Forex and Bitcoin news for Asia trading Friday 10 August 2018
- Big data day Friday - UK, US and Canada, all the previews for GDP, CPI and jobs
- Recapping the Japan second quarter strong GDP growth result
- ANZ have chopped their NZD forecast to 0.62 (from 0.67) for end 2018
- RBA SoMP: Decline in AUD due to USD strength would be positive for growth, inflation
- PBOC sets USD/ CNY reference rate for today at 6.8395 (vs. yesterday at 6.8317)
- How to lose $3 bn of Bitcoin (crypto kidnapping!)
- Japan PPI for July 3.1% y/y (expected 2.9% y/y)
- Japan Q2 preliminary GDP 0.5% q/q (vs. expected +0.3%)
- NZ July Card Spending Retail: +0.7% m/m (expected 0.5%)
- NZ manufacturing PMI for July: 51.2 (prior 52.8)
- I think the RBNZ is trolling the algos with a 'managed exit' tweet
- Trade ideas thread - Friday 10 August 2018
- NZD traders - Fonterra has cut its 2017/2018 farm gate milk price
Japanese second quarter economic growth data was a focus today for the time zone, preliminary Q2 GDP coming in at a solid beat on the central estimate.there is more in the bullets above but in a nutshell there was broad strength: domestic demand, business capex, exports ... The deflator was, as it usually is, a disappointment for the Bank of Japan and its inflation target. For Q2 this inflation measure came in at 0.1% y/y.
USD/JPY has seemingly reacted to the good growth and not the way below target inflation; from circa 111.15 it dropped to just under 110.90 before settling a little. It remains little off its session lows as I update.
But let's give it some credit, at least it moved ....
Oh, I should give a shout out to Japanese PPI data, the July reading cracking above 3% y/y.
For the AUD today we had input from the Reserve Bank of Australia, their August 2018 Statement on Monetary Policy. There were only minor changes from the Bank from the May Statement, a raising of GDP forecasts but a lowering of inflation forecasts. More in the bullet above. The Australian dollar did very little indeed before, during, or after.
From New Zealand we had PMI (down) and retail sales (up) data. Fonterra lowered their milk price. NZD/USD has ticked a wee bit net higher over the session after a small earlier dip. After yesterday's thrashing a relief was in order, so far it has been small only.
EUR, GBP have both also added a few tics after overnight losses on no Federal Reserve specific news nor data.
USD/CAD and USD/CHF are both little changed.
The PBOC set the mid rate for the USD/CNY a little weaker to finish off the week.
A big, big Friday still to come:
UK GDP data for Q2, preliminary, is due at 0830GMT
- expected 0.4% q/q, prev 0.2%
- expected 1.3% y/y, prev 1.2%
Check out the previews here:
--And from the US, US CPI data for July is due on 10 August 2018 at 1230GMT
- CPI m/m expected 0.2%, previous 0.1%
- CPI excl food and energy m/m expected 0.2%, previous 0.2%
- CPI y/y expected 2.9%, previous 2.9%
- CPI y/y excl food and energy m/m expected 2.3%, previous 2.3%
The previews for this are here
Canada, Labour Market Report for July
Change in Employment
- expected +17K, prior +31.8K
And Unemployment rate
- expected 5.9%, prior 6.0%
What to expects for this are here
- Canadian jobs market report is due on Friday, preview
- Canadian jobs market report is due on Friday, more preview
Forex options expiries for the 10am NY cut
--
Have a great weekend all. I know the TRY is thinking TGIF....
