26 Jun 2014
Key events on Thursday - Westpac
FXStreet (Bali) - The Westpac FX Team walks us through the main events to take into account on Thursday.
Key Quotes
"Another quiet day locally. Taiwan CBC at 6pm Syd/4pm local looks comfortably on hold, awaiting a turn in the global monetary policy cycle. In Singapore, the May industrial production will be released at 3pm Syd/1pm local. The market is predicting a headline of 2.4%, after 4.6% last month. Excluding biomed, this is tracking at 15.1%yr, pharmaceuticals, -8%yr."
"For Asia, the weaker tone to the USD should see the USD/CNY fix come in lower, although the degree of downside surprise will dictate whether USD/CNH can fall back towards the 6.22 level. Elsewhere Asian currencies didn't follow the weaker USD trend as aggressively as the majors did, so there could be some catch up today. KRW and MYR will be the preferred plays but gains could be capped by central bank efforts. INR or IDR may be a better play from a risk/reward perspective, particularly with oil prices showing some stability. We continue to like buying dips in USD/SGD as a partial hedge against other long EM Asia FX positions."
"Tonight, we are expecting a rounded down 0.2% in US May core PCE; core CPI was 0.3% in May. This would be a slight pickup from last month, when PCE printed at 0.2% rounded up. US personal income and spending will also be released tonight, as well as Fedspeak from Bullard and Lacker. In the UK, BoE Governor Carney is due to speak on the Financial Stability Review."
Key Quotes
"Another quiet day locally. Taiwan CBC at 6pm Syd/4pm local looks comfortably on hold, awaiting a turn in the global monetary policy cycle. In Singapore, the May industrial production will be released at 3pm Syd/1pm local. The market is predicting a headline of 2.4%, after 4.6% last month. Excluding biomed, this is tracking at 15.1%yr, pharmaceuticals, -8%yr."
"For Asia, the weaker tone to the USD should see the USD/CNY fix come in lower, although the degree of downside surprise will dictate whether USD/CNH can fall back towards the 6.22 level. Elsewhere Asian currencies didn't follow the weaker USD trend as aggressively as the majors did, so there could be some catch up today. KRW and MYR will be the preferred plays but gains could be capped by central bank efforts. INR or IDR may be a better play from a risk/reward perspective, particularly with oil prices showing some stability. We continue to like buying dips in USD/SGD as a partial hedge against other long EM Asia FX positions."
"Tonight, we are expecting a rounded down 0.2% in US May core PCE; core CPI was 0.3% in May. This would be a slight pickup from last month, when PCE printed at 0.2% rounded up. US personal income and spending will also be released tonight, as well as Fedspeak from Bullard and Lacker. In the UK, BoE Governor Carney is due to speak on the Financial Stability Review."