- China coronavirus - Shanghai announces plans for further (slow) easing of restrictions
- AUD - today's drop in the unemployment rate is leading media reports
- New Zealand to extend and add to support to counter high inflation hitting cost of living
- Australian April Jobs: Employment +4.0K (vs. +30K expected) & Jobless rate 3.9% (3.9%)
- PBOC sets USD/ CNY reference rate for today at 6.7524 (vs. estimate at 6.7510)
- (Not much) More on the Japanese March machinery order data - strong beat
- More info on the Japan April trade deficit
- Car sales in China up 27% m/m in the first half of May
- Japan trade balance for April Y -839.2bn (vs. expected Y -1150bn)
- Australian election this weekend: Opposition leader will address budget issues immediately
- ICYMI - US Treas Sec Yellen confirms she is pressing Biden for some China tariff cuts
- Two thirds of Japanese firms say the BOJ should end large-scale stimulus by end-March 2023
- NZ PPI for Q1 2022, PPI input and output both surge higher
- Canada says China has lifted its restrictions on Canadian canola (after 3 year ban)
- JPMorgan has cut its US GDP estimates for both 2022 and 2023
- Deutsche Bank says S&P500 to 3650, then as high as 4800 by the end of this year
- TD says the strength of the USD to persist this quarter, and maybe beyond
- Wells Fargo says "a mild recession our base case "
- ICYMI: Goldman Sachs cut its forecast for China economic growth citing zero covid
- Trade ideas thread - Thursday 19 May 2022
- Fed's Harker (more): Economy can withstand tightening
- US stocks close near session lows and have another horrible day to the downside
- Fed's Harker also saying he expects 50bp Federal Reserve rate hikes in June and July
- Forexlive Americas FX news wrap: Merciless selling in risk assets. SNB joins the party
The US dollar gave back a little of its gains it made on Wednesday US time during the session here on Thursday in Asia. EUR, AUD, CAD, NZD, GBP all added on a few ticks against the USD to varying extents. USD/JPY, on the other hand, has moved net higher on the day here after early weakness took it back under 128. USD/JPY is back above 128.60 as I update.
Philadelphia Fed President Harker spoke late in the US afternoon. Harker was in line with his FOMC colleagues, tipping 50bp rate hikes at the June and July meetings and a more ‘measured’ (i.e. 25bp) pace after that as likely.
On the data front we had another trade deficit from Japan (April month) with a record high level of imports (rising commodity prices and a weak yen combining for this result) while exports to China slumped due to covid controls there.
We also had the Australian labour market report. While net jobs added came in as a big miss (+4K vs. +30K expected) there was a notable rotation from part-time jobs (-88K) into full-time jobs (+90K). The big headline, though, was the jobless rate dropping to 3.9%, to its lowest since August of 1974. Participation did drop back, helping the rate down but its an impressive result nonetheless.
In China, Shanghai outlined (slow) steps towards easing. The city has turned the corner it seems.