HALISTER1: INSIDE ASIA: AUD Up Before RBA; China Caixin Mfg PMI Misses Est.

INSIDE ASIA: AUD Up Before RBA; China Caixin Mfg PMI Misses Est.

(Bloomberg) -- Aussie gains ahead of RBA rate decision where the mkt is split on possibility of a rate cut. Yen, South Korea’s won and Indonesia’s rupiah advance while Malaysia’s ringgit and the Philippine peso weaken in mixed trading amid Japanese Golden Week holidays.
  • Dollar Index is set for seven straight day of declines, longest losing streak since April 30, 2015
  • Investors selling dollars ahead of U.S. non-farm payrolls data, Stephen Innes, senior trader at Oanda Asia Pacific, says in interview
    • USD/JPY continuing downtrend from last week’s BOJ inaction
  • Aussie advances for second day
    • Aussie shorts are squeezed by macro funds buying into RBA, traders say
    • Australia’s building approvals gained 3.7% in March from month earlier, better than median forecast 2.0% decline
    • Reserve Bank of Australia will probably keep policy rate unchanged at 2.00% today, according to 15 of 27 economists surveyed by Bloomberg; 12 see a cut to 1.75%
    • Even with last week’s poor CPI hanging over today’s RBA decision, the central bank may wait until June to cut rates, Bloomberg strategist Michael G. Wilson writes
  • Onshore financial markets are closed in Japan from today through May 5 for public holidays
    • USD/JPY falls to 18-month low of 106.05
    • BOJ Governor Kuroda said in Frankfurt that strong yen can have unwelcome effect on economy and officials “won’t hesitate” to add stimulus if it’s warranted
    • JPY will rally until BOJ is forced to act again: Goldman Sachs
    • PM Abe will decide on tax increase after G-7 summit in May, Nikkei newspaper reports
    • Profits at Japanese exporters may suffer by 1.14t yen this fiscal year due to currency movements alone, Nikkei reports
  • China 7-day repo rate drops
    • China Caixin April manufacturing PMI fell to 49.4, less than est. 49.8 and 49.7 in March; posting 14th consecutive month of contraction
    • Miss in Caixin China manufacturing PMI indicates that monetary & fiscal stimulus have had a limited boost for the private sector, BBVA says
  • Won rises for second day, tracking yen
    • South Korea’s consumer prices increased 1.0% in April on year, matching rate for median est. and prior month
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
40005Z AU (Reserve Bank of Australia)

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Stephen Innes (OANDA Corp)

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