The yen softened while other major FX traded quietly, with USD/JPY nudging above 147.30 and the yuan hitting its strongest since November. Australia’s July CPI surprised on the upside, reducing prospects of a near-term RBA cut. From China, industrial profits fell for a third straight month, underscoring weak demand and persistent margin pressures.
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- China data – July Industrial profit -1.5% y/y (prior -4.3%)
- Australian monthly CPI (July 2025) 2.8% y/y (vs. 2.3% expected)
- Australian data – Q2 2025 Construction Work Done +3.0% q/q (vs. expected +0.8%)
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- Japan’s head trade negotiator Akazawa is heading back to the US on Thursday
- Australia’s Woolworths posts A$1.39b profit, down 19% but in line with forecasts
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Major FX traded in relatively subdued ranges apart from the yen, which weakened as USD/JPY edged up from just below 147.30 to above 147.80. The only news of note was confirmation that Japan’s chief trade negotiator, Akazawa, will return to Washington on Thursday for talks on Japanese investment in the U.S. Meanwhile, the Chinese yuan strengthened to its highest level against the dollar since November.
Data:
- Australia’s monthly inflation came in hotter than expected in July, moving closer to the top of the RBA’s 2–3% target band. Headline CPI rose 2.8% y/y, the fastest pace in 12 months, up from 1.9% in June and well above the 2.3% forecast. The stronger print reduces already slim prospects of a September rate cut, with market pricing for easing edging a little lower after the release.
- From China, industrial profits slipped 1.7% in the January–July period from a year earlier, with July profits down 1.5% y/y after a 4.3% drop in June. It marked a third straight monthly decline as deflationary pressures, weak domestic demand and intense competition weighed on margins. Despite Beijing’s efforts to rein in excess competition, profitability has yet to improve.
Asia-Pac
stocks:
- Australia
(S&P/ASX 200) +0.15% - Hong
Kong (Hang Seng) +0.1% - Shanghai
Composite +0.2% - Japan
(Nikkei 225) +0.3%
This article was written by Eamonn Sheridan at investinglive.com.