year expectation dropped back to barely above 2%. The Bank meets on August 14, and while an ‘on-hold’ decision is widely expected those looking for a rate cut next week had their hopes bolstered by this data today.
From China we saw large state banks selling large quantities of 7 year bonds. This appears indicative of Chinese authorities stepping up their actions against a record debt rally. State banks sold 10-years earlier in the week.
AUD holding its ground on the day:
