Article / 17 July 2017 at 7:00 GMT

Morning Markets: USD ails in Asia after weak data

Consulting editor / TradingFloor




  • Singapore: Merchandise trade, incl. non-oil domestic exports (published)
  • China: GDP (published)
  • China: Fixed assets investment (published)
  • China: Industrial output (published)
  • EU: Harmonised CPI (0900 GMT) 
  • US: New York Fed manufacturing index (1230 GMT)

The US dollar index slid to a 10-month low in Asian trading on Monday after weak US retail sales and inflation data at the end of last week put the greenback in the doghouse.

The soft US data were seen reducing chances of the Fed shifting to a more aggressive tightening stance, so investors fled the dollar into higher-yielding currencies.

Sentiment in Asian shares was lifted on Monday by gains for Wall Street stocks, including a new record high close for the S&P500, on Friday.

Tokyo markets were closed on Monday for a holiday, and Asian equity markets were mixed, with Shanghai stocks tumbling before the release of a blast of Chinese economic data.

China's second-quarter GDP grew 6.9% year-on-year, matching the first quarter's pace and beating economists' average estimate of 6.8%.

Crude oil futures got off to an upbeat start to the week.

Markets await EU inflation data at 0900 GMT.

Market signals

Asian session

  • Friday's record S&P500 high helped lift investor sentiment across much of Asia
  • Weak US inflation may prompt a Fed rethink on its rate hike plans
  • Tokyo Stock Exchange was closed for a public holiday today
  • China's GDP growth for Q2 came in at 6.9%, beat 6.8% median estimate
  • RBA releases the minutes of its June meeting on Tuesday
  • US crude advanced 0.2% to $46.64 a barrel, heading for sixth day of gains
  • Gold rose 0.2% to $1,230.92/oz
  • Hong Kong's Hang Seng enjoyed a 0.59% rise at 0505 GMT, with Shanghai down 0.26%
  • South Korea's KOSPI rose 0.34% and the ASX/S&P 200, fell 0.17%

Forex ahead

  • AUD has soared to a two-year high above 0.7800, thanks to weak data from the US
  • Yen fell 0.1% to 112.60 per dollar after climbing 1.2% last week
  • Bloomberg Dollar Spot Index rose 0.1% following its 1.3% slide last week

In opinion

In a sign of a bright future for US manufacturing, the ISM Index jumped to a three-year high last month, but the trend looks weaker in PMI data, James Picerno observes.

Macro Janet
Fed chief Janet Yellen wants a weaker USD but with higher rates -- but at some point USD strength will reassert itself, says Kay Van-Petersen.

 Shanghai. Data released today showed that GDP growth in Asia's biggest economy beat expectations in Q2. Photo: Shutterstock

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