Asia Summary and Highlights 28 July
RBA's Bullock: Key question is whether tightening already delivered enough
KOSPI Down more than 10%
Asia Session
Before the August RBA meeting, RBA governor Bullock is pouring cold water on asking whether tightening already delivered enough, followed by the lagging effect on tightening. While she clearly state more upside risk from energy, softer domestic demand is also mentioned. It seems to be lowering the anticipation of market participant's imminent hiking expectation. AUD/USD is trading 0.35% lower at 0.6964. NZD/USD is trading 0.18% lower while USD/CAD is unchanged on slightly lower oil.
Regional equities are facing a bloodbath with KOSPI down more than 10% again, closely followed by a 4.5% drop in Nikkei. It is spreading to U.S. major equity indexes but a lesser magnitude. Else, USD/JPY and GBP/USD are also unchanged wioth EUR/USD up 0.02%.