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[IFX Yana]

European Economic Preview: BoE Minutes, U.K. Claimant Count Due

The minutes of Bank of England's monetary policy meeting and U.K. claimant count figures are due on Wednesday.

At 3.00 am ET, Czech producer price data is due. Economists forecast producer price inflation to remain at 1.7 percent in June.

At 4.30 am ET, the Bank of England is scheduled to release the minutes of the Monetary Policy Committee meeting held on July 4 and 5. The central bank raised its quantitative easing by GBP 50 billion to GBP 375 billion and retained its record low 0.50 percent interest rate at its July meeting.

In the meantime, the Office for National Statistics is set to publish U.K. claimant count data for June. The number of people claiming jobseeker's allowance is forecast to increase by 5,000. The jobless rate for three months to May is seen at 8.2 percent.

Switzerland's ZEW investor confidence survey results and Italy's current account reports are due at 5.00 am ET.

Germany plans to sell zero percent Federal Treasury notes maturing on June 2014. The results of the auction are due at 5.30 am ET.

At 8.00 am ET, Poland's industrial output and producer prices are due. Industrial production is expected to grow 4.1 percent annually, following a 4.6 percent rise in May. Producer price inflation is seen slowing to 4.7 percent from 5 percent a month ago.

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[IFX Yana]

ADB Says Emerging Asia Needs Closer Ties To Offset Risks Of Economic Integration

Developing Asian economies need more co-operation to counter the risks emanating from economic and financial integration, the Asian Development Bank (ADB) said in a report on Thursday.

In its new report titled Asian Economic Integration Monitor, the lender said close integration speeds up the transmission of a crisis in one country to another as has been seen recently in Europe. In addition, greater integration may increase the income inequalities within countries even as it reduces the inequalities between countries.

With integration rising and set to continue in Asia, the region's governments need to cooperate more to offset these risks, the report said.

"Developing Asia's strong economic growth is in large part due to increased economic and financial ties within the region but greater integration can bring contagion and other risks and we must address those threats through closer cooperation," said Iwan Azis, Head of ADB's Office of Regional Economic Integration.

To offset the risks from greater integration, ADB proposed a number of measures to be implemented by Asian governments, including strengthening safety nets like the swap arrangements, building more transport links and improving its policy, regulatory and institutional frameworks.

Meanwhile, it noted that internationalizing the renminbi is likely to boost regional cooperation and integration, particularly in East and Southeast Asia.

The report said that the external environment for Asia has worsened given Europe's continuing sovereign debt and banking crisis, and the weak US economic recovery. Destabilizing capital flows and a larger-than expected slowdown in China are also major risks to the region's economic outlook.

ADB forecasts developing Asia to grow 6.6 percent in 2012 and 7.1 percent in 2013.

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[IFX Yana]

European Economics Preview: U.K. Public Finance Data Due

Public finances from the U.K. and producer prices from Germany are the major reports due on Friday, headlining a light day for the European economic news.

At 2.00 am ET, Germany's producer prices for June are due. Producer price annual inflation is seen easing to 1.8 percent in June from 2.1 percent in May. On a monthly basis, producer prices are expected to drop 0.2 percent.

France's leading index for May is due from the Conference Board at 4.00 am ET. The leading index fell 0.1 percent, while the coincident index remained flat in April.

At 4.30 am ET, the Office for National Statistics is set to publish U.K. public finances for June. Public sector net borrowing is seen at GBP 13.4 billion compared to GBP 17.9 billion in May.

Poland's net consumer prices for June are due at 8.00 am ET. Net annual inflation is expected to rise to 2.4 percent from 2.3 percent in May.

Later today, Eurozone finance ministers will meet in Brussels to discuss Spanish bank bailout. Ministers are expected to sign an agreement on the proposed financial assistance to recapitalize Spain's troubled banks.

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[IFX Yana]

Japan Govt: To Work Decisively With BoJ To Address Deflation, Yen Appreciation

The Japanese government on Monday vowed to work "decisively" with the Bank of Japan to prevent the adverse impacts of yen appreciation and deflation on the economy.

"The government will also make an utmost effort to prevent the economy from falling into vicious cycle between yen appreciation and deflation," the government said in a monthly report published by the Cabinet Office.

"The government will decisively work together with the Bank of Japan toward the exit from deflation which is the biggest challenge of Japanese economy in the short term," the report said.

Prime Minister Yoshihiko Noda held talks with Bank of Japan Governor Masaaki Shirakawa in Tokyo earlier on Monday as the yen gained further ground against euro amid worries over Spanish banking sector despite Eurogroup's approval of the bailout deal last week.

The euro fell below JPY 95 in Asian trade on Monday to its weakest level since November 2000. Meanwhile, Finance Minister Jun Azumi reportedly said that he is watching the currency moves closely and will take decisive steps to counter excessive yen gains.

Toward defeating deflation, reforming the economic structure predisposed to deflation is essential along with appropriate macroeconomic policy management, the government said in the monthly report.

Accordingly, it will deploy a broad range of policy measures intensively by fiscal 2013 "to mobilize goods, people, and money." The government said it expects the central bank to continue powerful monetary easing until the economy exits deflation. The BoJ has set an inflation target of 1 percent.

According to the report, movements toward sound economic recovery in the Japanese economy are expected to take hold in the short-term due to reconstruction demand. However, there are widespread concerns about further slowdown of overseas economies and a high degree of uncertainty persists about the prospects of the Eurozone debt crisis.

The report noted that these circumstances, including negative effects that could stem from sharp fluctuations in the financial markets are downside risks to the Japanese economy. Constraints of electric power supply is another risk to the outlook, it said.

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[IFX Yana]

Hong Kong's Trade Deficit Widens In June

Hong Kong's merchandise trade deficit increased from last year in June, data released by The Census and Statistics Department showed Tuesday.

The trade deficit increased to HK$44.705 billion in June from HK$40.261 billion in the same month last year. Economists were looking for a shortfall of HK$39.5 billion.

Export of goods decreased 4.8 percent year-on-year to HK$278.228 billion in June. The value of re-exports decreased by 4.7 percent annually, while domestic exports fell by 10.3 percent. Compared to May, overall shipments were lower by 5.5 percent during the month.

The value of imports declined by 2.9 percent annually to HK$322.932 billion during the month. Month-on-month, arrivals decreased 2.2 percent in June.

In the first half of 2012, the value of total exports of goods edged up 0.3 percent compared to the same period last year, while imports increased by 1.4 percent, data showed.

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[IFX Yana]

European Economics Preview: U.K. GDP, German Ifo Business Confidence Due

Quarterly national accounts from the U.K. and business sentiment from Germany are the major reports due on Wednesday, headlining a busy day for the European economic news.

At 3.30 am ET, Statistics Netherlands is scheduled to release producer confidence survey data. The sentiment is expected to improve to -4.7 in July from -4.8 in June.

At 4.00 am ET, Germany's Ifo business confidence is due. Economists forecast business sentiment to fall to 104.5 from 105.3 in June. At the same time, current assessment and expectations are seen easing to 113 and 96.8, respectively.

The Office for National Statistics is set to publish first estimate for the first quarter U.K. GDP at 4.30 am ET. The economy is forecast to contract 0.2 percent sequentially after falling 0.3 percent in the prior quarter.

Germany is set to hold a long-term debt auction to raise EUR 3 billion. The results are due at 5.30 am ET.

At 6.00 am ET, the Confederation of British Industry is slated to release Industrial Trends survey results for July. The order book balance is seen at -10 percent, up from -11 percent in June.

 

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[IFX Yana]

European Economics Preview: Germany's GfK Consumer Sentiment Data Due

Consumer confidence from Germany is the major report due on Thursday, headlining a light day for the European economic news.

The market research group GfK is set to publish German consumer sentiment survey results at 2.00 am ET. The forward-looking index is expected to remain at 5.8 in August.

In the meantime, Germany's import prices are due. Economists forecast import prices to rise 1.9 percent annually in June after increasing 2.2 percent in May.

At 3.15 am ET, Sweden's economic tendency survey results are due. The index is seen easing to 98 in July from 98.7 in June.

Statistics Sweden is slated to publish producer prices for June at 3.30 am ET. Producer price inflation is seen at 0.4 percent in June, up from from 0.3 percent in May. Also, Sweden's trade balance and unemployment figures for June are due.

Half an hour later, the European Central Bank is set to release Eurozone M3 money supply for June. M3 money supply is expected to grow at a pace of 2.9 percent annually.

In the meantime, retail sales data from Poland and Italy are due. Italy's retail sales are forecast to drop 0.3 percent month-on-month in May, while Poland's retail sales are expected to rise 9 percent in June.

At 5.10 am ET, Italy's BTP auction results are due. The government plans to offer EUR 1.5 billion to EUR 2.5 billion zero coupon bonds.

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[IFX Yana]

China Industrial Profits Dip For Third Month Amid Economic Slowdown

China's industrial firms reported a decline in their profits for the third month in a row as slowing economy dampened demand, the latest figures from the National Bureau of Statistics revealed Friday.

Profits declined 1.7 percent year-on-year in June to CNY 468.2 billion. This followed a 5.3 percent drop in May and 2.2 percent fall in April.

For the first six months of the year, profits dipped 2.2 percent annually to CNY 2.31 trillion. Total industrial revenue for the first half was 11.3 percent higher than the same period last year.

Official data showed this month that growth in China's industrial production slowed to 9.5 percent in June from 9.6 percent in May. The Ministry of Industry and Information Technology said this week that the foundation for stable industrial performance is fragile and downward pressures still remain.

China's economic growth eased to 7.6 percent in the second quarter, logging the weakest growth rate since the first quarter of 2009.

The International Monetary Fund expects China's economic growth to moderate to around 8 percent this year. The Fund has warned that China faces significant downside to its economic outlook, mainly due to weak global economic conditions.

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[IFX Kerstin]

Yen Strengthens Against Majors

 

 

 

 

The Japanese yen edged higher in early Asian deals Friday as disappointing central banks actions propelled another round of safe-haven buying.

 

Market participants across the globe were expecting some strong measures from the U.S. Federal Reserve Chairman Ben Bernanke on Wednesday and the ECB president Mario Draghi yesterday. Both central bankers failed to deliver any concrete measures to shield the struggling economies.

 

Risk-averse traders stepped up safe-haven buying, lifting the yen to an 8-day high of 121.12 against the pound, 1-week high of 77.53 against the Canadian dollar and 2-day highs of 78.10 against the greenback and 81.61 against the Australian dollar.

 

The yen also challenged yesterday's highs against the rest of majors in early Friday Asian deals, rising as much as 63.20 against the NZ dollar, 79.15 against the Swiss franc and 95.05 against the euro.

 

 

 

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[IFX Kerstin]

B]Taiwan Inflation Accelerates In July[/b]

 

 

 

 

Taiwan's inflation accelerated notably in July mainly on account of higher food prices, data released by the Director-General of Budget, Accounting and Statistics showed Monday.

The consumer price index rose 2.46 percent year-on-year in July, faster than the 1.77 percent increase in the preceding month. Economists expected the index to rise 1.87 percent.

The core inflation was 0.96 percent. Food prices rose 6.27 percent annually, of which vegetables and fruit prices went up by 32.77 percent and 19.9 percent respectively. The CPI, excluding fruits and vegetables, increased just 1.29 percent.

Month-on-month, the CPI rose 0.38 percent and the core index rose 0.1 percent.

Taiwan's wholesale prices decreased 1.71 percent annually in July compared to expectations for a 1.5 percent fall. Month-on-month, the index dropped 0.08 percent.

 

 

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[IFX Kerstin]

Japan Has Y433.3 Billion Current Account Surplus

 

 

 

 

 

Japan posted a current account surplus of 433.3 billion yen in June, the Ministry of Finance said on Wednesday - down 19.6 percent on year and falling for the 16th consecutive month.

The headline figure topped forecasts for a surplus of 415.4 billion yen and a 24.9 percent annual contraction after showing a surplus of 215.1 billion and a 62.6 percent plunge in May.

The trade balance reflected a surplus of 112.0 billion yen, down 13.7 percent on year. That missed expectations for a surplus of 114.9 billion yen following the downwardly revised shortfall of 941.0 billion yen in the previous month (originally -848.2 billion yen).

Exports shed an annual 1.5 percent to 5.422 trillion yen in June. That follows the 11.3 percent jump in May, which came in at 5.054 trillion yen.

Imports eased 1.2 percent on year to 5.310 trillion yen in June, after posting an annual increase of 11.1 percent in the previous month to 5.902 trillion yen.

Goods and services saw a deficit of 81.5 billion yen in June after showing a shortfall of 941.0 billion yen a month earlier.

The financial account saw a deficit of 2.041 trillion yen, while the capital account posted a surplus of 18.8 billion yen.

The adjusted current account showed a surplus of 773.6 billion yen, beating forecasts for a surplus of 714.7 billion yen after coming in at 282.2 billion yen a month earlier.

Also on Wednesday, the Bank of Japan said that bank lending in Japan was up 1.0 percent on year in July, standing at 396.424 trillion yen. That beat forecasts for an increase of 0.8 percent, which would have been unchanged from the June reading.

Including trusts, bank lending was up an annual 0.7 percent after shedding a downwardly revised 0.6 percent in the previous month. Lending from foreign banks in Japan plummeted an annual 22.4 percent to 2.163 trillion yen after plunging 20.6 percent on year a month earlier.

Upon the release of the data, the Japanese yen held steady against major currencies, trading near 97.43 against the euro, 78.64 versus the U.S. dollar, 122.83 against the British pound and 81.11 versus the Swiss franc.

 

 

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[IFX Kerstin]

Chinese Yuan Climbs To 5-week High Against U.S. Dollar

 

 

 

 

The Chinese yuan spiked up against the U.S. dollar on Thursday in Asia. The yuan approached 6.3517 against the greenback for the first time since July 5. On the upside, the yuan may target 6.35 level. The pair closed yesterday's deals at 6.3623.

Consumer prices in China were up 1.8 percent on year in July, the National Bureau of Statistics said today.

That was slightly above forecasts for 1.7 percent, which would have been a 30-month low. It was also down significantly from the 2.2 percent reading in June.

The People's Bank of China set today's central parity rate for the yuan at 6.3387 per dollar, compared to yesterday's daily reference rate of 6.3378. The Chinese central bank sets the central parity rate every morning and allows the currency to fluctuate up to 1 percent from the level.

 

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[IFX Kerstin]

Singapore GDP Falls 0.7% On Quarter In Q2

 

 

Singapore's gross domestic product contracted a seasonally adjusted 0.7 percent in the second quarter of 2012 compared to the previous three months, the Ministry of Trade and Industry said on Friday.

That's an improvement from last month's advance reading that called for a 1.1 percent contraction. GDP was up 9.5 percent in the first quarter.

GDP was down 2.5 percent on quarter in Q4 2011, up 1.5 percent in the third quarter and up 0.9 percent in Q2.

On a yearly basis, GDP was up 2.0 percent, up from the 1.9 percent advance reading and also up from the 1.5 percent increase in the previous three months.

The manufacturing sector was the key detriment as it contracted 0.5 percent on quarter after surging a revised 20.8 percent in the previous three months. The sector climbed 4.5 percent on year.

"The pull-back in quarter-on-quarter growth was largely due to the decline in externally-oriented sectors such as electronics manufacturing, as well as wholesale trade and tourism-related services," the MTI said in a statement accompanying the data. "Growth in the electronics cluster remained weak, while the transport engineering and biomedical manufacturing clusters provided growth support."

The construction sector added 5.3 percent on year, slowing from the 6.9 percent growth in the preceding quarter. On a sequential basis, the sector decelerated to 0.9 percent from 27.9 percent in the preceding quarter, largely due to a slowdown in construction activities in the institutional and others segment, the ministry said.

The wholesale and retail trade sector contracted 0.4 percent on year, following the 0.3 percent decline in the previous quarter. On a quarter-on-quarter basis, the sector contracted by an annualized rate of 0.4 percent, mainly due to the deterioration in the wholesale trade segment. The transportation & storage sector grew at a moderated pace of 1.6 percent on year, and 7.2 percent on quarter.

Growth in the finance and insurance sector was flat at 0.1 percent on year, down from 0.5 percent in the preceding quarter. On a quarter-on-quarter basis, the sector grew at 2.1 percent (annualized), largely due to continued sluggishness in sentiment-sensitive activities such as stock market trading, the MTI said.

While the business services sector added 3.0 percent on year, it was down 3.0 percent (annualized) on quarter as economic uncertainty weighed down on business and management consultancy activities.

Upon the release of the data, the Ministry of Trade and Industry narrowed its GDP growth forecast for 2012 to 1.5 to 2.5 percent; originally, it was 1.0 to 3.0 percent.

"Given the macroeconomic backdrop, the growth outlook for the Singapore economy remains cautious," the MTI said. "Externally-oriented sectors, in particular electronics, wholesale and tourism-related services, will be affected by the slowdown in advanced economies. Continued uncertainties in the external environment will also weigh down on sentiment-sensitive segments within the finance and insurance sector. Nonetheless, there will be modest support to growth from healthy expansion in the transport engineering cluster and construction sector."

 

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[IFX Kerstin]

Japanese Economy Slows More Than Expected

 

 

Japan's gross domestic product added just 0.3 percent in the second quarter of 2012 compared to the previous three months, the Cabinet Office said on Monday in a preliminary reading - suggesting that the recovery from the March 2011 earthquake and tsunami remains stuck in neutral.

The headline figure missed forecasts for an increase of 0.6 percent following the 1.6 percent gain in the first quarter.

 

On a yearly basis, GDP added 1.4 percent - also shy of expectations for a jump of 2.5 percent following the 4.7 percent gain in the previous three months.

In a statement accompanying the release of the data, Economics Minister Motohisa Furukawa pointed out that the Japanese economy is growing and is expected to continue to do so in Q3 and beyond.

"Japan's economy continues in an uptrend led by domestic demand," he said.Furukawa acknowledged the slowdown, citing the persistent debt woes in Europe as the chief culprit.

 

Nominal GDP fell 0.1 percent on quarter, missing forecasts for a gain of 0.4 percent after collecting 1.2 percent in the three months prior.

The GDP deflator dropped an annual 1.1 percent versus forecasts for a contraction of 0.8 percent, but up from the -1.3 percent showing in the first quarter.

Private consumption was up just 0.1 percent on quarter, missing forecasts for an increase of 0.3 percent.

 

External demand eased 0.1 percentage point from GDP, while domestic demand added 0.4 point, the data showed.

 

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[IFX Kerstin]

Australian Business Conditions Deteriorates, Confidence Improves in July - Nab

 

 

NAB' survey of businessman revealed that Business conditions deteriorated to -3 from -1 in July but confidence was up sharply at +4 from -3

Deteriorating profits (-7) and falling retail sales (-3) remained the main reason behind the fall in conditions, while , progress in European debt crisis may have boosted business confidence according NAB economist

Index of employment was up 3 points to -1

 

Quotes

 

"The persistent divergence in industry conditions indicates that the Australian economy is undergoing a structural transformation towards mining and service-based industries, and away from traditional manufacturing and discretionary retailing,"

"If the RBA were to lower rates again, it would most likely occur at the back-end of this year and this would require a material slowing in the labor market and domestic activity,"

 

NAB Economist

 

 

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[IFX Kerstin]

Australian Business Conditions Deteriorates, Confidence Improves in July - Nab

 

 

NAB' survey of businessman revealed that Business conditions deteriorated to -3 from -1 in July but confidence was up sharply at +4 from -3

Deteriorating profits (-7) and falling retail sales (-3) remained the main reason behind the fall in conditions, while , progress in European debt crisis may have boosted business confidence according NAB economist

Index of employment was up 3 points to -1

 

Quotes

 

"The persistent divergence in industry conditions indicates that the Australian economy is undergoing a structural transformation towards mining and service-based industries, and away from traditional manufacturing and discretionary retailing,"

"If the RBA were to lower rates again, it would most likely occur at the back-end of this year and this would require a material slowing in the labor market and domestic activity,"

 

NAB Economist

 

 

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[IFX Kerstin]

Pound Drops To 2-day Low Against US Dollar

 

 

The British sterling slipped to a 2-day low of 1.5666 against its U.S. counterpart on Wednesday morning in Asia, compared to 1.5679 hit late New York Tuesday.

 

The cable is now staying at its 38.2 percent retracement level between its April-June highs and lows in the daily chart. If the level broken, next key support levels to watch are 1.5580 and 1.5515.

 

 

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[IFX Kerstin]

New Zealand PMI Dips To 49.4 In July

 

 

 

The manufacturing sector in New Zealand slipped unexpectedly into contraction in July, the results of the Business NZ Performance of Manufacturing Index on Thursday - showing a score of 49.4.

That's down from the revised reading of 50.0 in June, which was originally pegged at 50.2.

 

A reading above 50 indicates expansion in a sector, while a reading below 50 signals contraction.

Among the individual components of the survey, new orders came in at 52.9, followed by production (49.6), deliveries (49.1), finished stocks (47.5) and employment (47.7).

 

 

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[IFX Kerstin]

Qe can be adjusted According to Funding for Lending Scheme, Believes Boe's Fisher

 

 

 

UK economy may or may not require more QE and C bank should be ready to do so, depending on success of Funding for Lending scheme, said BoE's Fisher in article by FT

 

Quotes

 

"It's very much an alternative. QE's all about putting money into the economy. With Funding for Lending we're not injecting any cash into the economy,"

 

"The amount of cash in the economy can be regulated through QE. Then we can adjust that according to how well the Funding for Lending scheme works."

 

"Not participating in the scheme and not lending will be seen as a negative. We want to get banks to do what we want in their own interest,"

 

"If Europe were to completely fall over - it's a remote risk, but suppose it does - then the impact of Funding for Lending might be to just keep lending going at its current rate,"

 

"If we don't get a fall over in Europe, then I'd like to see some return to positive, sustained growth in lending,"

 

BoE's Fisher

 

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[IFX Kerstin]

China's House Prices Increase In July

 

 

House prices in China increased marginally in July from a month earlier, according to a report published by the National Bureau of Statistics on Saturday.

Out of the 70 major cities surveyed by the NBS, 50 cities recorded a month-on-month increase in prices. House prices in 9 cities declined during the month, while that in 11 cities remained at previous month's level.

 

Among the major cities, price growth was recorded in Beijing and Guangzhou on a monthly basis, while prices remained unchanged in Shanghai.

On an annual basis, prices decreased in 58 cities, while 11 cities recorded increase.

 

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[IFX Kerstin]

Aussie Mixed Ahead Of RBA Minutes

 

 

 

The Reserve Bank of Australia will release the minutes of its August 7 meeting in early Tuesday Asian deals at 9:30 pm ET. Ahead of the release, the aussie moved sideways against the yen but recovered from early lows against the rest of major counterparts.

 

At 9:25 pm ET, the aussie was worth 1.0457 against the U.S. dollar, 1.1814 against the euro, 1.2919 against the kiwi and 83.01 against the yen.

 

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[IFX Kerstin]

Greek PM Seeks More Time For Reforms

 

 

 

Greece needs more time to implement the reforms and spending cuts requisitioned by the country's international creditors, Prime Minister Antonis Samaras told German daily Bild, ahead of his crucial meeting with Eurozone leaders.

 

The troika consisting of the International Monetary Fund, the European Union and the European Central Bank will return to Athens in September to assess if Greece has fulfilled the bailout requirements for receiving the next installment of 31.5 billion euros.

Greece has committed to save 11.5 billion euros in public spending cuts in two years from 2013 under the bailout deal.

 

Samaras told the daily that Greece needs room to breathe, to keep the economy afloat and to boost government's revenue. More time does not automatically mean more money, he added.

"Let me be very clear. We are not asking for additional money," Samaras said, adding that the government is looking to stimulate growth and reduce the financial gap. "We will stand by our commitments and fulfill all the requirements" of the bailout program, he said.

Samaras said the consequences of returning to drachma would be disastrous for his country. It would extend the recession by another five years and push up unemployment above 40 percent. Shunning the euro could stir social unrest and democracy will face unprecedented crisis, he warned.

He admitted that a lot has gone wrong in Greece and outside Greece. "Now we are getting down to all the necessary reforms."

 

Greece is making progress in privatizations and structural reforms. Tax revenues are increasing and the economy is improving, he added.

Samaras vowed that Greece would soon have a smaller, healthier and more efficient public sector. For every ten public sector employees going into retirement, the government will only hire one new staff, he said.

Samaras will meet Eurogroup chief Jean-Claude Juncker on Wednesday and is expected to seek a two-year extension for the country's fiscal adjustment program. He will also visit French President Francois Hollande and German Chancellor Angela Merkel later this week.

 

Recently, one of the lawmakers in the Merkel government reportedly indicated that Greece may get some concessions on the bailout terms if it adheres to its reform pledges.

However, the German leadership has repeatedly insisted that any kind of leniency towards Greece both in terms of money and time is not possible.

 

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[IFX Kerstin]

New Zealand Dollar Advances Against Majors

 

 

 

The New Zealand dollar climbed against its major counterparts in the early Asian session on Thursday.

The kiwi climbed to a 2-day high of 1.5338 against the euro, more than 2-week high of 0.8180 against the greenback and a fresh 5-week high of 1.2864 against the aussie.

Against the yen, the kiwi edged up to as high as 64.26 from yesterday's close of 63.99.

 

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[IFX Kerstin]

US Dollar Drifts Up On Safe-haven Buying

 

 

The initial direction for the U.S. dollar is rather bullish in early Asian deals Friday as a fall in equity markets in the region following a negative closing in Wall Street overnight enhanced the safe-haven appeal of the currency.

 

The dollar typically strengthens in times of stock market slide as investors consider it as safe-haven.

Disappointing employment data from the United States and lingering worries about Europe weighed down the positive sentiment in the market.

 

Initial jobless claims unexpectedly increased in the week ended August 18, rising to 372,000 from the previous week's revised figure of 368,000. Economists had expected jobless claims to slip to 365,000 from the 366,000 originally reported for the previous week.

 

Also, Federal Reserve Bank of St. Louis President James Bullard said that Federal Reserve policy makers may hold off on further economic stimulus measures because of continued modest economic growth in the U.S.

 

Worries about the financial situation in Europe sent the euro paring some of its recent gains, with traders keeping a close eye on a meeting between German Chancellor Angela Merkel and French President Francois Hollande. Both Merkel and Hollande urged Greece to stick to crucial reforms in order to remain a part of the eurozone.

 

With the latest FOMC minutes turning more dovish than expected and the U.S. employment picture in the recent past showing bleak, the Fed Chairman Bernanke's speech at the Jackson Hole Symposium in the month-end is seen crucial as the market is staunch in its longing for further quantitative easing.

 

The dollar was trading 1.5855 against the pound and 78.62 against the yen after a few hours from its Asian session opening, up a few pips from Thursday's North American session closing values of 1.5863 and 78.50. No clear near-term direction is visible for the dollar against both of these currencies.

 

Bank of Japan said in a report that the corporate service prices index was down 0.2 percent on year in July, standing at 96.0 following the downwardly revised 0.4 percent contraction in June. On a monthly basis, prices were up 0.1 percent after easing 0.2 percent in June.

 

The greenback also rose as high as 0.9569 against the Swiss franc and 1.2554 against the euro in mid-morning Asian deals, up slightly from its overnight offshore closing quotes of 0.9561 and 1.2565, respectively. The dollar showed weakness in the past few sessions as elevated stimulus hopes in both the U.S. and China lifted high-yielding currencies.

 

Looking ahead, the U.K. GDP, exports & imports and government spending data-all for the second quarter are due out in the European session. Market will closely watch the developments in Europe, with the Spanish cabinet meets today and the Greek Prime Minister Antonis Samaras arrives in Berlin for talks with the German Chancellor Angela Merkel.

 

The U.S. durable goods orders for July is the lone economic data to watch in the New York session.

 

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[IFX Kerstin]

Aussie Trades Further Lower Against Major Rivals

 

 

During early Asian trading on Tuesday, the Australian currency extended its previous session's downtrend against major opponents. The Aussie declined further against the US dollar in early deals and currently trading near a new multi-week low of 1.0361 from yesterday's close of 1.0371.

 

Against its Canadian counterpart, the Aussie plunged further during today's early Asian session and as of now trading at a fresh multi-month low of 1.0263, which may be compared to Monday's closing value of 1.0278.

 

The Australian currency also edged down further against other major rivals in early Asian trading on Monday. At 7:15 pm ET, the Aussie fell to 1.2816 against the NZ dollar, 81.60 versus the Japanese yen and 1.2074 against the euro, compared to yesterday's closing values of 1.2827, 81.68 and 1.2061, respectively.

 

Australia will schedule to release the July results of the HIA new home sales index in the upcoming Asian trading hours.

 

 

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