ForexLive Asia FX news wrap: NZD higher on stunning jobs report
Forex news for Asia trading on Wednesday 4 August 2021
- Japan senior health official is considering a nationwide state of emergency
- Bank of England meeting Thursday 5 August 2021 - quick preview comments
- China - Caixin service PMI for July 54.9 (expected 50.6, prior 50.3)
- Australia Retail Sales for June -1.8% m/m, same as the flash reading (prior +0.4%)
- PBOC sets USD/ CNY mid-point today at 6.4655 (vs. yesterday at 6.4610)
- Australia coronavirus - State of NSW (Sydney capital city) reports 233 new cases
- New Zealand - ANZ Commodity Price index for July: -1.4% m/m (prior +0.8%)
- Japan July PMIs - Jibun Bank/Markit Services 47.4 (prior 48.0) & Composite 48.8 (prior 48.9)
- Coronavirus - Australian state of Queensland reports another 16 new cases today
- Outlook for an RBNZ rate hike on August 18 - most analysts saying its a done deal
- ICYMI - US SEC head says crypto needs more regulation
- Australia - Markit Services PMI for July (final) 44.2 (prior 56.8)
- NZ Q2 Unemployment rate 4.0% (vs. expected 4.5%) & Employment change +1.0% q/q (vs. expected +0.7%)
- Australia Construction PMI for July: 48.7 (prior 55.5)
- Australia coronavirus - reports another entire apartment block in Sydney locked down
- US naval vessel sent to monitor the situation with Asphalt Princess
- More on Fed's Waller's tilt to less dovish - listen out for Clarida following suit
- Trade ideas thread - Wednesday 4 August 2021
- Private oil survey data shows smaller than expected headline draw in crude oil inventory
The New Zealand dollar was a mover higher on the session, prompted by a huge drop in the unemployment rate shown in the latest employment report (see bullets above). All four of New Zealand's biggest banks are now forecasting a 25bp rate hike from the Reserve Bank of New Zealand in each of August, October and November. These would take the cash rate to 1%.
NZD/USD is above 0.7050 as I update, the best of the majors here today.
Elsewhere across major FX the moves have been smaller, with the USD a little lower in general. USD/JPY is an exception, its a few points up on its circa 108.95 low.
Regional equities have not followed the higher moves on Wall Street with much gusto; China, HK and Australia are all up while the Nikkei225 in Japan is down.
Oil is not a lot changed from late US trade levels while gold is up a couple of dollars. Bitcoin trades just above $38K.
On the coronavirus news front the outbreaks in Australia are holding around their recent high daily new case counts. Japanese authorities are considering widening states of emergency nationwide to address the ongoing spread in the country.
Coming up is a Fed speaker worth paying attention to, here's why:
Clarida is speaking from 10am NY time Wednesday, which is 1400GMT.NZD/JPY higher on the session: