Amid a quiet Asian affair on the final trading day of this week, the Kiwi emerged the top gainer across the fx space after the Reserve Bank of New Zealand (RBNZ) Governor Orr downplayed the odds of resorting to an unconventional monetary policy. Further, the Antipodean was also buoyed by moderate risk-on, with the Asian stocks, Treasury yields and US equity futures. However, the NZD bulls lacked vigor after the Yuan fell to its weakest since March 2008 against the US dollar. The Aussie also suffered amid fresh CNY weakness and hit weekly lows sub-0.6750 levels. Meanwhile, the USD/JPY pair stood firmer around the 106.60 level amid falling Japanese price pressures and improved risk appetite.
Among the European currencies, both the EUR/USD pair and Cable remained pressured amid a broadly firmer US dollar heading into the much-awaited key central bankers speeches due later today at the US Federal Reserve’s (Fed) Jackson Hole Symposium.
On the commodities’ front, gold treaded water below the 1500 mark, with the bias leaning towards the downside while both crude benchmarks traded modestly flat after Thursday’s volatile trading.
Main Topics in Asia
NZ: Q2 Retail Sales volumes rose 0.2% – ANZ
White House adviser Kudlow: US and China officials had productive call Wednesday
US State Dept Official: Will aggressively enforce sanctions over Iran tanker – Reuters
RBNZ Orr: Rate cut reduces probability of having to do more later, Kiwi rallies 0.30%
Japan's Motegi: Results of my trade talks may be discussed on sidelines of G7
WTI ignores latest trade/political headlines, clings to 21-day SMA
N. Korean FinMIn: We are ready for both dialogue and confrontation with US
USD/CNH technical analysis: Hits ten-day after bullish breakout
Fed’s Kaplan: Sees potential for a Fed rate cut at the September FOMC meeting
Fed’s Kaplan: Paying close attention to signals from bond markets
Japan’s Iwaya: S. Korean decision to end intelligence pact regrettable
China's state-backed aluminium producer misses coupon payment on Dollar bond
USDA Official: China far short of soybean purchase after small sale
Key Focus Ahead
A slew of speeches from Fed policymakers will dominate Friday’s macro calendar, with the main focus on the Fed Chair Powell’s speech at the day 2 of the Fed’s Jackson Hole Symposium. Markets eagerly await fresh cues on the US rate cut outlook from Powell, whether he will favor a less aggressive Fed easing amid a stronger US economy or will yield in to Trump’s pressure.
Meanwhile, the European calendar remains data-dry, except for the second-liner UK BBA Mortgage Approvals while the NA docket sees the Canadian Retail Sales, US New Homes Sales and Baker Hughes Oil Rigs Count data.
The following is the list of the Fed and other global central banks’ speakers likely to speak on the sidelines of the Jackson Hole event later today.
1130 GMT Fed’s Bullard
1230 GMT Fed’s Bullard, Kaplan and Mester
1300 GMT Fed’s Mester
1330 GMT Fed’s Harker
1400 GMT Fed Chair Powell
1900 GMT BOE Governor Carney
EUR/USD: Teasing range breakdown ahead of Powell speech
EUR/USD has been restricted to a narrow range of 1.1115-1.1063 since last Friday. The pair is currently probing the lower edge of the trading range. A range breakdown, if any, could trap sellers on the wrong side of the market if Fed's Powell sounds dovish.
GBP/USD retraces from 3-week high while heading into G7, Jackson Hole
GBP/USD trims latest gains as Tories warn PM Johnson. The increasing scope of soft Brexit triggered the pair’s earlier surge. G7, global central bankers’ appearance at Jackson Hole will be followed for fresh impulse.
Gold: Looks south with symmetrical triangle breakdown on 4H
Gold has dived out a symmetrical triangle pattern on the 4-hour chart. The daily chart indicators also favor a drop to $1,480. Essentially, sellers have come out victorious in a tug of war with the bulls.
Jackson Hole: The audiences of Chairman Powell
Federal Reserve Chairman Powell will be addressing two audiences when he speaks to the high life of global banking and finance at the central bank’s annual end of summer conclave in Jackson Hole, Wyoming on Friday.
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