- Federal Reserve Bank of Chicago President Austan Goolsbee is speaking Monday 31 July 2023
- Bank of Japan Governor Ueda appoints new head to monetary policy development department
- AUD has popped a little on the marginal improvement for China's manufacturing PMI
- Australian data - June Private Sector Credit +0.2% m/m (expected 0.4%, prior 0.4%)
- China official July Manufacturing PMI 49.3 (vs. expected 49.2) & Services 51.5
- PBOC sets USD/ CNY reference rate for today at 7.1305 (vs. estimate at 7.1524)
- The Bank of Japan announces an unscheduled JGB buying operation
- Australian private inflation gauge for July 0.8% m/m (prior 0.1%)
- New Zealand July Business Confidence -13.1% (prior -18%)
- UBS on Bank of Japan Yield Curve Control - ceiling seems to be 1%
- Japan Industrial Production (June, preliminary) +2.0% m/m (vs. expected +2.4%)
- Japan Retail Sales (June) +5.9% y/y (vs. expected +5.9%)
- Goldman Sachs reaffirm their Brent $86 forecast (Dec), cite demand return, growth optimism
- Chinese Communist Party media outlet warns Australia on 'too high' costs of ties with US
- Fed's Kashkari: "If we need to hike- raise rates further from here, we will" - full text
- JPMorgan says they are remaining bearish on the Japanese yen after the BOJ last week
- ICYMI: ECB's Nagel says eurozone core inflation is stubborn, need interest rates kept high
- China to announce more stimulus measures on Monday, Beijing time
- US trucking firm 'Yellow' shut down Sunday. 30,000 jobs at risk.
- Saudi Arabia to host Ukraine peace talks on August 5 and 6. Putin says he is open to talks
- ECB's Lagarde says is wary of a wage-price spiral - "following that very closely"
- Fed's Kashkari- September Federal Open Market Committee (FOMC) rate rise is data dependent
- Trade ideas thread - Monday, 31 July 2023
- Monday morning open levels - indicative forex prices - 31 July 2023
- Newsquawk Week Ahead: Highlights include US jobs report, BoE, RBA and PMI data
- Weekly Market Outlook (31-04 August)
- These videos will kickstart your trading week in the forex market
- Forexlive Americas FX news wrap: USD/JPY breaks 141 as yen shorts buy the dip
Yields on Japanese Government Bonds rose, prompting the Bank of Japan to announce an unscheduled bond-buying operation during the session. The yen weakened on the session and weakened further on this news. USD/JPY is above 14.70 as I update after another strong upmove.
The Bank of Japan move was not the only impactful development during the day. Early news was that China is set to announce further stimulus measures, at a 3pm (Beijing time) news conference. This is 7am GMT and 3am US Eastern time. See bullets above for more on this. As I post there has been news of a Chinese State Council document outlining measures including:
- Expand consumption in NEVs
- No more car purchasing restrictions policies
- Support rigid housing demand
- Support residential districts renewing
- Stimulate smart home appliances and electronics
Once again this is underwhelming stuff.
From Australia today we had softening credit date. The headline gain of +0.2% m/m and 5.5% y/y for total private credit in June is the slowest pace of annual growth in 20 months.
The data focus, however, was on Chinese official PMIs for June (these are the PMIs from the National Bureau of Statistics (NBS)). The manufacturing PMI improved a touch from June but remained in contraction for its fourth consecutive month. The non-manufacturing PMI dipped but remained in expansion.
Asian equity markets:
Japan’s Nikkei 225 +1.5%
China’s Shanghai Composite +0.5%
Hong Kong’s Hang Seng +1.5%
South Korea’s KOSPI +0.9%
Australia’s S&P/ASX 200 +0.1%
