Asian Stocks Mixed As Markets Look To Fed, Mull US Retail Sales
Asian Stocks Talking Points:
- Asian equity trade was mixed to start the week
- Major economic data was lacking, leaving markets to look forward to the Fed
- The Dollar made some gains after strong retail figures last week
Find out what retail foreign exchange investors make of your favorite currency’s chances right now at the DailyFX Sentiment Page
Asia Pacific stocks were mixed to start a week which will probably be dominated economically by Wednesday’s monetary policy statement from the Federal Reserve.
The central bank is not expected to cut interest rates this month but futures markets still evince strong expectations that it will next month, despite the strength of domestic retail sales data seen on Friday.
Hong Kong’s Hang Sang managed gains of the order of 0.5% a day after large crowds gathered to demand the resignation of the Special Administrative Region’s Chief Executive Carrie Lam a day after she suspended a controversial extradition bill. Protesters want it withdrawn altogether.
The US Dollar continued to gain from those strong retail numbers last week. Its Australian counterpart edged higher but remains within sight of the five-month low set on Friday. Australian bond yields hit record lows last week as markets moved to price in further rate cuts from the Reserve Bank.
AUD/USD remains well within the sharp daily-chart downtrend channel which has bounded its fall from June 7’s highs.
Even a clear break above this would see the pair well below the still dominant downtrend which has capped trade since the start of last year.
Crude oil prices made further gains and held them after US Secretary of State Mike Pompeo said that the country will take all necessary actions to guarantee safe navigation in Middle Eastern waters following attacks on tankers off Oman last week.
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--- Written by David Cottle, DailyFX Research
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.