South Korea’s unemployment rate decreased more than expected in June, figures from Statistics Korea showed Wednesday. The seasonally adjusted jobless rate dropped to 3.7 percent in June from 4.0 percent in May. The rate was expected to fall to 3.9 percent. In the corresponding month last year, the unemployment rate was 3.8 percent. On an unadjusted basis, the jobless rate also decreased to 3.7 percent from 4.0 percent. The number of unemployed people decreased to
Aussie gives up recent technical gains as trade concerns suck risk appetite out of broader markets. Bullish AUD data early Wednesday did little to discourage sellers. The AUD/USD is steadily driving towards the 0.7400 level heading through the Asia trading window after headlines that the US is seeking further tariffs against China caused risk appetite for the week to evaporate late on Tuesday. The US will be looking to impose tariffs on a further $200
The USD/CNH (offshore Yuan exchange rate) hourly chart shows a falling wedge breakout – a bullish continuation pattern, which indicates the rally from the June 14 low of 6.3828 has resumed. Thus, USD/CNH could revisit the recent high of 6.7329 (July 3 high). The breakout was triggered by escalating US-CHina trade tensions. Hourly chart Spot Rate: 6.6809 Daily High: 6.6916 Daily Low: 6.6455 Trend: Bullish Resistance R1: 6.6916 (session high) R2: 6.72 (May 2017 low) R2:
More comments are crossing the wires from China’s Commerce Ministry, as they respond to the new tariffs threat from the US. Key Points: Says that they are “shocked” by US actions. Says that the list put out by the US is “unacceptable”. Reiterates that it would be forced to hit back against the list put out by the US. Calls on other countries to uphold free trade rule.
According to analysts at NAB, new risks are emerging for Australian economy and need to be watched. Key Quotes “We still expect GDP to increase by around 2.9% in 2018 with strength from mining exports (LNG), public sector infrastructure  investment and a likely flow on to further strength in private investment.” “We continue to be concerned about the outlook for consumption where wages growth remains subdued (with unemployment still well above the NAIRU), electricity prices
The total number of owner occupied housing commitments in Australia increased unexpectedly in May, after falling in the previous five months, figures from the Australian Bureau of Statistics showed Wednesday. On a seasonally adjusted basis, total number of owner occupied dwelling commitments rose 1.1 percent month-over-month in May, reversing a 0.9 percent fall in April. In contrast, economists had expected 2.0 percent decline for the month. The value of owner occupied housing commitments, excluding alternations
The EUR reported losses in Asia, courtesy of risk-off sentiment and the resulting drop in EUR/JPY. The common currency is flirting with the confluence of 5-day and 50-day moving average (MA). Focus on Draghi’s speech and equity markets. Currently, the EUR/USD is reporting moderate losses around 1.1728 (confluence of 5-day MA and 50-day MA). The currency pair was dragged lower by the EUR/JPY cross, which fell more than 50 pips, courtesy of escalating US-China trade tensions
Sterling spins out an inside day from Tuesday ahead of a quiet London session. Trade fears have returned to broad markets, but the GBP is already softened after continued Brexit fears. The GBP/USD is cycling around 1.3250 through the week’s action, with Tuesday contracting into an inside day after Monday’s bearish push following the resignations of five cabinet members on Sunday over Prime Minister May’s latest Brexit proposal. Brexit concerns have dragged the Sterling lower once
China’s Assistant Commerce Minister Li Chenggang warned on Wednesday that the second round of the US tariffs on the Chinese goods harms the World Trade Organization (WTO) system and hurts globalization. The official added that the only correct choice for China-US relations was cooperation. The Trump administration threatened to slap 10 percent tariffs on an additional $200 billion worth of Chinese goods. Last hour, Kevin Brady, Chairman of the Health Subcommittee for the House Ways and
Speaking to reporters at the White House before leaving on the week-long trip, the US President Trump expressed his take on the meeting with the Russian President Putin. The Trump-Putin Summit is likely to be held in Helsinki on Monday. Key Quotes via Reuters: “So I have NATO, I have the UK which is in somewhat turmoil, and I have Putin. Frankly Putin may be the easiest of them all. Who would think?” “We’ll see