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Yen weaker
Aug 10, 2015 12:03AM GMT
The yen held slightly weaker in early Asia on Monday as investors noted mixed data on bank lending and the current account and mulled disappointing trade figures from China at the weekend.
USD/JPY changed hands at 124.31, up 0.02%, while AUD/USD eased 0.21% to 0.7402 - as China is a top trade partner.
Japan reported an unadjusted June current account surplus of ¥559 billion, narrower than the ¥774 billion seen, with the adjusted at Y.130 trillion, also narrower than the ¥1.41 trillion expected.
Separately, bank lending in Japan for July rose 2.6%, a tick above the 2.5% expected.
At the weekend, China said its trade balance reached a surplus of $43.03 billion, below expectations while exports fell 8.3% in dollar terms and imports dipped 8.1% in July.
As well, China said consumer prices in July gained 1.6% year-on-year, meeting expectations, while producer prices eased 5.4%, more than expected.
The mixed data is sure to raise questions about the next step for the People's Bank of China should inflationary pressure be stirring. But it's the threat of capital outflows, with the Federal Reserve looming in the background, which complicates the government's options and makes the central bank's fight to hold the line on policy the more difficult.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.02% to 97.69.
Last week, the dollar slid lower against the other major currencies on Friday despite a solid U.S. employment report for July as investors took profits following the greenback’s recent run higher.
The Labor Department reported that the U.S. economy added 215,000 jobs last month, slightly lower than forecasts for an increase of 223,000, but still consistent with strong employment growth.
The unemployment rate remained unchanged at 5.3%, in line with expectations.
Hourly earnings, a component of the jobs report that the Federal Reserve has said must rise, ticked up 0.2%, also matching forecasts after stalling in the previous month.
The data was seen as reinforcing expectations for higher U.S. interest rates.
In the past three months the dollar has been boosted by investor expectations that the Federal Reserve will raise short term interest rates in the coming months, possibly as early as September.
In the week ahead, investors will be looking to Thursday’s U.S. retail sales data for a further indication on the durability of the economic recovery.
Elsewhere, the euro zone is to publish a flash estimate of second quarter economic growth on Friday.
On Monday, Federal Reserve Governor Stanley Fischer and Atlanta Fed President Dennis Lockhart are to speak; their comments will be closely watched.
USD/JPY changed hands at 124.31, up 0.02%, while AUD/USD eased 0.21% to 0.7402 - as China is a top trade partner.
Japan reported an unadjusted June current account surplus of ¥559 billion, narrower than the ¥774 billion seen, with the adjusted at Y.130 trillion, also narrower than the ¥1.41 trillion expected.
Separately, bank lending in Japan for July rose 2.6%, a tick above the 2.5% expected.
At the weekend, China said its trade balance reached a surplus of $43.03 billion, below expectations while exports fell 8.3% in dollar terms and imports dipped 8.1% in July.
As well, China said consumer prices in July gained 1.6% year-on-year, meeting expectations, while producer prices eased 5.4%, more than expected.
The mixed data is sure to raise questions about the next step for the People's Bank of China should inflationary pressure be stirring. But it's the threat of capital outflows, with the Federal Reserve looming in the background, which complicates the government's options and makes the central bank's fight to hold the line on policy the more difficult.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.02% to 97.69.
Last week, the dollar slid lower against the other major currencies on Friday despite a solid U.S. employment report for July as investors took profits following the greenback’s recent run higher.
The Labor Department reported that the U.S. economy added 215,000 jobs last month, slightly lower than forecasts for an increase of 223,000, but still consistent with strong employment growth.
The unemployment rate remained unchanged at 5.3%, in line with expectations.
Hourly earnings, a component of the jobs report that the Federal Reserve has said must rise, ticked up 0.2%, also matching forecasts after stalling in the previous month.
The data was seen as reinforcing expectations for higher U.S. interest rates.
In the past three months the dollar has been boosted by investor expectations that the Federal Reserve will raise short term interest rates in the coming months, possibly as early as September.
In the week ahead, investors will be looking to Thursday’s U.S. retail sales data for a further indication on the durability of the economic recovery.
Elsewhere, the euro zone is to publish a flash estimate of second quarter economic growth on Friday.
On Monday, Federal Reserve Governor Stanley Fischer and Atlanta Fed President Dennis Lockhart are to speak; their comments will be closely watched.
Gold prices down in Asia
Gold prices eased on Monday in Asia after weekend data on China's trade disappointed and investors kept a close eye out on the central bank's next move.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange eased 0.28% to $1.091.00 a troy ounce.
Also on the Comex, silver futures for September delivery slumped 0.61% to $14.730 a troy ounc.
Elsewhere in metals trading, copper for September delivery dropped 0.10% to $2.322 a pound.
Last week, copper prices dropped 2.3 cents, or 1.31%, the sixth consecutive weekly loss, amid growing concerns over the health of China's economy.
Government data released on Sunday showed that Chinese inflation for July rose 1.6%, above expectations for 1.5% and up from 1.4% in June.
The producer price index fell by a more-than-expected 5.4% last month, underling concerns over the health of the world's second largest economy.
On Saturday, data showed that the country’s trade surplus narrowed to $43.0 billion last month from $46.5 billion in June, compared to estimates for a surplus of $53.3 billion.
Chinese exports slumped 8.3% from a year earlier, worse than forecasts for a decline of 1.0%, while imports dropped 8.1%, disappointing expectations for a drop of 8.0%.
A slowdown in domestic demand indicated a recovery in the broader economy remains fragile and may need further government stimulus.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
The mixed data is sure to raise questions about the next step for the People's Bank of China should inflationary pressure be stirring. But it's the threat of capital outflows, with the Federal Reserve looming in the background, which complicates the government's options and makes the central bank's fight to hold the line on policy the more difficult.
Last week, gold futures reversed losses to end Friday's session mildly higher as traders continued to mull the timing of a Federal Reserve rate hike following the release of solid U.S. nonfarm payrolls data.
The Labor Department reported that the U.S. economy added 215,000 jobs last month, slightly lower than forecasts for an increase of 223,000, but still consistent with strong employment growth.
The unemployment rate remained unchanged at a seven-year low of 5.3%, in line with expectations.
Hourly earnings, a component of the jobs report that the Federal Reserve has said must rise, ticked up 0.2%, also matching forecasts after stalling in the previous month.
The data did little to alter expectations for a September rate increase by the Federal Reserve, but it tempered speculation for multiple rate hikes before the end of the year.
Gold fell to a five-and-a-half year low of $1,072.30 on July 24 amid speculation the Federal Reserve will raise interest rates in September for the first time since 2006.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
In the week ahead, investors will be looking to Thursday’s U.S. retail sales data for a further indication on the durability of the economic recovery.
Meanwhile, copper traders are looking ahead to a raft of Chinese economic data in the coming week, including reports on industrial production, fixed asset investment and retail sales.
On Monday, Federal Reserve Governor Stanley Fischer and Atlanta Fed President Dennis Lockhart are to speak; their comments will be closely watched.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange eased 0.28% to $1.091.00 a troy ounce.
Also on the Comex, silver futures for September delivery slumped 0.61% to $14.730 a troy ounc.
Elsewhere in metals trading, copper for September delivery dropped 0.10% to $2.322 a pound.
Last week, copper prices dropped 2.3 cents, or 1.31%, the sixth consecutive weekly loss, amid growing concerns over the health of China's economy.
Government data released on Sunday showed that Chinese inflation for July rose 1.6%, above expectations for 1.5% and up from 1.4% in June.
The producer price index fell by a more-than-expected 5.4% last month, underling concerns over the health of the world's second largest economy.
On Saturday, data showed that the country’s trade surplus narrowed to $43.0 billion last month from $46.5 billion in June, compared to estimates for a surplus of $53.3 billion.
Chinese exports slumped 8.3% from a year earlier, worse than forecasts for a decline of 1.0%, while imports dropped 8.1%, disappointing expectations for a drop of 8.0%.
A slowdown in domestic demand indicated a recovery in the broader economy remains fragile and may need further government stimulus.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
The mixed data is sure to raise questions about the next step for the People's Bank of China should inflationary pressure be stirring. But it's the threat of capital outflows, with the Federal Reserve looming in the background, which complicates the government's options and makes the central bank's fight to hold the line on policy the more difficult.
Last week, gold futures reversed losses to end Friday's session mildly higher as traders continued to mull the timing of a Federal Reserve rate hike following the release of solid U.S. nonfarm payrolls data.
The Labor Department reported that the U.S. economy added 215,000 jobs last month, slightly lower than forecasts for an increase of 223,000, but still consistent with strong employment growth.
The unemployment rate remained unchanged at a seven-year low of 5.3%, in line with expectations.
Hourly earnings, a component of the jobs report that the Federal Reserve has said must rise, ticked up 0.2%, also matching forecasts after stalling in the previous month.
The data did little to alter expectations for a September rate increase by the Federal Reserve, but it tempered speculation for multiple rate hikes before the end of the year.
Gold fell to a five-and-a-half year low of $1,072.30 on July 24 amid speculation the Federal Reserve will raise interest rates in September for the first time since 2006.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
In the week ahead, investors will be looking to Thursday’s U.S. retail sales data for a further indication on the durability of the economic recovery.
Meanwhile, copper traders are looking ahead to a raft of Chinese economic data in the coming week, including reports on industrial production, fixed asset investment and retail sales.
On Monday, Federal Reserve Governor Stanley Fischer and Atlanta Fed President Dennis Lockhart are to speak; their comments will be closely watched.
NYMEX crude drops in Asia as weak
Crude oil prices dropped in early Asia on Monday after disappointing weekend trade data from China underpinned poor demand prospects.
On the New York Mercantile Exchange, crude oil for delivery in September fell 0.44% to $43.68.
Government data released on Sunday showed that Chinese inflation for July rose 1.6%, above expectations for 1.5% and up from 1.4% in June.
The producer price index fell by a more-than-expected 5.4% last month, underling concerns over the health of the world's second largest economy.
On Saturday, data showed that the country’s trade surplus narrowed to $43.0 billion last month from $46.5 billion in June, compared to estimates for a surplus of $53.3 billion.
Chinese exports slumped 8.3% from a year earlier, worse than forecasts for a decline of 1.0%, while imports dropped 8.1%, disappointing expectations for a drop of 8.0%.
A slowdown in domestic demand indicated a recovery in the broader economy remains fragile and may need further government stimulus.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
The mixed data is sure to raise questions about the next step for the People's Bank of China should inflationary pressure be stirring. But it's the threat of capital outflows, with the Federal Reserve looming in the background, which complicates the government's options and makes the central bank's fight to hold the line on policy the more difficult.
Last week, crude oil futures tumbled towards six-year lows on Friday, amid indications that the sharp decline in U.S. drilling in recent months may be nearing an end, raising concerns that shale production could rebound and add to a supply glut.
For the week, New York-traded oil futures plunged $2.99, or 6.9%, the eighth consecutive weekly loss, as worries over high domestic U.S. oil production weighed.
Industry research group Baker Hughes (NYSE:NYSE:BHI) said late Friday that the number of rigs drilling for oil in the U.S. increased by six last week to 670, the third straight weekly gain.
There are still about 60% fewer rigs working since a peak of 1,609 in October, though the pace of declines has slowed considerably in recent weeks, fueling concerns that U.S. shale production could rebound in the months ahead.
Elsewhere, on the ICE Futures Exchange in London, Brent for September delivery fell to a session low of $48.42 a barrel, the weakest level since March 2009, before closing at $48.61, down 91 cents, or 1.84%.
On the week, London-traded Brent futures lost $2.94, or 6.9%, the sixth straight weekly decline, as ongoing concerns over a glut in world markets continued to drive down prices.
Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.
Concerns over the health of China's economy, a broadly stronger U.S. dollar and prospects of higher interest rates in the U.S. later this year also weighed.
In the week ahead, investors will be looking to Thursday’s U.S. retail sales data for a further indication on the durability of the economic recovery. Speeches by Federal Reserve officials on Monday will also be in focus.
Traders are also awaiting a raft of Chinese economic data in the coming week, including reports on industrial production, fixed asset investment and retail sales.
On Monday, Federal Reserve Governor Stanley Fischer and Atlanta Fed President Dennis Lockhart are to speak; their comments will be closely watched.
On the New York Mercantile Exchange, crude oil for delivery in September fell 0.44% to $43.68.
Government data released on Sunday showed that Chinese inflation for July rose 1.6%, above expectations for 1.5% and up from 1.4% in June.
The producer price index fell by a more-than-expected 5.4% last month, underling concerns over the health of the world's second largest economy.
On Saturday, data showed that the country’s trade surplus narrowed to $43.0 billion last month from $46.5 billion in June, compared to estimates for a surplus of $53.3 billion.
Chinese exports slumped 8.3% from a year earlier, worse than forecasts for a decline of 1.0%, while imports dropped 8.1%, disappointing expectations for a drop of 8.0%.
A slowdown in domestic demand indicated a recovery in the broader economy remains fragile and may need further government stimulus.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
The mixed data is sure to raise questions about the next step for the People's Bank of China should inflationary pressure be stirring. But it's the threat of capital outflows, with the Federal Reserve looming in the background, which complicates the government's options and makes the central bank's fight to hold the line on policy the more difficult.
Last week, crude oil futures tumbled towards six-year lows on Friday, amid indications that the sharp decline in U.S. drilling in recent months may be nearing an end, raising concerns that shale production could rebound and add to a supply glut.
For the week, New York-traded oil futures plunged $2.99, or 6.9%, the eighth consecutive weekly loss, as worries over high domestic U.S. oil production weighed.
Industry research group Baker Hughes (NYSE:NYSE:BHI) said late Friday that the number of rigs drilling for oil in the U.S. increased by six last week to 670, the third straight weekly gain.
There are still about 60% fewer rigs working since a peak of 1,609 in October, though the pace of declines has slowed considerably in recent weeks, fueling concerns that U.S. shale production could rebound in the months ahead.
Elsewhere, on the ICE Futures Exchange in London, Brent for September delivery fell to a session low of $48.42 a barrel, the weakest level since March 2009, before closing at $48.61, down 91 cents, or 1.84%.
On the week, London-traded Brent futures lost $2.94, or 6.9%, the sixth straight weekly decline, as ongoing concerns over a glut in world markets continued to drive down prices.
Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.
Concerns over the health of China's economy, a broadly stronger U.S. dollar and prospects of higher interest rates in the U.S. later this year also weighed.
In the week ahead, investors will be looking to Thursday’s U.S. retail sales data for a further indication on the durability of the economic recovery. Speeches by Federal Reserve officials on Monday will also be in focus.
Traders are also awaiting a raft of Chinese economic data in the coming week, including reports on industrial production, fixed asset investment and retail sales.
On Monday, Federal Reserve Governor Stanley Fischer and Atlanta Fed President Dennis Lockhart are to speak; their comments will be closely watched.