Forex Today: Aussie cheers a huge beat on Australian jobs, UK retail sales – Key

FX today mainly witnessed tight trading ranges in Asia this Thursday, as the US dollar consolidated its recent bullish theme versus its main competitors while markets remained unnerved amid notable Yuan weakness.

However, the Aussie was unperturbed by the Yuan sell-off, as a much-better-than-expected Australia’s jobs report outweighed and boosted the local currency to test the 0.7450 barrier. Its OZ counterpart, the Kiwi, traded cautiously amid mixed Asian equities and subdued oil prices amid a lack of fresh fundamental drivers.

The USD/JPY pair extended its corrective move lower and wavered around 112.75 region, as the Yen managed to regain some ground amid oversold conditions on the charts, despite mixed Japanese macro news. Also, the Bank of Japan’s (BoJ) routine adjustment in its monthly asset purchases programme could have offered some respite to the JPY bulls.  

Meanwhile, gold prices on Comex continued to trade within a striking distance of the yearly lows at $ 1220.90 amid higher Treasury yields and recent hawkish Fedspeaks.

Main topics in Asia

US Fed balancing on trade, but downside risks are emerging – Reuters

As reported by Reuters, US Federal Reserve chairman  Jerome Powell  is walking a careful line on foreign trade, opting to cautiously defer to the Trump administration, noting that it ultimately lands outside of the Fed’s responsibility.

US’s Pompeo: North Korea nuclear deal “may take some time” – Reuters

According to Reuters, US Secretary of State Mike Pompeo stated on Wednesday that achieving a denuclearization deal with North Korea could take some time.

Bank of Japan cuts JGBs buying today

The  Bank of Japan  (BoJ) slashed their purchases of the Japanese Government  Bonds  (JGBs) with a maturity of 25 – 40 year Japanese to JPY 60bn versus the JPY 70bn at the previous operation.

Australia adds whopping 50,900 jobs in June, jobless rate steadies at 5.4%

Australia  unemployment rate steadied at 5.4 percent in June, even as the economy added a whopping 50,900 jobs, the latest data published by Australia Bureau of Statistics (ABS) showed this Thursday.  

USD/CNY hits one-year high

The USD/CNY pair rose to 6.7398 today – the highest level since July 28, 2017.  The Chinese currency continues to take a beating on trade tensions.  

Asian stocks leaning to the bullish side, following in Wall Street’s footsteps

Equities  in Asia are stepping higher in Thursday’s trading, pressing into the green in lock-step with Wednesday’s US equities session, which saw stocks on the rise following positive earnings in the banking sector and the “¦

EU’s Moscovici: An escalation in EU-US trade tensions would hit financial markets

In an interview with Augsburger Allgemeine newspaper, the European Commissioner for Economic and Financial Affairs Pierre Moscovici warned about the risks to the financial markets due to escalating trade tensions between the European Union (EU) and the US.

China SAFE: Expectations on Yuan rate are basically stable in 1H

More comments  are crossing the wires, via Reuters, from China’s  fx regulator, the State Administration of  Foreign Exchange (SAFE), as It now speaks about the exchange rate level.

Japanese exports to US fall for the first time in 17 months

Japanese exports to the US fell 0.9 percent year-on-year in June – the first decline in 17 months.  

Key Focus ahead

After an eventful Asian session, markets look forward to a relatively quiet EUR calendar, as the only first-tier macro release remains the UK retail sales report due at 0830 GMT. Ahead of the European session, the Swiss trade balance will keep the traders somewhat busy.

The UK retail sales are expected to drop sharply to 0.4% m/m in June versus 1.3% last while on an annualized basis, the retail volumes are seen unchanged at 3.9% in the reported month.

In the NA session, the Canadian ADP employment change will be reported at 1230 GMT alongside the releases of the US jobless claims and Philly Fed manufacturing index. Also, in focus remains the speech by the FOMC member Quarles, as he is due to deliver opening remarks at the Alternative Reference Rates Committee Roundtable, via prerecorded video.

EUR/USD: Bearish outside-day and Yuan sell-off could hurt the EUR

The EUR/USD is mildly bid around 1.1650 but may surrender gains in Europe, courtesy of bearish technical setup and Yuan sell-off.  

GBP/USD set to test 1.30 once more as traders brace for disappointing UK Retail Sales

Thursday will be bringing Retail Sales numbers to the Sterling trading market at 08:30 GMT and bears can be expected to remain in control, with the m/m June Retail Sales indicator forecast to clock in at just 0.4%, compared to the previous month’s 1.3%.  

UK retail sales Preview: Football World Cup set to save the reputation of the UK economy growing

The UK retail sales are expected to rise 0.4% over the month in June as warm weather and the English squad proceeding in the World Cup into the semi-final boosted beer consumption and general happiness.

Canadian double-feature Friday preview: Contradicting expectations lay the ground for a choppy reaction

Canadian Inflation figures for June and Retail Sales for May are published simultaneously on Friday, July 20th, at 12:30 GMT. There are no parallel US publications, leaving the stage for these figures to move the USD/CAD.

ECB to hike rates before the next downturn – Reuters poll

According to a poll of economists undertaken by Reuters, many are expecting the European Central Bank (ECB) to lift  rates  sometime in the second half of 2019, which respondents believe will happen before the next potential economic downturn.