Asia Summary and Highlights 15 July
Assassination attempt on Trump led to one death and two injured
Asia Session
Donald Trump was shot in a rally in Butler, PA. His ear was grazed by a bullet where one attendee died and two injured. While investigation is undergoing, the assassination attempt seems to have strengthen Trump's support as his tough gesture after being shot is praised. USD opened mostly higher against major. USD/JPY opened at 158.08, which is around 20 pips higher than Friday close and is trading lower at 158 figure.
The NZ Service PMI continue to contract in June from 43 to 40.2. It seems to confirm the shift in rhetoric from the RBNZ which indicates that likely Q2 CPI will tread lower and closer to their inflation forecast. Regional sentiment is also tilted to the downside. NZD/USD never managed to close the opening gap and is trading 0.33% lower at 0.6098. AUD/USD fared better but also failed to close the opening gap to trade 0.13% lower at 0.6775 while USD/CAD once closed the gap and is currently trading 0.13% higher at 1.3656. Else, EUR/USD is down 0.1% and GBP/USD is down 0.11%, both has not closed the opening gap.
North American session
US June PPI delivered mixed data, a moderate 0.2% rise overall, a strong 0.4% rise ex food and energy, but a flat outcome ex food energy and trade, though with upward revisions to May the net data was stronger than expected. However the USD bounce on the data was brief and the USD ended weaker.
The sharpest move was on USD/JPY, with BoJ action suspected rather than confirmed, which saw a low below 157.50 and ended below 158. EUR/USD nudged above 1.09 while GBP/USD and AUD/USD gains stalled just below 1.30 and 0.68 respectively. USD/CAD was little changed while EUR/CHF was firm moving back above .9750.
Weaker preliminary July Michigan CSI data at 66.0 from 68.2 with inflation expectations, both 1-year and on a 5-10 year view, at 2.9% from 3.0% helped to sustain a softer USD tone.