Forex Today: Kiwi hurt by a big on NZ jobs, UK PMI, US ADP - Key

The Kiwi emerged the worst performer across the fx board in the Asian session this Wednesday, in response to worse-than expected NZ jobs data, while Aussie ignored solid Australian building consents data and dropped sharply on the back of commodities’ slump, especially due to tumbling oil and iron-ore prices. The USD/JPY pair headed towards 111 handle amid rebounding Treasury yields and broad Yen weakness. Meanwhile, the US dollar attempted minor recovery from fifteen-month lows versus its major rivals, and remained near 93 handle almost throughout the Asian trades.

Main topics in Asia

NZ unemployment rate fell to 4.8% in Q2, but jobs and participation down - Westpac

Today's NZ employment figures left a picture of continued moderate growth in economic activity, but still muted wage pressures, notes Satish Ranchhod, Economist at Westpac. 

BOJ’s Funo: Structural reforms needed as monetary easing cannot alone accelerate inflation

Reuters out with additional headlines from the BOJ board member Funo, this time calling for reforms to help achieve 2% price target.

Australia Building Permits (MoM) came in at 10.9%, above expectations (1.5%) in June

UK economy to recover in 2018 following a GDP growth ‘trough’ - NIESR

The UK economy will begin to recover next year, but will hit a GDP growth ‘trough’ this year, says the National Institute of Economic and Social Research (NIESR). 

Japan CPI to peak at 0.8% in Q4 2017 – Bloomberg

An article put out by Bloomberg this Wednesday morning in Asia says the Japanese inflation will most likely peak in the fourth quarter of 2017.

Key Focus ahead

Attention now turns towards a slew of economic releases from Switzerland, which includes the SECO consumer climate, retail sales and manufacturing PMI data. Meanwhile, there are no significant macro news on the cards from the Euroland. From the UK docket, the construction sector activity report will be published, and is seen a tad weaker at 54.3 last month versus 54.8 previous. Moving on, the US traders will gear up for the US ADP non-farm employment change numbers due to be reported ahead of the US open. Markets expect the US private sector jobs to rise by 187k in July versus a fall of 158k reported last.

GBP/USD: Downside opening up towards 1.3150 ahead of UK PMI, US ADP

After a brief phase of overnight consolidation, the GBP/USD pair broke to the downside and printed fresh daily lows at 1.3192 in the Asian session, with risks tilting towards downside ahead of the UK construction PMI and US ADP jobs report due on the cards later today.

EUR/USD: What’s next - Monthly 50-MA or Weekly 200-MA? Yield spread nears trend line hurdle

The EUR/USD dropped to 1.1785 yesterday after the US data showed the core personal consumption expenditure [PCE] in June rose 0.1% on the month and 1.5% year-on-year. The previous month’s print was revised up to 1.5% from 1.4%.

BOE Might Turn Less Divided after Weak Growth and Easing Inflation

We expect BOE to leave the Bank rate unchanged at 0.25% and the asset purchase program at 435B pound at the upcoming meeting.

Australia’s June retail sales seen at +0.2% vs. +0.6% prev. - NAB

Analysts at National Australia Bank (NAB) are out with their brief preview on what to expect from Friday’s Australian retail sales release.

US jobs: Conviction that we are at full employment remains relatively high – Goldman Sachs

Analysts at Goldman Sachs offer their insights on this Friday’s NFP release and its implications for the FOMC monetary policy.