InvestingLive Asia-Pacific FX news wrap: Fed’s Daly shifts more dovish, September hint

Forex Short News

News and data flow was relatively light during the session, though a few notable developments emerged.
Federal Reserve Bank of San Francisco President Mary Daly adopted a more dovish tone in her latest remarks. While she emphasised that a September rate cut isn’t guaranteed, the overall shift in language leaned in that direction. As expected from a central banker, her comments included several caveats, but the change in tone was still evident.

From Japan, the Bank of Japan’s June meeting minutes were released. They offered no surprises, and given the BoJ has since updated its forecasts in July, the minutes were largely outdated.

In China, the privately surveyed July services PMI came in well above expectations and stronger than June’s reading. The report cited robust demand and a rebound in export orders.

In FX, the US dollar was broadly stronger, with the euro, Aussie, and kiwi among the notable underperformers. USD/JPY was more mixed, and as of writing, is little changed on net after earlier swings. Japan’s trade negotiator Akazawa is reportedly heading back to the US to clarify the recent trade “deal”, suggesting further negotiations are likely.

Asia-Pacific equity markets are trading higher across the board, following a strong bounce on Wall Street to start the week.

Australia
(S&P/ASX 200) +1%

Hong
Kong (Hang Seng) +0.02%

Japan
(Nikkei 225) +0.6%

Shanghai
Composite +0.4%

Take care to be aware of this, Trump appearing on market-TV Tuesday morning US time:

This article was written by Eamonn Sheridan at investinglive.com.