No fresh catalysts? No problem! Risk-takers came out to play, boosting AUD and NZD as well as the Asian bourses in the last couple of hours.
- Japan’s national core CPI (y/y) remains at 0.7% as expected in May
- Japan’s flash manufacturing PMI improves from 52.8 to 53.1 vs. 52.6 expected
- Japan’s all industries activity jumps by 1.0% vs. 0.9% expected, 0.0% previous
- NZ credit card spending (y/y) slows down from 6.9% to 3.7% in May
Trump team restarting trade talks with China?
Earlier today Bloomberg cited “three people familiar with the plans,” saying that some White House officials are trying to restart talks with China to avoid an all-out trade war.
Apparently, some people from the National Economic Council (NEC) have been talking to former U.S. officials and China experts to see how they can engage in high-level talks before the tariff deadline. They might have even explored talking with Chinese Vice President Wang Qishan to get a deal.
Though it’s unlikely to reach major deals in a few weeks, the effort was appreciated by some risk-takers.
Whether it’s profit-taking from this week’s strong moves, easing trade war fears, or weak U.S. data from the previous session (which points to a slower rate hike by the Fed), risk-takers came out to play during the Asian session.
- Nikkei is down by 1.11% to 22,440.0
- A SX 200 is up by 0.19% to 6,219.2
- Shanghai index is up by 0.35% to 2,885.969
- Hang Seng is down by 0.27% to 29,217.3
Even commodity prices edged higher despite a lack of fresh catalysts.
- Gold is up by 0.07% to $1,268.00
- Brent crude oil is up by 0.75% to $73.94
- U.S. WTI is up by 0.94% to $66.39
Major Market Mover(s):
NZD and AUD
The Kiwi received the most support from dollar weakness and news that the U.S. is making effort to talk trade again with China. Fellow high-yielding Aussie also got some boost.
NZD/JPY is up by 36 pips (+0.48%) to 75.82; NZD/USD is up by 31 pips (+0.45%) to .6895; NZD/CHF is up by 26 pips (+0.38%) to .6832 and NZD/CAD is up by 32 pips (+0.35%) to .9169.
AUD/USD is up by 20 pips (+0.27%) to .7395; AUD/JPY is up by 20 pips (+0.24%) to 81.32; AUD/CAD is up by 17 pips (+0.17%) to .9833, and EUR/AUD down by 18 pips (-0.11%) to 1.5704.
Jitters ahead of today’s OPEC meetings kept Loonie bulls in the sidelines even as crude oil prices ticked higher.
USD/CAD is up by 14 pips (+0.10%) to 1.3298; CAD/JPY is up by 10 pips (+0.12%) to 82.70, and GBP/CAD is up by 24 pips (+0.13%) to 1.7639.
Watch Out For:
- 7:00 am GMT: France’s flash manufacturing PMI (54.0 expected, 54.4 previous)
- 7:00 am GMT: France’s flash services PMI to remain at 54.3?
- 7:30 am GMT: Germany’s flash manufacturing PMI (56.3 expected, 56.9 previous
- 7:30 am GMT: Germany’s flash services PMI (52.2 expected, 52.1 previous)
- 8:00 am GMT: Euro Zone’s flash manufacturing PMI (55.0 expected, 55.5 previous)
- 8:00 am GMT: Euro Zone’s flash services PMI (53.7 expected, 53.8 previous)
- OPEC meetings in Vienna starts