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Traders took a chill pill from yesterday’s moves, as a lack of fresh catalysts inspired some investors to buy the dip on several assets.

  • NZ Westpac consumer sentiment down from 111.2 to 108.6 in June
  • NZ current account prints 0.18B NZD surplus vs. 0.05B expected, 2.75B deficit in Q4 2017
  • AU MI leading index slips by 0.2% vs. 0.2% gain in April
  • BOJ removes timeframe for inflation target

Major Events/Reports:

Bithumb exchange heist

Earlier today South Korean cryptocurrency exchange Bithumb shared that a total of 35B KRW ($31.5M) worth of virtual coins were stolen from its coffers “between late yesterday and early morning today.”

The sixth-largest exchange (according to CoinMarketCap.com) stopped all trading and assured that it would fully compensate its customers.

Bitcoin fell to around $6,600 after the event, as the hack highlighted security risks as well as weak regulation for the industry.

BOJ removes timeframe for 2.0% inflation target

It’s official! In its April meeting minutes, Bank of Japan (BOJ) members have decided to ditch a public timeframe for their 2.0% inflation target. If you recall, January’s outlook report contained the phrase:

“The timing of the year-on-year rate of change in the CPI reaching around 2 percent will likely be around fiscal 2019.”

Well, it looks like BOJ members don’t like it that their “projection” was being taken as “deadline.” See, “some members” believe that (emphasis mine):

“…attracting excessive attention merely to forecast figures would not be appropriate from the perspective of communication with the markets, as there were various uncertainties regarding the outlook for prices, including the possibility that it might take a fair amount of time before actual inflation started to affect inflation expectations.

One member balked at nixing the projection, saying that removing the “deadline” could weaken the BOJ’s commitment to its targets. Other members weren’t too worried; however, as they said the bank’s stance on achieving 2.0% inflation ASAP would remain unchanged.

Improvement in risk sentiment

It looks like the Asian bourses took a chill pill from yesterday’s losses. If you recall, Trump calling for an additional 10% tariff on $100B worth of Chinese goods had put them in a sour mood yesterday.

While the trade war jitters haven’t completely gone away, some investors have taken advantage of the strong move by buying the dip. Heck, Australia’s index even received an extra boost from the Aussie’s recent sharp losses!

For now, it’s only firms that directly rely on China’s demand and products that are receiving the heaviest hits.

  • Nikkei is up by 0.29% to 22,343.7
  • ASX 200 is up by 0.10% to 6,146.2
  • Hang Seng is up by 0.41% to 29588.4
  • Shanghai index is down by 0.59% to 2,890.663

Safe haven gold slipped a bit as risk sentiment recovered, while crude oil prices were propped higher by lower U.S. crude inventories and a collapse of a 400,000-barrel storage tank in Libya.

  • Gold is down by 0.05% to $1,273.90
  • Brent crude oil is up by 0.29% to $75.27
  • U.S. WTI is up by 0.14% to $65.12

Major Market Mover(s):

Comdolls

Thanks to a lack of fresh catalysts, the Aussie and Kiwi retraced a chunk of their losses from the previous sessions. The Loonie even found extra support from rising oil prices.

AUD/USD is up by 13 pips (+0.17%) to .7392; AUD/JPY is up by 20 pips (+0.24%) to 81.40; AUD/CHF is up by 21 pips (+0.28%) to .7358; EUR/AUD is down by 35 pips (-0.22%) to 1.5657, and GBP/AUD is down by 40 pips (-0.23%) to 1.7802

NZD/JPY is up by 16 pips (+0.20%) to 76.05; NZD/CHF is up by 17 pips (+0.25%) to .6874, and NZD/CAD is up by 12 pips (+0.12 pips (+0.13%) to .9175

CAD/CHF is up by 10 pips (+0.13%) to .7492; EUR/CAD is down by 16 pips (-0.11%) to 1.5377, and GBP/CAD is down by 18 pips (-0.10%) to 1.7483.

Watch Out For:

  • 6:00 am GMT: Germany’s PPI (0.4% expected, 0.5% previous)
  • 10:00 am GMT: U.K. CBI industrial order expectations (1 expected, -3 previous)