Asian shares rise, dollar stands tall after upbeat U.S. jobs report

Asian Shares Mixed After Weak China Data

Asian Shares Mixed After Weak China Data

Asian shares rise, dollar stands tall after upbeat U.S. jobs report

BUZ INVESTORS  Weak China Data Asian stocks were trading mixed on Monday, with some disappointing data from China, fears of protectionist policies, geopolitical worries and an unprecedented global wave of cyberattacks that struck targets in nearly a hundred countries since Friday keeping investors cautious.

North Korea successfully conducted a newly developed mid-to-long range missile test over the weekend, adding to tensions in Korean peninsula.

A G7 communique issued on Saturday said the group would use all policy tools – fiscal, structural and monetary – to boost economic growth. Several officials raised concerns about risks to global growth from the Trump administration’s stance on trade and tax policy.

More ransomware cases may come to light on Monday, possibly on “a significant scale”, a security researcher has warned after cyber worm affected 2 lakh victims in 150 countries last week.

China’s Shanghai Composite index was gaining 0.3 percent and Hong’s Kong’s Hang Seng index was rising half a percent even as official data showed Chinese industrial output and retail sales rose less than expected in April, adding to concerns over the strength of the world’s second-largest economy.

Japan’s Nikkei index was declining 0.2 percent, with exporters drifting lower, as the yen strengthened against the dollar following the widespread cyber attack and in the wake of weaker-than-expected data from the United States.

Australian shares were marginally lower as Chinese factory output data missed expectations. While banks recovered some lost ground, energy and mining stocks were trading weaker.




 Weak China Data


South Korea’s Kospi was moving up 0.3 percent after the country elected a president who vowed to engage with Kim Jong Un’s regime. New Zealand’s NZX-50 index was losing 0.2 percent.Fairfax Media soared as much as 6.5 percent after U.S. buyout firm TPG Capital Management raised its cash bid for the media firm.

U.S. stocks ended narrowly mixed on Friday, Treasury yields slipped and the dollar retreated as investors digested weak retail sales and inflation data as well as disappointing earnings updates from the likes of Nordstrom and J.C. Penney. A gauge of U.S. consumer sentiment unexpectedly increased in May, offering some respite.

European markets clung to slight gains on Friday, as solid GDP data from Germany and some fresh M&A activity helped investors shrug off tepid corporate earnings and sluggish Eurozone industrial production data.

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AUDUSD flirting with 2-month lows

AUDUSD what will the Asian session bring for AUD traders

Chart | Calendar   | TRADE NOW | AUDUSD

AUDUSD what will the Asian session bring for AUD traders

AUDUSD

BUZ INVESTORS  AUD traders  The pair is trading at 0.7366 at 09:40 GMT this morning, with the Australian Dollar trading 0.27% higher against US Dollar from the New York close. Earlier in the session, in China, Australia’s largest trading partner, the consumer price index (CPI) advanced more-than-expected on an annual basis in April. This morning, the pair traded at a high of 0.7374 and a low of 0.7335. The Australian Dollar traded 0.07% higher against the US Dollar in the New York session yesterday, with the pair closing the session at 0.7346. The pair is expected to its find support at 0.7339 and its first resistance at 0.7384.

Currently, AUD/USD is trading at 0.7345, up 0.02% on the day, having posted a daily high at 0.7348 and low at 0.7339.

The AUD/USD has been out of favour with markets of late with a combination of disappointing key economic data and commodity prices while the dollar marches on. AUD/USD’s  minor corrections have been faded in a phase of consolidation and the US shift saw at fresh 4-month  at 0.7328 overnight.

Traders continued to sell the Aussie after yesterday’s  Retail Sales data for March when sales fell by 0.1% in March vs expectations of a 0.3% advance. For today, we have Chinese inflation data as the next major catalyst.




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Australian Dollar| Data | Chart | Calendar | Forecast | News

The AUDUSD increased 0.0042 or 0.57% to 0.7386 on Wednesday May 10 from 0.7344 in the previous trading session. Historically, the Australian Dollar reached an all time high of 1.10 in July of 2011 and a record low of 0.48 in April of 2001.

Australia Markets Last Previous Highest Lowest Unit
Currency 0.74 0.73 1.10 0.48 [+]
Stock Market 5875.40 5839.90 6828.70 1358.50 points [+]
Government Bond 10Y 2.66 2.66 16.50 1.83 percent [+]
2 Year Note Yield 1.73 1.75 5.26 1.43 percent [+]
5 Year Note Yield 2.21 2.22 5.50 1.48 percent [+]

 

Australian Dollar

The AUDUSD spot exchange rate specifies how much one currency, the AUD, is currently worth in terms of the other, the USD. While the AUDUSD spot exchange rate is quoted and exchanged in the same day, the AUDUSD forward rate is quoted today but for delivery and payment on a specific future date. This page provides – Australian Dollar – actual values, historical data, forecast, chart, statistics, economic calendar and news. Australian Dollar – actual data, historical chart and calendar of releases – was last updated on May of 2017.

 

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Buz Investors ASIAN SESSION The dollar remains relatively strong, posting gains against most major counterparts with the exception of the euro which was helped in the aftermath of yesterday’s ECB meeting and subsequent press conference

ASIAN SESSION – GOLD EXTENDS LOSSES; ALL EYES ON US JOBS REPORT

 

ASIAN SESSION – GOLD EXTENDS LOSSES; ALL EYES ON US JOBS REPORT

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Buz Investors ASIAN SESSION The dollar remains relatively strong, posting gains against most major counterparts with the exception of the euro which was helped in the aftermath of yesterday’s ECB meeting and subsequent press conference by its President, Mario Draghi. As a result of dollar strength, gold was pushed below $1200 an ounce.

The European Central Bank signaled yesterday it currently does not plan to take further accommodative measures to boost the Eurozone economy as there are positive signs on the horizon. This helped a euro that was already strong due to favorable developments on the political front; namely Emmanuel Macron gaining in the polls against anti-EU rival Marine Le Pen.



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ASIAN SESSION

The dollar continued to post losses against the euro during today’s Asian trading, though more moderate ones relative to yesterday’s European session trading. Euro / dollar was eyeing the 1.06 level in late Asian session. Relative to the yen, the greenback advanced yet again, this time surpassing the 115 yen level and setting a new seven-week high.

Investments out of Japan and into the US currency are partly coming on the back of rising US Treasury rates. Treasury yields extended their run with the 10-year note rate advancing for a tenth day to climb above the 2.6% mark, posting its longest streak since 1974.

Gold is extending its losses for a fifth straight day to record its longest losing run since October last year. The precious metal has been losing its attractiveness on improving expectations about the US economy, which are leading to a stronger dollar. Today it slid below the $1200 an ounce psychological level to reach a low of $1196.71, while in late Asian session it was close to its lows.

WTI crude oil rose from the three-month low reached recently but remains below the $50 a barrel level.

Further ahead, the main highlight of the day would be the much-awaited US jobs report with employers expected to have added 190,000 workers to payrolls, according to a poll by Reuters. The Canadian jobs report and manufacturing data out of the UK will also be on the watch list.




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ASIAN SESSION – DOLLAR FADES STRENGTH AHEAD OF FED CHAIR YELLEN’S SPEECH; YEN GAINS AFTER JAPAN CPI

ASIAN SESSION – DOLLAR FADES STRENGTH AHEAD OF FED CHAIR YELLEN’S SPEECH; YEN GAINS AFTER JAPAN CPI

ASIAN SESSION – DOLLAR FADES STRENGTH AHEAD OF FED CHAIR YELLEN’S SPEECH; YEN GAINS AFTER JAPAN CPI

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Buz Investors ASIAN SESSION The dollar faded its recent strength that was driven by increasing confidence that the Federal Reserve will raise rates this month. The yen strengthened after four days of losses, following data that showed a moderate rise in Japanese inflation.

Japan’s core CPI number rose 0.1% year-on-year in January and was the first increase since December 2015. It was expected to remain flat after a 0.2% decline in December. The uptick in inflation would be a relief for the Bank of Japan, although the rate still has a long way to go to reach the Bank’s 2% target.

 




 

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ASIAN SESSION

 

The data helped boost the yen against the dollar, giving it some reprieve after four consecutive days of losses. Dollar / yen eased down to an Asian session low of 114.06 after the pair hit a 2-week high of 114.58 yesterday.

The dollar index took a breather today after rising to its highest level since January 11 yesterday, on the back of rising expectations for a March rate hike by the Fed at its upcoming policy meeting. Several Fed officials speaking in recent days, indicated their support for higher rates soon and this has raised the implied probability of a move by the Fed this month.

All eyes now turn to Fed Chair Janet Yellen and Vice Chair Stanley Fischer who are both due to speak in Chicago later today. Investors will look for more insight into the US central bank’s rate hike path but many expect them to maintain the Fed’s recent hawkish tone. Other Fed officials due to speak today include Charles Evans, Jeffrey Lacker and Jerome Powell. From tomorrow, the Fed will enter a blackout period until its policy meeting on March 14-15.

The pull back in dollar strength helped the euro and sterling trim losses. The euro moved off a 7-week low hit yesterday at 1.0494 to rise to an Asian session high of 1.0526. Cable was steady between 1.2254 and 1.2282.

Commodity-linked currencies were weighed by falling commodity prices that were hit by a broadly strong dollar. Aussie / dollar fell to a 1-month low of 0.7542. WTI oil is consolidating losses after falling to a 3-week low of $52.52 a barrel yesterday. Gold extended losses during the Asian session to reach a 2-week low of $1225.39 an ounce.

Looking at economic data for the rest of the day, focus will be on services PMI surveys that will be released out of the Eurozone, the UK and the US. The highlight of the day will be Fed Chair Janet Yellen’s speech in Chicago.




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ASIAN SESSION – GOLD AT 3-MONTH HIGHS ON SOFTER DOLLAR AFTER MNUCHIN COMMENTS

ASIAN SESSION – GOLD AT 3-MONTH HIGHS ON SOFTER DOLLAR AFTER MNUCHIN COMMENTS

ASIAN SESSION – GOLD AT 3-MONTH HIGHS ON SOFTER DOLLAR AFTER MNUCHIN COMMENTS

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Buz Investors GOLD AT 3-MONTH HIGHS  Gold consolidated gains at a 3-month high as the US dollar was on track to end the week with losses. The greenback touched a 2-week low against the yen on Thursday after being weighed by disappointing US jobless claims data and US Treasury Secretary Steven Mnuchin’s remarks.

The number of Americans applying for unemployment benefits increased by 6,000 to 244,000 in the week ending February 18 from the previous week’s revised total of 238,000. Expectations were for jobless claims to rise by 2,000 to 241,000 last week.



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GOLD AT 3-MONTH HIGHS

Meanwhile, the dollar was already under pressure after the FOMC minutes on Wednesday, which did not give a clear picture about when the next Fed rate hike would take place. Additionally, the greenback was dragged down by comments yesterday from Secretary Mnuchin who said the government’s policies will have a limited impact on the economy this year.

Hawkish remarks by FOMC member Robert Kaplan yesterday helped cushion a further decline in the dollar. Kapan said the Fed should raise rates sooner rather than later.

Dollar / yen consolidated losses just below the key 113-yen level in Asian trading.

The euro maintained gains against the dollar to move further away from a one-month low hit earlier this week. Euro / dollar rose to a session high of 1.0594. Further gains may be limited due to concerns over the French elections weighing on the currency.

Gold was buoyed by a slump in the dollar, and rose to a new 3-month high in late Asian session trading, to hit $1254.19 an ounce.

Oil was helped higher after the EIA inventory report yesterday showed a smaller-than-expected build in US crude inventories. Crude stockpiles rose 0.6 million barrels versus 3.4 million anticipated last week. This was much lower than the prior week’s 9.5 million barrels. WTI oil remained above $54 a barrel while Brent crude traded above $56 a barrel.

The economic calendar is light for the rest of the day, with markets focusing only on Canadian inflation data and US new home sales.



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Buz Investors ASIAN SESSION The US dollar continued its corrective move against the yen in Asia today. After hitting a more-than two-week high above 114-yen this week

ASIAN SESSION – DOLLAR STEADIES AFTER DROP TO ONE-WEEK LOW AGAINST YEN

ASIAN SESSION – DOLLAR STEADIES AFTER DROP TO ONE-WEEK LOW AGAINST YEN

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Buz Investors ASIAN SESSION The US dollar continued its corrective move against the yen in Asia today. After hitting a more-than two-week high above 114-yen this week, following hawkish comments from Fed Chair Janet Yellen and upbeat US inflation and retail sales data, the greenback failed to maintain the rally.



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ASIAN SESSION

The dollar index, which measures the US currency against a basket of six other major counterparts, was flat in Asian trading after having dropped 0.7 per cent on Thursday.

Dollar/yen traded just below 113.50 yen during the Asian session after hitting as high as 114.95 earlier in the week, as investors took the opportunity to book profits from the pair’s gains in the past few days. The Philly Fed manufacturing index released yesterday showed a jump to a 33-year high of 43.3 in February, from 23.6 in January. This data added to the week’s strong run of US data on retails sales and inflation but failed to lift the dollar. Political issues are also in play in the markets, aside from economic fundamentals, as investors are trying to assess the implication of US President Trump’s policies.

The euro held onto gains made versus the dollar after a big jump yesterday to a one-week high of $1.0678. The single currency is poised to end the week higher against the dollar following sharp losses in the previous week due to market concerns of political risks to the Eurozone.

Sterling held onto yesterday’s gains made against the dollar, to trade around the key $1.2500 level. UK retail sales will be in focus later in the day, which could have an impact on the pound.

The Aussie was little changed after having hit a three-month high of $0.7731 versus the greenback on mixed Australian jobs data yesterday.

The New Zealand dollar was under pressure after disappointing retails sales numbers. The kiwi fell below the key $0.7200 level in late Asian trading.

Oil prices steadied today, with WTI oil trading back above the $53 a barrel level after a sharp dip the previous day amid continued concerns about rising US crude inventories. Gold is heading for a weekly gain, as the dollar’s strength faded this week. The precious metal traded at $1,237 an ounce.

Looking ahead to the rest of the day, the main focus will be on UK retail sales data and the Eurozone current account.



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ASIAN SESSION – GOLD UNDER PRESSURE AS DOLLAR FIRMS ON TRUMP TAX PLEDGE; CHINA TRADE SURPLUS WIDENS

ASIAN SESSION – GOLD UNDER PRESSURE AS DOLLAR FIRMS ON TRUMP TAX PLEDGE; CHINA TRADE SURPLUS WIDENS

ASIAN SESSION – GOLD UNDER PRESSURE AS DOLLAR FIRMS ON TRUMP T AX PLEDGE; CHINA TRADE SURPLUS WIDENS

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Buz Investors ASIAN SESSION  The strength of the dollar followed through from yesterday’s US session on President Donald Trump’s tax pledge. Meanwhile, upbeat trade data out of China showed signs of stability in the world’s second largest economy, helping lift risk appetite in today’s Asian markets.

In January, the figures were strong on both exports and imports in China. Exports jumped 7.9 per cent year-on- year in dollar terms, beating forecasts, while imports rose by 16.7 percent, also beating estimates. The trade surplus widened to $51.4 billion from $40.8 billion



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ASIAN SESSION

In other news, the Reserve Bank of Australia published its monetary policy statement of the latest policy meeting. The Australian dollar rose 0.5 per cent to $0.7656, despite lower than expected Australian home loans data and slightly lower forecasts for long-term economic growth from the statement. The Bank does not see that a recession is likely in the economy and it expects rates to remain steady.

The dollar continued to trade above the key 113-yen level after breaking above it yesterday. The promise from US President Donald Trump of a “phenomenal” corporate tax announcement in the next few weeks helped support the greenback, which is on track for its first weekly gains versus the Japanese currency, since December.

The dollar index, which measures the US currency against a basket of major currencies, was up 0.1 per cent to 100.74 in today’s Asian session, after rising 0.4 per cent on Thursday. Trump’s talk also helped lift stocks markets, both in the US and Asia.

The stronger dollar, higher US Treasury yields and gains in equity markets, all helped push gold lower. The precious metal slipped 0.5 per cent in Asia trading to $1,221.55 per ounce.

The euro weakened further today as concerns grow over Greece’s debt burden and lenders are battling over how to handle the country’s bailout. Eurozone governments and the International Monetary Fund are failing to come to an agreement ahead of payment deadlines Greece has to make in April and July. The euro fell to as low as $1.0635 by late Asian session trading.

Looking ahead to the rest of the day, UK industrial production will be in focus during the European session. In the North American session, Canadian jobs data and the US Preliminary University of Michigan consumer sentiment report are due.



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Buz Investors YEN SLIPS ON BOJ BOND BUYING Central banks moved the markets in Friday’s Asian session, ahead of the much anticipated US nonfarm payrolls report later in the day.

ASIAN SESSION – YEN SLIPS ON BOJ BOND BUYING, DOLLAR STEADY AHEAD OF JOBS DATA

ASIAN SESSION – YEN SLIPS ON BOJ BOND BUYING, DOLLAR STEADY AHEAD OF JOBS DATA

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Buz Investors YEN SLIPS ON BOJ BOND BUYING Central banks moved the markets in Friday’s Asian session, ahead of the much anticipated US nonfarm payrolls report later in the day.

The yen swung wildly in reaction to the Bank of Japan’s move to control rising Japanese bond yields. In an unscheduled operation, the BOJ bought an unlimited amount of bonds at a fixed rate in an effort to cap yields and maintain a five-month old policy of holding 10-year debt at around zero percent.




 

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YEN SLIPS ON BOJ BOND BUYING

The BOJ’s action resulted in a weaker yen by the end of the Asian session, helping the dollar regain ground to rise to 113.22 yen. The greenback had reached as low as 112.50 yen earlier in the session.

Markets were slightly risk-off at the start of the session after regional stock markets dropped after the central bank of China unexpectedly raised short-term interest rates. As markets re-opened from a week-long holiday to celebrate the Lunar New Year, officials in China boosted the target for a key benchmark in another step to tighten monetary policy.

Meanwhile, China released January’s Caixin manufacturing PMI report today. The index slowed from December’s 51.9 to come in at 51.0 last month, and missed forecasts for a 51.8 reading.

The Australian dollar slipped after the data against its US counterpart to as low as $0.7638 from $0.7660 before the release. China is a key trading partner for Australia.

In other currencies, the euro remained weaker against the dollar after a big tumble yesterday and traded to as low as $1.0744. Sterling also held onto losses versus the greenback to touch a session low of $1.2509.

The dollar will be in focus for the rest of the day as investors look ahead to the key US jobs report to obtain insight into the state of the American economy.

After a series of upbeat job reports so far this week, the forecasts are for a solid nonfarm payrolls report today. The US economy is expected to have added 180,000 jobs in January from December’s 156,000 jobs, and the unemployment rate is forecast to remain steady at 4.7 per cent. This will be the first NFP report since Donald Trump came into office.

Aside from the nonfarm payrolls data, the ISM non-manufacturing PMI report is due out of the US. Meanwhile, ahead of the US session, focus will be on services PMI data out of the UK and the Eurozone.

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ASIAN SESSION – US DOLLAR ON BACK FOOT FOLLOWING FED STATEMENT; AUSSIE HELPED BY TRADE NUMBERS

ASIAN SESSION – US DOLLAR ON BACK FOOT FOLLOWING FED STATEMENT; AUSSIE HELPED BY TRADE NUMBERS

ASIAN SESSION – US DOLLAR ON BACK FOOT FOLLOWING FED STATEMENT; AUSSIE HELPED BY TRADE NUMBERS

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Buz Investors US DOLLAR ON BACK FOOT  The US dollar was under some pressure during Thursday’s Asian session as the Fed statement from the previous day underwhelmed the market.

The dollar index sunk to a 2 ½ -month low following the Fed statement, which showed little urgency on behalf of the rate-setting committee to raise rates. The Fed’s decision to hold rates was unanimous and a no-change verdict was widely expected by market participants. The Fed was upbeat on US economic prospects regarding both growth and inflation. Interestingly, the Fed said that the dampening effect of weaker oil prices on headline inflation ended, which would remove an important one-off factor that kept inflation lower. Despite the Fed’s optimistic tone, there was little to suggest an imminent rate hike – say in the March meeting – which was a disappointment for dollar bulls. According to some analysts, the Fed could also be taking a wait-and-see approach with respect to the economic policies of the new administration – particularly on fiscal matters



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US DOLLAR ON BACK FOOT  

In the meantime, the latest news out of the Trump administration also did not encourage dollar buying as tensions rose between the US and Iran and as details of a phone call between Trump and Australian Prime Minister Turnbull showed that the US President could take a hard line even versus some of America’s best long-term allies.

Dollar / yen traded as low as 112.48 before rebounding to 112.82, while euro / dollar was once again testing the key psychological 1.08 level and trying to overcome it. Sterling was also doing well against the broadly weaker dollar, as pound / dollar traded just below the 1.27 mark at 1.2675. Sterling was helped by the passage of a bill through the UK parliament that allowed the government to make further progress towards getting authorization for triggering Article 50 to leave the European Union.

In the day’s economic data, positive Australian trade data for the month of December were released. The figures showed a trade surplus that far exceeded expectations as the resource-rich nation greatly benefitted from rising commodity prices. Specifically, the trade surplus number was the largest on record and stood at A$3.51 billion against the forecasted A$2.2 billion, marking an impressive 72% increase from November’s upwardly revised number. The aussie surged 0.7% upon release of the data versus the greenback with the aussie / dollar pair reaching an intraday high of 0.7651; its highest since the US elections. The pair was last at 0.7644.

Looking ahead to the remainder of the day, the main events to watch will be the Bank of England meeting, the Bank’s quarterly inflation report and the press conference of its Governor Mark Carney. The UK government is also expected to issue a policy paper on its Brexit strategy, while construction PMI for January is also going to be released. ECB President Mario Draghi will also speak near the time of Carney’s press conference. Out of the United States, weekly jobless claims and productivity / labor costs for the fourth quarter will also be monitored by market participants.

major currencies: (EUR-USD) (USD-JPY) (GBP-USD) (USD-CHF), (USD-CAD), (AUD-USD)