Forex news for Asia trading Friday 01 July 2016

  • Saudi energy minister says oil market still has more supply than demand
  • AUD and NZD make a run for it into the weekend
  • "A high chance that the BOJ will ease further at its July meeting"
  • This is what happens if BOJ head Kuroda is feeling a bit under the weather
  • Comments from Japan - BOJ Tankan shows cautious firms, but capex firmer
  • Nikkei / Markit Japan manufacturing PMI for June (final): 48.1 (prelim was 47.8)
  • China - Caixin Manufacturing PMI: 48.6 (expected 49.2, prior 49.2)
  • Gold gaining
  • PBOC sets USD/CNY mid-point today at 6.6496 (vs. yesterday at 6.6312)
  • China's fin min comments on local government debt
  • China official manufacturing PMI for June: 50.0 (expected 50.0)
  • China Official June PMIs due at the top of the hour
  • Happy (no recession) birthday Australia today! 25 years.
  • Australia election this weekend - here's the risk
  • "You've called the BOJ! Your call is important to us ...."
  • BOJ Q2 Tankan: Large Manufacturing Index: 6 (4 expected)
  • Japan May CPI: -0.4 % y/y (expected -0.5%)
  • Japan May data: Household spending, Jobless rate, Job-to-applicant ratio
  • Australia data: Manufacturing PMI for June : 51.8
  • Where's the craic? Fidelity plans to move 100 jobs from Britain to Dublin
  • Japan's GPIF records big loss
  • Trade ideas thread - Friday 1 July 2016
  • How to trade a medium-term AUD/USD correction - Credit Agricole
  • Daily Mail backs Theresa May as Conservative leader
  • USD/JPY jumps to another post-Brexit high
  • The final tally on FX performance for June

A skittish market today, with a decent size fall for USD/JPY and rallies for gold, silver, AUD and NZD.

USD/JPY popped above 103.30 in early Asia but didn't sustain there. As the Tokyo morning got underway USD/JPY steadily dripped lower, back under 103 again and down near 102.80 as I update. We got plenty of data from Japan today, a disappointing CPI (as usual), falling household spending (as usual) and a lacklustre Q2 Tankan report from the Bank of Japan.

Speaking of data, we got official PMIs from China today for June (manufacturing and non-manufacturing) as well as the private manufacturing PMI. Services PMI held up well, but both of the manufacturing PMIs were disappointing again.

Back to the currencies; AUD/USD and NZD/USD both popped to new highs compared with their overnight heights, but both have since dipped back (just a little) from resistance. There is an Aussie national election this weekend (here is the risk).

Gold and silver gained in price.

EUR/USD and USD/CHF are both little changed on the session, while Cable has edged small higher but with a significantly smaller range than it had last Friday at this time :-D .

Regional equities:

  • Nikkei +0.77%
  • Shanghai +0.19%
  • HK +1.75%
  • ASX +0.49%

Still to come: Australian election this weekend - here's the risk