- USDTHB: moving in the range 35.49-35.52 this morning supportive level at 35.35 resistance level at 35.60
- SET Index: 1,274.0 (-0.05%), 6 Aug 2024
- S&P 500 Index: 5,186.3 (+1.03%), 6 Aug 2024
- Thai 10-year government bond yield (interpolated): 2.563 (+4.15 bps), 6 Aug 2024
- US 10-year treasury yield: 3.90 (+12.0 bps), 6 Aug 2024
- US trade deficit narrows to $73.1 billion as exports increase
- German industrial orders surge, boosting economic hopes
- Japan's June real wages rise for first time in nearly two years
- RBA pushes back against near-term rate cut on inflation risk
- Dollar stabilizes against yen as market eases
US trade deficit narrows to $73.1 billion as exports increase
The US trade deficit decreased for the first time in three months, as the value of goods and services exports rose by the largest amount since earlier this year. The deficit in goods and services narrowed by 2.5% from the previous month to $73.1 billion, slightly higher than the $72.5 billion shortfall predicted by a Bloomberg survey. Exports grew by 1.5%, while imports increased by 0.6%. The rise in merchandise exports was broad-based, with notable increases in shipments of commercial aircraft, natural gas, other petroleum products, and motor vehicles. Imports were driven up by higher spending on pharmaceuticals and capital goods.
German industrial orders surge, boosting economic hopes
German industrial orders surged more than expected in June, offering a hopeful sign for Europe's largest economy, which faces the possibility of recession after a contraction in the second quarter. Orders rose by 3.9% from the previous month, adjusting for seasonal and calendar factors, surpassing analysts' forecast of a 0.5% increase.
Japan's June real wages rise for first time in nearly two years
In June, Japan's inflation-adjusted real wages increased for the first time in over two years, as nominal wages surged at their fastest rate in nearly 30 years. Real wages rose by 1.1% in June, reversing a revised 1.3% decline from May and marking the first increase in 27 months. However, separate data released on Tuesday indicated that household spending dropped by 1.4% year-on-year in June, exceeding the median market forecast of a 0.9% decline. This suggests that rising living costs may be deterring consumers from increasing their spending.
RBA pushes back against near-term rate cut on inflation risk
The Reserve Bank of Australia (RBA) maintained its interest rates at 4.35%, as anticipated, and indicated that it will need to keep monetary conditions tight to address ongoing inflationary pressures. This decision marks the sixth consecutive meeting with no change in the official cash rate. The RBA's move was expected after the consumer price index (CPI) grew in line with the bank's forecasts for the second quarter. While underlying inflation eased slightly, providing some hope that it will eventually decrease, CPI inflation remains significantly above the RBA's target range of 2% to 3%, prompting a cautious stance from the central bank.
Dollar stabilizes against yen as market eases
The 10-year government bond yield (interpolated) on the previous trading day was 2.563, +4.15 bps. The benchmark government bond yield (LB346A) was 2.56, +4.00 bps. Meantime, the latest closed US 10-year bond yields was 3.90, +12.0 bps. USDTHB on the previous trading day closed around 35.43 moving in a range of 35.49 – 35.52 this morning. USDTHB could be closed between 35.35 - 35.60 today. The dollar made only slight gains, with the index staying near 103.00. The Japanese yen lagged after its recent rally, while the Australian dollar led the gains following hawkish remarks from RBA Governor Bullock, who revealed that the RBA considered a rate hike at this meeting.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics,
Investing, CEIC
