Global Markets:
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Asian stock markets: Nikkei up 0.80 %, Shanghai Composite fell 0.40 %, Hang Seng rose 0.30 %, ASX 200 gained 0.55 %
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Commodities: Gold at $1280 (+0.50 %), Silver at $17.28 (+0.75 %), WTI Oil at $48.25 (+1.10 %), Brent Oil at $49.28 (+0.60 %)
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Rates: US 10 year yield at 1.75, UK 10 year yield at 1.39, German 10 year yield at 0.15
News & Data:
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Australia ANZ Roy Morgan Weekly Consumer Confidence Index (W/E 15 May): 115.1 (prev 113.9)
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New Zealand RBNZ 2 Year Inflation Expectations (Q2): 1.64% (prev 1.63%)
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PBoC Fixes Yuan At 6.5200 (prev 6.5343)
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Japanese FinMin Aso: G7 To Discuss International Taxation, Economy & Development — BBG
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Aso: Will Attach Utmost Importance To FX Stability At G7 — RTRS
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Corporate Japan Girds For Stronger Yen In Fiscal 2016 — Nikkei
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Japan Centre For Economic Research Expects Real GDP Grew Just 0.28% In Q1
RBA Meeting Minutes:
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RBA Minutes (May): Board Discussed Cutting Rate Or Awaiting More Data
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Weakness In Domestic Cost Pressures Have Been Broad Based
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Appreciating A$ Could Complicate Economic Adjustment
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Less Momentum In Price Pressures Than Previously Thought
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Outlook For China's Economy Continued To Be Key Issue
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Labour Cost Growth Could Pick Up Sooner As Job Market Improves
Markets Update:
The US Dollar weakened overnight against most other major currencies, except the Euro and the Swiss Franc. EUR/USD consolidated in a 1.1312-25 range, while USD/CHF was stuck between 0.9770 and 0.9780.
The highest volatility was seen in AUD/USD after the release of the RBA meeting minutes. There were no surprises in the minutes, but the Australian Dollar rallied nevertheless. AUD/USD rose from 0.7285 to a high of 0.7365, while AUD/JPY rallied back above 80.00.
NZD/USD was also lifted by the rally in AUD/USD and it rose to 0.6840, up roughly 60 pips from the open. Meanwhile, rising oil prices continue to support the Canadian Dollar and USD/CAD fell to 1.2845 overnight. Support is now seen at 1.2770.
Upcoming Events:
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08:15 BST – Swiss PPI
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09:00 BST – Italian Trade Balance
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09:30 BST – UK CPI
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10:00 BST – Euro Zone Trade Balance
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13:30 BST – US Building Permits
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13:30 BST – US CPI
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13:30 BST – US Housing Starts
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13:30 BST – Canadian Manufacturing Sales
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14:15 BST – US Manufacturing Production
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14:15 BST – US Industrial Production
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17:00 BST – FOMC Member Williams speaks
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17:00 BST – FOMC Member Lockhart speaks
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21:35 BST – US API Weekly Crude Oil Stock
