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It was a typical NFP Friday for Asian session players, as they take a chill pill despite the U.S. officially imposing additional tariffs on China’s goods.

  • AU AIG construction index slips from 54.0 to 50.6 in June
  • Japan’s household spending (y/y) down by 3.9% vs. 1.3% decline in April
  • Japan’s average cash earnings (y/y) up by 2.1% vs. 0.9% expected, 0.6% previous
  • China’s state-run daily paper: Trump admin behaving like a “gang of hoodlums”

Major Events/Reports:

Wait and see mode on tariff drama

At 4:00 AM GMT today the U.S. officially imposed an additional 25% tax on $34B worth of goods from China.

While the headline heated up trade war jitters that everyone and his momma had talked about, a lot more traders – likely those who had already priced it in – had also chosen to wait for the actual impact of those tariffs before doubling up on their bearish bets.

Beijing wasn’t a fan of the move, though. A statement from China’s Commerce Ministry talked about the decision igniting “the largest trade war in economic history,” adding that “such tariffs are typical trade bullying.”

All eyes will be on when China will make good on its promise to impose retaliatory tariffs on Uncle Sam’s goods.

NFP Friday trading

Those who are over the tariff drama chose to price in a bit of risk appetite. The Asian bourses, for example, found support from old speculations that the U.S. will work with the euro zone to find better auto-related deals.

  • Nikkei is up by 0.55% to 21,664.5
  • A SX 200 is up by 0.24% to 6,268.2
  • Hang Seng is down by 0.48% 28,046.9
  • Shanghai index is down by 0.34% to 2,724.701

Commodity prices weren’t as blasé about the “official” trade war kickoff. Crude oil, for example, could suffer if China chooses to include additional duties on U.S. crude exports.

  • Gold is down by 0.27% to $1,254.16
  • Brent crude oil is down by 0.54% to $77.11
  • U.S. WTI is down by 0.49% to $72.77

Major Market Mover(s):

NZD

Other major currencies were in tight ranges ahead of the NFP reports, but Kiwi bulls were in the mood to extend gains from the previous session.

AUD/NZD is down by 18 pips (-0.17%) to 1.0862
NZD/JPY is down by 12 pips (-0.16%) to 75.16
NZD/CAD is up by 23 pips (+0.25%) to .8932
NZD/CHF is up by 16 pips (+0.24%) to .6752

Watch Out For:

  • 7:00 am GMT: Germany’s industrial production (0.3% expected, -1.0% previous)
  • 7:45 am GMT: France’s trade balance (-5.1B EUR expected, -5.0B EUR previous)
  • 8:00 am GMT: Switzerland’s foreign currency reserves
  • 8:30 am GMT: U.K.’s Halifax house price index (0.3% expected, 1.5% previous)
  • 9:00 am GMT: Italy’s retail sales (0.4% expected, -0.7% previous)
  • NFP report on tap. Read Forex Gump’s latest trading guide!