New Zealand Dollar weakens on China PMI miss as US Dollar rebounds
NZD/USD trades around 0.5860 on Friday, down 0.33% on the day, as investors react to another deterioration in Chinese business activity. China, New Zealand’s largest trading partner, reported that the official NBS Manufacturing Purchasing Managers Index (PMI) fell to 49.2 in July from 50.3 previously, missing the 50 market consensus. The Non-Manufacturing PMI also declined […]
The US Dollar rally might have found serious headwinds
The US Dollar Index (DXY) attempts to cling above the 100.00 psychological level on Friday after a nearly 1.5% selloff in the previous three days, as the Federal Reserve’s (Fed) lack of forward guidance at Wednesday’s monetary policy meeting raised concerns that the bank might fail on its commitment to fight inflation. Experts from some […]
Previous highs around 0.5860 are holding bears for now
The New Zealand Dollar (NZD) ticks lower against the US Dollar (USD) on Friday, but remains steady near eight-week highs at 0.5885, with downside attempts contained above a previous resistance area at 0.5860 so far. The Kiwi Dollar has rallied nearly 1.5% this week, boosted by a weak USD after the Federal Reserve’s (Fed) monetary […]
Asian stocks surge, led by KOSPI on AI optimism, Wall Street gains
Asian stock markets move higher on Friday, tracking overnight gains on Wall Street as a global rally in semiconductor stocks and renewed AI optimism lifted sentiment. Strong earnings from Microsoft and Amazon reinforced expectations for continued hyperscaler investment and resilient AI demand. South Korea’s KOSPI Composite surged over 14.5%, driven by major gains in SK […]
Australian Dollar inches lower as China’s NBS Manufacturing PMI falls in July
AUD/USD inches lower after registering over 1% gains in the previous day, trading around 0.7020 during the Asian hours on Friday. The pair remains subdued following the release of disappointing Chinese Purchasing Managers’ Index (PMI) data. China’s NBS Manufacturing PMI fell into contraction territory at 49.2 in July, down from 50.3 prior and below market […]
Saudi Arabia announces maritime defence alliance to protect Red Sea
Saudi Arabia and 13 other countries announced the creation of an international coalition to safeguard freedom of navigation through the Bab al-Mandeb Strait, the Red Sea and the Gulf of Aden, Reuters reported on Thursday. Saudi Arabia’s Ministry of Defence said that the Multinational Maritime Defense Alliance was established as a framework to strengthen collective […]
Key driver of UK inflation scenarios – Rabobank
RaboResearch highlights Oil as the dominant input for UK monetary policy. The Bank of England’s central forecast assumes Oil prices fall from $76 to around $71, with inflation peaking near 3.2%, but Brent already trades above $90. A severe scenario with Oil at $100 implies inflation at 4% or higher, underscoring upside risks for UK […]
Fiscal and FX coordination on policy – DBS
DBS Group Research economist Chua Han Teng analyzes Singapore’s latest SGD900mn fiscal support package and the Monetary Authority of Singapore’s (MAS) calibrated tightening of the Singapore Dollar (SGD) Nominal Effective Exchange Rate (NEER) band. The report highlights how complementary fiscal and monetary measures aim to tackle inflation and imported cost pressures while Singapore maintains a […]
FOMC repricing caps CTA upside – TD Securities
TD Securities strategists explain that Gold has bounced after the Federal Open Market Committee (FOMC) left rates unchanged and Chair Warsh signaled tolerance for an inflation shock. However, they argue that shifting hike expectations from September to December does not materially change the outlook. Entrenched CTA (Commodity Trading Advisors) short positions require a move above […]
Strong GDP supports September ECB hike – BBH
Brown Brothers Harriman’s (BBH) Elias Haddad reports EUR/USD is consolidating after a rally driven by stronger-than-expected Eurozone Q2 GDP at 0.4% quarter-on-quarter. The recovery in Eurozone activity and above-target inflation reinforce expectations for a European Central Bank (ECB) rate hike in September, though Haddad notes existing market pricing limits Euro (EUR) upside. Eurozone data backs […]
