- Heads up for Chinese PMI data due over the weekend
- Gold up - lower USD and bond yields saw investor demand
- Japan to tap 257bn yen in budget reserves to combat rising oil, other prices
- Australian data - June Private sector credit +0.9% m/m (vs. expected 0.8%)
- Australia data - Q2 PPI +1.4% q/q (vs. expected 0.8%)
- China’s Politburo all but acknowledged its given up on hitting the growth target this year
- PBOC sets USD/ CNY reference rate for today at 6.7437 (vs. estimate at 6.7414)
- Elon Musk says that more Tesla commodity prices are trending down than up
- JP Morgan is watching US jobs market as a sign the economy is entering a recession
- Reserve Bank of Australia expected to hike cash rate by 50bp next week, again in September
- Japan will allow local authorities to invoke countermeasures against spread of COVID
- Japan data: June Industrial output and retail sales both rise m/m
- BOJ July summary: appropriate for the Bank to continue with the current monetary easing
- Tokyo July inflation data: Headline CPI 2.5% (prior 2.3%)
- IMF downgrades its 2022, 2023 economic forecasts for Australia
- South Korea June industrial output up, services output down
- Closure of Chinese international air traffic from Beijing's stringent zero-COVID strategy
- New Zealand consumer confidence inches higher, still in the doldrums
- Morgan Stanley targetting EUR/USD towards 0.9760
- US admin officals are scrambling to say "its not a recession!!!"
- Trade ideas thread - Friday, 29 July 2022
- US stocks close higher with the S&P index leading the way
- Intel misses on top and bottom line. Earnings-per-share $0.29 vs. expected $0.70
- Amazon EPS $-0.20 vs. expectations of $0.13 gain
USD/JPY was once again a mover during the session but this time it was to and fro range trading and ending net little changed. We had plenty of data from Japan during the session (Tokyo CPI, industrial output and more – see bullets above) but the yen is being moved with US-Japan yield differential changes, not local data. Like I said, net change on the session is small.
Elsewhere the ranges were limited and net directional change small and mixed.
News flow was light. As an aside, Elon Musk was on Twitter with some useful info – he tweeted that the price of commodities used by TSLA are more trending down than up.
On the central bank front, we had the Bank of Japan July meeting ‘Summary’ published. There was nothing in these departing from what we have heard over and over from the Bank – policy is seen as staying loose.
You’ll see in the (bullets) posts above that there is PMI data due from China over the weekend. Any surprises on these could be of impact on China-proxy trades on Monday morning (for the AUD, as an example). Join us early Monday if so!
