Daily FX Update, 13 August 2015

v  US’s  job openings in the U.S. decrease in June as hiring pick up v  UK’s unemployment rate edge up in June and wage growth stayed flat v  Japan's tertiary industrial activity index rose 0.3% m/m in June v  Japan’s industrial production grow a seasonally adjust 1.1% m/m in June v  China's industrial production weaken to 6% y/y in July

·         US – Job openings in the U.S. decreased in June from the highest level on record as hiring picked up. The number of positions waiting to be filled declined by 108,000 to 5.25 million from a revised 5.36 million in May.

·         US – MBA Mortgage Application edged up 0.1%. The seasonally adjusted purchase index fell 4% from the previous week. The unadjusted purchase index, also down 4% from the previous week.

·         UK – Labour market data disappointed. Employment declined 63 thousand over the three months to June, but the unemployment rate remained stable at 5.6%. In addition, wages growth remains tepid as average hourly earnings growth eased to 2.4% y/y from 3.2% y/y as the boost from bonus payments unwound their earlier strength.

·         Currency – Markets are watching for another higher Chinese ‘central parity rate’, with the consequences of this new policy regime still very uncertain. This will keep markets on edge. US retail sales will also refocus markets on the progress in the US economy and the rising probability of interest rate hikes.

·         Equity – The major US bourses fell initially but later rallied to finish broadly unchanged.

·         Rate – A sharp rally in US Treasuries during the Asia session was largely unwound overnight.

·         Energy – Crude oil prices were stronger. Prices recovered overnight after initial declines, supported by an IEA announcement and a weaker dollar. The EIA said global oil demand growth in 2015 will be the strongest in five years. WTI retreated slightly from the day’s highs after US crude inventories declined 1.68 million barrel against market expectation of 2 million barrel decrease.

Precious Metal – Gold prices also took support with investors returning back to the safety of gold amid market concerns around a potential currency war. Gold prices were traded higher by 1.33% above $US1200. 

INDICATIVE MAJOR CURRENCIES Last Close  8.05 am Snapshot        Bid                   Offer Expected Ranges for Today         Low                       High USD/MYR 4.0275 3.9820 4.0160 3.9800 4.0600 JPY/MYR (100) 3.2490 3.1960 3.2310 3.1900 3.2500 SGD/MYR 2.8688 2.8400 2.8740 2.8400 2.8900 EUR/MYR 4.5007 4.4440 4.4800 4.4200 4.5100 AUD/MYR 2.9735 2.9350 2.9690 2.9200 2.9900 GBP/MYR 6.3018 6.2170 6.2560 6.2000 6.3200 USD/JPY 123.96 124.09 124.49 123.69 124.69 EUR/USD 1.1175 1.1000 1.1310 1.1100 1.1210 AUD/USD 0.7383 0.7230 0.7540 0.7340 0.7440