- BoK Governor Rhee says it is desirable to raise rates by 25bp instead of 50bp
- Banks in China are facing up to US$350 bn in losses from property crisis
- Goldman Sachs forecast recession chance in Australia in the next 12 months as high as 50%
- China Markit Manufacturing PMI 50.4 (expected 51.5)
- Australian ANZ Job Advertisements for July -1.1% m/m (prior 0.4%)
- USD/JPY has been losing ground Monday in Asia trade, plunging towards 132.00
- PBOC sets USD/ CNY reference rate for today at 6.7467(vs. estimate at 6.7467)
- Australia July inflation 1.2% m/m (prior 0.3%)
- Fitch forecasting China will outlay more financial support, up infrastructure investment
- Sales at China's top 100 property developers fell 40% in July
- Japan Jibun Markit final manufacturing PMI July 52.1 (prior 52.7)
- ICYMI - Fitch says China's vehicle market has stage a V-shaped rebound
- South Korea July trade figures - trade up y/y
- Australian authority urges the government to consider curbing gas exports due to shortage
- Australian S&P Global Manufacturing PMI for July, final: 55.7 (prior 56.2)
- New Zealand data - June building permits -2.3% m/m (prior -0.5%)
- Bitcoin update - lower after a relatively steady weekend. On approach to $23200.
- Australian July Manufacturing PMI drops to 52.5 (from June's 54.0)
- Weekend Iran tweets - want to get to a nuke deal with the US and world
- Weekend - Putin says navy to have hypersonic Zircon cruise missiles in the next few months
- NATO says it is prepared to intervene in Kosovo tensions
- Heads up for partial Australian market holiday today
- Russian state-owned Gazprom said on Saturday it had stopped supplying gas to Latvia
- China threats intensify. Will they really assassinate Nancy Pelosi?
- Uber Fed dove Kashkari sounds hawkish - We are a long way away from achieving 2% inflation
- OPEC says doesn't control oil prices. Lack of investment in sector is a big factor.
- Monday morning open levels - indicative forex prices - 01 August 2022
Weekend:
- Kashkari: Whether we are technically in a recession or not doesn’t change my analysis
- Ethereum technical analysis
- China official July Manufacturing PMI falls from June, and back into contraction. Again.
- Presiden Biden tests positive for covid again
- Week Ahead: Highlights include US jobs, ISM; China Caixin PMIs; BoE, RBA, OPEC
USD/JPY sharply declined, dropping 150 or points from the day’s highs above 133.50 to just shy of 132.00. There was no obvious catalyst to trigger the selling, it continued the fall it began after last week’s FOMC statement and Chair Powell’s press conference.
It was a busy weekend and day for data releases. Most notably the official China manufacturing PMI for July dropped back into contraction. The other China PMI, from Markit/Caixin, held just above the 50 dividing line, at 50.4. Its not new news that China’s economy is suffering from ongoing recurring COVID-related restrictions but the drop of the PMI back into contraction was a shock/surprise.
On the central bank front, weekend comments from Federal Reserve uber-dove Kashkari were notably hawkish. He dismissed concerns over the economy dropping into recession, saying that while the Fed is not happy if that happens it will nevertheless hike rates as necessary to drive inflation back to target.
Apart from USD/JPY other major FX rates moved in only minor sorts of ranges. EUR, GBP, AUD and NZD are all just a touch better bid against the USD.
