6 Aug 2015
Aussie ignores jobs data, ‘Super Thursday’ – In Spotlight
FXStreet (Mumbai) - Among the Asian currencies, Aussie extends losses for the second straight losses as the bulls remained unimpressed by above estimates Australia’s jobs data while the Kiwi was firmer above 0.6500 levels, rebounding from fresh multi-year lows. USD/JPY continues to trade around a flat line near 124.75, having faced rejection at 125 handle.
Key headlines in Asia
Australian jobs: July beats estimates yet again
AUD/NZD rallied big through 1.13 after jobs but met supply
Dominating themes in Asia - centered on JPY, AUD, NZD
There was nothing much to report in Asia, except the Australian jobs data which outpaced estimates. However, the AUD bulls were little affected by the data as the Aussie resumed its corrective slide after reaching fresh 2-week highs above 0.7400 on Tuesday.
The Kiwi, on the other hand ditched its OZ counterpart and climbed higher above 0.65 barrier as traders resorted to profit-taking after the NZD fell to fresh six-year lows on Wednesday as downbeat NZ employment data and stronger greenback continued to weigh.
The dollar-yen pair consolidated previous heavy gains and stayed below 125 barrier as the USD bulls are seen bidding up for a decisive break beyond the last, heading towards fresh yearly highs ahead of Friday’s Bank of Japan (BOJ) monetary policy decision and US payrolls data.
Asian markets are mostly trading mixed with Nikkei in Tokyo outperforming up 0.68% to trade at 20754. While Chinese markets kept the red, SSEC -0.33%. The Australian benchmark S&P/ASX 200 is the biggest loser so far, down -1.26% at 5602. While South Korea’s Kospi fell further into losses to trade at 2013, -0.75%.
Heading into Europe - centered on EUR, GBP
An eventful European session awaits EUR,GBP traders with Bank of England’s (BOE) the first ever joint-release of rate announcement, MPC minutes, and the Inflation Report to remain the main highlight.
On the data space, German factory orders and manufacturing and industrial production data from the UK will also be closely watched.
Germany will report the state of its June factory orders, with 0.1% gain expected in June, and a 4.9% growth annually. The country reported a 0.2% decline in orders in May m/m, while it saw 4.7% growth on an annual basis.
UK industrial production results in June are seen declining to 0.1% on a monthly basis after the 0.4% gain reported in May, and adding 2.2% on an annual basis compared to the 2.1% growth reported a month ago.
GBP – ‘Super Thursday’
The BoE will announce the Monetary Policy Committee’s August rate decision, together with minutes of the meeting and quarterly economic forecasts for the first time ever.
The nine-strong rate-setting committee is expected to keep monetary policy stance unchanged in August, but economists expect a rift around the outlook for inflation. Even though the UK economy picked up pace notably in the second quarter, the overall macro environment in which the BOE is about to publish its new forecasts, and decide on the path of monetary policy, has become more complicated and complex.
Global oil prices continue to hover within a bearish zone and close to this year's lows, while sterling remains on a strong footing, rising some 10.3% since the start of the year against the euro zone currency – the UK's largest trading partner.
Both of these factors are expected to continue exerting significant downward pressure on the CPI inflation outlook. The August Inflation Report forecast should shed more light on how much it affects their medium-term outlook for inflation.
Looking ahead
Moving on, today’s the North American session remains fairly data-light with only the US weekly unemployment claims to be reported, after an action-packed last session.
Key headlines in Asia
Australian jobs: July beats estimates yet again
AUD/NZD rallied big through 1.13 after jobs but met supply
Dominating themes in Asia - centered on JPY, AUD, NZD
There was nothing much to report in Asia, except the Australian jobs data which outpaced estimates. However, the AUD bulls were little affected by the data as the Aussie resumed its corrective slide after reaching fresh 2-week highs above 0.7400 on Tuesday.
The Kiwi, on the other hand ditched its OZ counterpart and climbed higher above 0.65 barrier as traders resorted to profit-taking after the NZD fell to fresh six-year lows on Wednesday as downbeat NZ employment data and stronger greenback continued to weigh.
The dollar-yen pair consolidated previous heavy gains and stayed below 125 barrier as the USD bulls are seen bidding up for a decisive break beyond the last, heading towards fresh yearly highs ahead of Friday’s Bank of Japan (BOJ) monetary policy decision and US payrolls data.
Asian markets are mostly trading mixed with Nikkei in Tokyo outperforming up 0.68% to trade at 20754. While Chinese markets kept the red, SSEC -0.33%. The Australian benchmark S&P/ASX 200 is the biggest loser so far, down -1.26% at 5602. While South Korea’s Kospi fell further into losses to trade at 2013, -0.75%.
Heading into Europe - centered on EUR, GBP
An eventful European session awaits EUR,GBP traders with Bank of England’s (BOE) the first ever joint-release of rate announcement, MPC minutes, and the Inflation Report to remain the main highlight.
On the data space, German factory orders and manufacturing and industrial production data from the UK will also be closely watched.
Germany will report the state of its June factory orders, with 0.1% gain expected in June, and a 4.9% growth annually. The country reported a 0.2% decline in orders in May m/m, while it saw 4.7% growth on an annual basis.
UK industrial production results in June are seen declining to 0.1% on a monthly basis after the 0.4% gain reported in May, and adding 2.2% on an annual basis compared to the 2.1% growth reported a month ago.
GBP – ‘Super Thursday’
The BoE will announce the Monetary Policy Committee’s August rate decision, together with minutes of the meeting and quarterly economic forecasts for the first time ever.
The nine-strong rate-setting committee is expected to keep monetary policy stance unchanged in August, but economists expect a rift around the outlook for inflation. Even though the UK economy picked up pace notably in the second quarter, the overall macro environment in which the BOE is about to publish its new forecasts, and decide on the path of monetary policy, has become more complicated and complex.
Global oil prices continue to hover within a bearish zone and close to this year's lows, while sterling remains on a strong footing, rising some 10.3% since the start of the year against the euro zone currency – the UK's largest trading partner.
Both of these factors are expected to continue exerting significant downward pressure on the CPI inflation outlook. The August Inflation Report forecast should shed more light on how much it affects their medium-term outlook for inflation.
Looking ahead
Moving on, today’s the North American session remains fairly data-light with only the US weekly unemployment claims to be reported, after an action-packed last session.