Forex news for Asia trading Friday 30 June 2017

  • China PMIs out today surged ... but there are a few 'buts'
  • More on this weekend's election in Tokyo
  • Japan politics - heads up for Tokyo election this weekend
  • Bloomberg on the yuan in June - "up on suspected intervention"
  • Australia - Private sector credit for May: +0.4% m/m (expected 0.4%)
  • Japan finance minister Aso: Economy recovering from deflation
  • PBOC sets USD/CNY mid-point today at 6.7744 (vs. yesterday at 6.7940)
  • China non-manufacturing PMI for June: 54.9 (prior 54.5)
  • China manufacturing PMI for June: 51.7 (expected 51.0)
  • AUD popping - China PMIs due at the top of the hour
  • Canada province (BC) government loses no confidence motion
  • Japan Industrial Production (May, preliminary): -3.3 % m/m (expected -3.0%)
  • Japan (May) Headline CPI: 0.4 % y/y (vs. 0.5% expected)
  • Japan - Overall Household Spending -0.1% y/y (expected -0.7%) + jobs data
  • UK data - GfK Consumer Confidence, June: -10 (vs. expected -7, prior -5)
  • New Zealand Building Consents (permits) May: +7.0 % m/m (prior -7.6%)
  • Where to for gold - the influence of Draghi, the USD, EUR, USTs ... & India
  • RBA monetary policy meeting - what to expect
  • BoE's Haldane - Bank repeatedly surprised by weak pay growth
  • Canada-EU trade agreement expected 'early summer'
  • BNZ on the RBNZ - revised their timing for an expected hike
  • Japan inflation data (and more!) due today - get set for another preview
  • ICYMI: Forexlive Americas FX news wrap: USD takes a tumble helped by falling stocks, higher German inflation.
  • Japan inflation data (and more!) due today - preview
  • Before Yellen goes to Congress to testify, a fed report on policy will be published
  • Welcome to the Friday trade ideas thread!
  • Economic calendar in Asia today is a biggie - Japan inflation!
  • Morgan Stanley CEO - today's stocks sell off is beginning of normalisation
  • Stick this in your diary: Yellen to testify on July 12

A mixed session for the USD with losses against those in the headline. EUR/USD lost a little ground but has since come back to be little changed at all. The CHF, too, lost a few points against the USD. Having said all this, the ranges we had here in Asia were only small for pretty much everything.

For the yen; USD/JPY is down a few points on the session, which weighed a little on yen crosses.

News and data flow was reasonably brisk today, with most focus on Japanese and Chinese data. These are in the bullets above, but here you go:

  • China non-manufacturing PMI for June: 54.9 (prior 54.5)
  • China manufacturing PMI for June: 51.7 (expected 51.0)
  • Japan Industrial Production (May, preliminary): -3.3 % m/m (expected -3.0%)
  • Japan (May) Headline CPI: 0.4 % y/y (vs. 0.5% expected)
  • Japan - Overall Household Spending -0.1% y/y (expected -0.7%) + jobs data

Japanese inflation is again, and unsurprisingly, a disappointment for the government and Bank of Japan. The target is stable at 2% for inflation ex-food & energy. Its at 0%, same as last month. So, not even close to target, at not moving towards it either. Japanese consumers can't be too upset with zero inflation, though, right?

Other data Japan was mixed: household consumption was weak again but much less so than it has been; industrial production dipped on the month (May data today) but the outlook is for it to have picked up again in June; while the jobless rate rose (said by the government to be due to higher entrants into the workforce and people changing jobs ... you be the judge on that!).

China - and we got official PMIs (private, unofficial PMIs will follow next week). Both improved but ANZ say the manufacturing PMI surge is 'uneven' and highlight this as a concern: China PMIs out today surged ... but there are a few 'buts'

AUD/USD and NZD/USD were both standouts on the session, the Australian dollar is testing some big levels around and above 0.77 and looks to have some work to do. There is an RBA policy meeting next Tuesday , market thoughts are turning to the Bank hopping on the 'let's get a touch more hawkish' global central bank bandwagon (RBA monetary policy meeting - what to expect). Iron ore has steadied from its recent plunge, helping the AUD also.

The People's Bank of China set the mid-rate for the CNY (against the USD) much stronger again today, and again refrained from OMOs, in effect draining funds from the banking system.

Regional equities:

  • Nikkei -1.19%
  • Shanghai -0.18%
  • HK -0.87%
  • ASX ... it was the final day of the financial year in Australia today. The New Year's Eve party on the ASX really sucked, down 1.49%

Still to come ... on Sunday!

  • More on this weekend's election in Tokyo
  • Japan politics - heads up for Tokyo election this weekend