Menu

Search

  |   Market Roundups

Menu

  |   Market Roundups

Search

Asia Roundup: Aussie rallies on upbeat employment report, kiwi slumps as GDP growth falls short, dollar consolidates amid U.S. political turmoil - Thursday, June 15th, 2017

Market Roundup

  • Australia May employment, +42.0k vs forecast +10.0k, last +46.2k
     
  • Australia May full-time employment, +52.1k, last -5.7k
     
  • Australia May unemployment rate, 5.5% vs forecast 5.7%, last 5.7%
     
  • Australia May part rate, 64.9% vs forecast 64.8%, last 64.8%
     
  • New Zealand Q1 annual GDP y/y, 2.5% vs forecast 2.7%, last 2.7%
     
  • New Zealand Q1 GDP prod q/q, 0.5% vs forecast 0.7%, last 0.4%
     
  • New Zealand Q1 GDP expend q/q, 0.2%, last 0.2%
     
  • OECD warns NZ on low labor prod, endorses debt limits
     
  • PBOC leaves interest rates unchanged for reverse repos
     
  • PBOC keeps rate for 7-day RR at 2.45%, 14-day at 2.60%
     
  • PBOC injects 90 bln yuan into the fin system
     
  • MoF flow data – Japanese buy more foreign bonds Jun 10 wk, net Y526.6 bln
     
  • Foreigners sell net Y143.1 bln Japan stocks, buy JGBs, Y2.77 tln bills

Economic Data Ahead

  • (0245 ET/0645 GMT) France May CPI (EU) Final +0.0% m/m, +0.9% y/y eyed; last +0.1%, +0.9%
     
  • (0330 ET./0730 GMT) Switzerland Q2 3M Target Libor Rate, -0.75% eyed, last -0.75%
     
  • (0400 ET/0800 GMT) Italy May CPI Final, -0.2% m/m, +1.4% y/y eyed; last -0.2%, +1.4%
     
  • (0430 ET/0830 GMT) Great Britain May Retail Sales, -0.8% m/m, +1.7 y/y eyed; last +2.3, +4.0
     
  • (0500 ET/0900 GMT) Eurozone Apr Eurostat trade NSA (EUR), 27.2 bln eyed; last 30.9 bln
     
  • (0700 ET/1100 GMT) Great Britain Jun BOE QE Corp, 10 bln eyed; last 10 bln
     
  • (0700 ET/1100 GMT) Great Britain Jun BOE Bank Rate, +0.25% eyed; last +0.25%

Key Events Ahead

  • N/A SRB's Konig discusses Popular's rescue with EZ finmins
     
  • N/A Basel Committee meets to finalize post-fin crisis bank cap rules
     
  • N/A ECB's Draghi, Coeure participate in Eurogroup meeting
     
  • N/A BOE announces rate decision
     
  • (0330 ET./0730 GMT) Swiss National Bank monetary policy assessment
     
  • (0430 ET/0830 GMT) Spain 5Y, 10Y E1.500 bln auctions
     
  • (0430 ET/0830 GMT) Spain 15Y, 20Y E1.000 bln auctions
     
  • (0450 ET/0850 GMT) France 3Y E2.000 bln auction
     
  • (0450 ET/0850 GMT) France 5Y, 6Y E1.500 bln auctions
     
  • (0450 ET/0850 GMT) France 5Y E3.000 bln auction
     

FX Beat

DXY: The dollar steadied versus its major peers after slumping to multi-week lows on the back of weak U.S. inflation data and deepening political turmoil in Washington. The greenback against a basket of currencies traded flat at 96.94, having touched a low of 96.32 on Wednesday, it’s lowest since Nov 9. FxWirePro's Hourly Dollar Strength Index stood at -74.31 (Bearish) by 0500 GMT.

EUR/USD: The euro slightly edged up as the greenback weakened after weak U.S. inflation data left investors wondering if the Federal Reserve would follow up its latest rate hike with another later this year.  The European currency traded up at 1.1221, having touched a high of 1.1295 the day before, its highest since Nov. 9. FxWirePro's Hourly Euro Strength Index stood at 45.51 (Neutral) by 0400 GMT. Investors’ attention will remain on Eurozone trade balance figures, ahead of the U.S. unemployment benefit claims, import/export prices and industrial production for further clues on the major. Immediate resistance is located at 1.1231 (10-DMA), a break above targets 1.1300. On the downside, support is seen at 1.1185 (June 13 Low), a break below could drag it near 1.1150.

USD/JPY: The dollar steadied after falling to a 2-month low in the previous session on reports that U.S. President Donald Trump is being investigated by special counsel Robert Mueller for possible obstruction of justice. The major traded flat at 109.58, having touched a low of 108.81 on Wednesday, its lowest since Apr. 20. FxWirePro's Hourly Yen Strength Index stood at 17.07 (Neutral) by 0400 GMT. Investors’ will continue to track broad based market sentiment, ahead of the U.S. unemployment benefit claims, import/export prices and industrial production due later in the day. Immediate resistance is located at 110.06 (61.8% retracement of 112.12 and 108.81), a break above targets 110.45 (50.0% retrace). On the downside, support is seen at 109.11 (June 7 Low), a break below could take it near 108.81 (Previous Session Low).

GBP/USD: Sterling consolidated within a narrow range ahead of the Bank of England interest rate decision and minutes release, which is likely to indicate rate hike off the table for now, in the wake of inflation overshooting BoE’s target. A special counsel investigation on Trump's possible obstruction of justice weakened the greenback across the board, which provided some support to the British pound. Sterling traded flat at 1.2746, having hit a low of 1.2635 on Friday, its weakest since Apr 18. FxWirePro's Hourly Sterling Strength Index stood at 45.14 (Neutral) by 0400 GMT. Investors’ focus now shifts on UK retail sales data, ahead of the BoE monetary policy decision scheduled later in the day. Immediate resistance is located at 1.2807 (50.0% retrace of 1.2977 and 1.2365), a break above could take it near 1.2847 (38.2% retrace). On the downside, support is seen at 1.2700, a break below targets 1.2635. Against the euro, the pound traded 0.1 percent down at 88.02 pence, having hit a 7-month low of 88.66 on Monday.

AUD/USD: The Australian dollar rallied to fresh session highs after data showed Australia's employment jumped a seasonally adjusted 42,000 in May, well above the estimate 10,000 job gain, while annual jobs growth accelerated to 2.0 percent. The Aussie trades 0.3 percent up at 0.7611, hovering towards a high of 0.7635 hit on Wednesday, it’s strongest since Apr 3. FxWirePro's Hourly Aussie Strength Index stood at 38.95 (Neutral) by 0500 GMT. Investors will continue to digest upbeat domestic data, ahead of U.S. economic releases. Immediate support is seen at 0.7583 (Session Low), a break below targets 0.7548 (5-DMA). On the upside, resistance is located at 0.7635 (Previous Session High), a break above could take it near 0.7662 (Mar 31 High).

NZD/USD: The New Zealand dollar slumped, after rising to a 4-month high in the previous session after data showed a less-than-expected New Zealand's growth in the first quarter, indicating that the RBNZ could leave the door open for further rate cuts in near-term. The economy grew 0.5 percent in the three months to March, missing forecast of 0.7 percent and on an annual basis, the economy expanded 2.5 percent in the first quarter of 2017 versus forecasts of 2.7 percent. The Kiwi trades 0.6 percent down at 0.7224, having touched a peak of 0.7319 on Wednesday, its strongest level since Feb. 8. FxWirePro's Hourly Kiwi Strength Index was at 18.18 (Neutral) by 0500 GMT. Investors’ will continue to track broad based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.7300, a break above could take it near 0.7350. On the downside, support is seen at 0.7198 (Previous Session Low), a break below could drag it till 0.7171 (June 12 Low).

Equities Recap

Asian shares declined, weakened by soft U.S. economic data and a media report that U.S. President Donald Trump is being investigated by a special counsel for possible obstruction of justice.

MSCI's broadest index of Asia-Pacific shares outside Japan tumbled 0.7 percent.

Tokyo's Nikkei fell 0.3 percent to 19,834.30 points, Australia's S&P/ASX 200 index declined 1.2 percent to 5,764.90 points and South Korea's KOSPI lost 0.6 percent to 2,359.54 points.

Shanghai composite index rose 0.1 percent to 3,133.56 points, while CSI300 index was trading 0.2 percent down at 3,526.50 points.

Hong Kong’s Hang Seng was trading 0.9 percent lower at 25,640.77 points. Taiwan shares added 0.2 percent to 10,088.35 points.

Commodities Recap

Crude oil prices steadied after falling to their lowest levels in seven months on the back of a build in U.S. crude stocks and doubts over OPEC's ability to implement production cuts. International benchmark Brent crude was trading 0.2 percent up at $47.00 per barrel by 0417 GMT, having hit a low of $46.76 on Wednesday, its weakest since May 5. U.S. West Texas Intermediate traded flat at $44.66 a barrel, after falling as low as $44.44 earlier, its lowest since May 5.

Gold edged up, recovering from a near three-week low hit in the previous session, as Asian stocks declined on a report that U.S. President Donald Trump is being investigated for possible obstruction of justice. Spot gold rose 0.4 percent to $1,264.66 per ounce by 0422 GMT, having hit a low of $1,257.06 an ounce, its lowest since May 26. U.S. gold futures for August delivery fell 0.8 percent to $1,265.90 per ounce.

Treasuries Recap

The 10-year U.S Treasury yield stood at 2.139 percent higher by 0.001 bps, while 5-year yield was 0.007 bps up at 1.731 percent.

The Australian bonds rallied amid lingering inflation concerns even after the Federal Reserve raised its benchmark interest rate by 25 basis points to 1.00-1.25 percent, suggesting that weak readings are unlikely to persist in the near-term. The yield on the benchmark 10-year Treasury note slumped 4-1/2 basis points to 2.37 percent, the yield on 15-year note plunged nearly 6 basis points to 2.73 percent while the yield on short-term 5-year traded flat at 1.66 percent.

The New Zealand bonds remained strongly upbeat at the time of closing after investors poured into safe-haven assets on the back of lower-than-expected gross domestic product (GDP) for the first quarter of this year, which overshadowed the interest rate hike by the United States Federal Reserve. At the time of closing, the yield on the benchmark 10-year bond plunged 7-1/2 basis points to 2.74 percent, the yield on 7-year note slumped 6-1/2 basis points to 2.64 percent and the yield on short-term 2-year note also ended 1 basis point lower at 1.95 percent.

The Canadian government bond prices were higher across the yield curve in sympathy with U.S. Treasuries. The two-year rose 4 Canadian cents to yield 0.887 percent and the 10-year climbed 51 Canadian cents to yield 1.505 percent. The gap between the 10-year yield and its U.S. equivalent narrowed by 0.9 of a basis points to a spread of -63.7 basis points, its smallest since Nov. 8, the day of the U.S. election.

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.