Aussie Dollar Rally May Continue as China Data Boosts Sentiment

2016-06-08 05:12:00 Ilya Spivak

Talking Points:

Australian Dollar corrects lower having surged following RBA meeting
Japanese Yen gains as Asian share prices pull back from monthly high
Unexpected Chinese imports jump may stoke recovery in risk appetite

A lull in high-profile event risk made for a quiet overnight session for most major currencies. The Australian Dollar corrected lower having outperformed in the aftermath of the RBA monetary policy announcement in the prior session. The anti-risk Japanese Yen edged higher as Asian stocks pulled back after the MSCI Asia Pacific regional benchmark index hit a monthly high yesterday.

Looking ahead, the absence of top-tier news items on the docket is likely to keep sentiment trends at the forefront, with upbeat Chinese trade figures a possible catalyst for a recovery in risk appetite. Imports unexpectedly rose 5.1 percent year-on-year in May, the most since September 2014. Signs of firming demand in the world’s second-largest economy may stoke broad-based optimism, boosting commodity-bloc FX while capping Yen gains.

Losing money trading the FX markets? This might be why.

Asia Session

GMT	CCY	EVENT	ACT	EXP	PREV
22:45	NZD	Mfg Activity Volume (QoQ) (1Q)	-1.2%	-	0.8%
22:45	NZD	Mfg Activity SA (QoQ) (1Q)	-2.60%	-	-2.3%
23:50	JPY	BoP Current Account Balance (¥) (APR)	1878.5b	2303.0b	2980.4b
23:50	JPY	BoP Current Account Adjusted (¥) (APR)	1625.8b	2013.7b	1893.6b
23:50	JPY	Trade Balance BoP Basis (¥) (APR)	697.1b	919.0b	927.2b
23:50	JPY	GDP SA (QoQ) (1Q F)	0.5%	0.5%	0.4%
23:50	JPY	GDP Annualized SA (QoQ) (1Q F)	1.9%	1.9%	1.7%
23:50	JPY	GDP Nominal SA (QoQ) (1Q F)	0.6%	0.6%	0.5%
23:50	JPY	GDP Deflator (YoY) (1Q F)	0.9%	0.9%	0.9%
23:50	JPY	GDP Private Consumption (QoQ) (1Q F)	0.6%	0.5%	0.5%
23:50	JPY	GDP Business Spending (QoQ) (1Q F)	-0.7%	-0.4%	-1.4%
23:50	JPY	Bank Lending Incl Trusts (YoY) (MAY)	2.2%	-	2.2%
23:50	JPY	Bank Lending Ex-Trusts (YoY) (MAY)	2.2%	2.3%	2.2%
01:30	AUD	Home Loans (MoM) (APR)	1.7%	2.5%	-0.7%
01:30	AUD	Investment Lending (APR)	-5.0%	-	0.8%
01:30	AUD	Owner-Occupier Loan Value (MoM) (APR)	0.1%	-	-1.1%
03:07	CNY	Trade Balance ($) (MAY)	49.89b	55.70b	45.56b
03:07	CNY	Exports ($) (YoY) (MAY)	-4.1%	-4.0%	-1.8%
03:07	CNY	Imports ($) (YoY) (MAY)	-0.4%	-6.8%	-10.9%
03:07	CNY	Trade Balance (CNY) (MAY)	324.77b	387.20b	298.00b
03:07	CNY	Exports (CNY) (YoY) (MAY)	1.2%	1.5%	4.1%
03:07	CNY	Imports (CNY) (YoY) (MAY)	5.1%	-2.5%	-5.7%
04:30	JPY	Bankruptcies (YoY) (MAY)	-7.32%	-	-7.08%
05:00	JPY	Eco Watchers Survey Current (MAY)	43.0	43.4	43.5
05:00	JPY	Eco Watchers Survey Outlook (MAY)	47.3	45.9	45.5

European Session

GMT	CCY	EVENT	EXP	PREV	IMPACT
07:15	CHF	CPI (MoM) (MAY)	0.2%	0.3%	Medium
07:15	CHF	CPI (YoY) (MAY)	-0.4%	-0.4%	Medium
07:15	CHF	CPI - EU Harmonized (MoM) (MAY)	0.2%	0.2%	Low
07:15	CHF	CPI - EU Harmonized (YoY) (MAY)	-0.5%	-0.5%	Low
08:00	EUR	ECB's Hansson gives news conference	-	-	Low
08:30	GBP	Industrial Production (MoM) (APR)	0.0%	0.3%	Medium
08:30	GBP	Industrial Production (YoY) (APR)	-0.4%	-0.2%	Medium
08:30	GBP	Manufacturing Production (MoM) (APR)	-0.1%	0.1%	Medium
08:30	GBP	Manufacturing Production (YoY) (APR)	-1.5%	-1.9%	Medium