News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • 🇦🇺 Markit Services PMI Final (JUL) Actual: 44.2 Previous: 56.8 https://www.dailyfx.com/economic-calendar#2021-08-03
  • $AUDNZD likely to attempt closing at a new 2021 low over the remaining 24 hours following the stellar New Zealand jobs report The December 2020 low has been further exposed at 1.0418 since July's #RBNZ rate decision New Zealand bond yields on the rise https://t.co/ipjwkSNt9n https://t.co/ncQX4hL8G3
  • Strong jobs report lifts $NZD - Money markets pricing in a 93% probability of a 25bps hike at the August meeting (previously 77%) - Over the forecast horizon, the RBNZ had projected (in the May MPS) the unemployment rate to gradually fall to 4.3% https://t.co/G5Ejzl2H6L
  • #NZDUSD cautiously higher after solid New Zealand jobs report Unemployment rate declined to 4.0% in Q2 from 4.7% prior (vs 4.4% anticipated) Job gains were at 1.7% y/y vs 1.2% expected Data seems to be supporting the case for a less-dovish #RBNZ given the cease to QE recently https://t.co/XmzhuLXh1H
  • 🇳🇿 Unemployment Rate (Q2) Actual: 4% Expected: 4.5% Previous: 4.7% https://www.dailyfx.com/economic-calendar#2021-08-03
  • 🇳🇿 Employment Change QoQ (Q2) Actual: 1% Expected: 0.7% Previous: 0.6% https://www.dailyfx.com/economic-calendar#2021-08-03
  • Heads Up:🇦🇺 Markit Services PMI Final (JUL) due at 23:00 GMT (15min) Previous: 56.8 https://www.dailyfx.com/economic-calendar#2021-08-03
  • The Nasdaq 100 may continue outperforming Dow Jones futures ahead as fears about global growth continue weighing on the 10-year Treasury yield ahead of NFPs. What are the risks? Find out from @ddubrovskyFX here:https://t.co/kADmxIfyHt https://t.co/VUltiTLch1
  • Heads Up:🇳🇿 Unemployment Rate (Q2) due at 22:45 GMT (15min) Expected: 4.5% Previous: 4.7% https://www.dailyfx.com/economic-calendar#2021-08-03
  • Heads Up:🇳🇿 Employment Change QoQ (Q2) due at 22:45 GMT (15min) Expected: 0.7% Previous: 0.6% https://www.dailyfx.com/economic-calendar#2021-08-03
US TIC Flows Show Appettite for Debt Decreased Amid Trade Tensions

US TIC Flows Show Appettite for Debt Decreased Amid Trade Tensions

Thomas Westwater, Analyst

US TIC Flows - Talking Points

  • The US recorded Total Net TIC Outflow of $8.1 billion and a Net Long-Term TIC outflow of $28.4 billion
  • Treasury holdings by the Chinese dropped for first time in four months by $10.4 billion
  • USD could face additional pressure going forward in light of the TIC data

The US Treasury released data on international holdings of US debt today which showed a Net Long-Term TIC outflow of $28.4 billion in March. The report compares to February’s numbers where inflows of $52 billion were recorded. Although the US Dollar had a muted reaction – likely overshadowed by auto tariff headlines – the TIC report could exacerbate downward pressure on the greenback. Also, disappointing US retail sales coupled with news of USMCA progress which sent USDCAD and USDMXN swooning weighed negatively on the US Dollar during Wednesday’s trading session.

DXY US DOLLAR PRICE CHART: 5-MINUTE TIME FRAME (MAY 15, 2019 INTRADAY)

DXY

China reduced their exposure to Treasuries by $10.4 billion, marking the first decline in US debt holdings since November. Speculation has stirred whether or not China is looking to dump Treasuries in retaliation of tariffs imposed by the Trump administration – commonly referred to as a “nuclear option” among market participants.

If the trend of China trimming its holdings of Treasuries continues, the retaliatory move could in theory put a drag on the US economy. Seeing less demand for debt could push yields and borrowing costs higher. Additional evidence of China dumping Treasuries in next month’s report expected on June 17 - could send a message to President Trump and the market that trade relations between the two countries remain tense and reaching a deal may less likely than currently expected.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES