- USDTHB: moving in the range 35.10-35.155 this morning supportive level at 35.00 resistance level at 35.30
- SET Index: 1,297.1 (+0.06%), 9 Aug 2024
- S&P 500 Index: 5,344.4 (+0.00%), 12 Aug 2024
- Thai 10-year government bond yield (interpolated): 2.603 (+0.13 bps), 9 Aug 2024
- US 10-year treasury yield: 3.90 (-4.0 bps), 12 Aug 2024
- Fed's Bowman warns of inflation risks and cautions against rate cuts
- Westpac reports a rise in Australian consumer sentiment in August after the RBA held rates steady
- China's CPI inflation rose more than anticipated in July, while PPI continued to contract
- The dollar braces for data impact on rate cut concerns
Fed's Bowman warns of inflation risks and cautions against rate cuts
Fed Governor Bowman mentioned over the weekend that she expects inflation to continue falling given the current monetary policy. She indicated that if U.S. inflation trends closer to 2%, it might be suitable to slowly reduce the policy rate. However, she urged patience, as she still perceives some potential risks of rising inflation. Bowman also pointed out that the increase in the unemployment rate might be overstating the extent of the labor market's cooling and emphasized that the Fed must remain vigilant about inflation while monitoring potential labor market weaknesses.
Westpac reports a rise in Australian consumer sentiment in August after the RBA held rates steady
Australian consumer sentiment saw a boost after the Reserve Bank decided to keep interest rates steady and the benefits of recent tax cuts began to show. However, overall consumer outlook remained generally pessimistic. The Westpac-Melbourne Institute consumer sentiment index increased by 2.8% in August, surpassing the anticipated 0.5% rise and recovering from a 1.1% drop the previous month. Despite this gain, the index stayed within the same range observed over the past two years, with sentiment still held back by persistent inflation and elevated interest rates.
China's CPI inflation rose more than anticipated in July, while PPI continued to contract
In July, China's consumer prices increased at a slightly faster rate than anticipated, largely due to weather-related disruptions affecting food supplies. Despite this, producer prices continued to decline, indicating that underlying consumption trends remain weak and posing a challenge for policymakers. The consumer price index (CPI) rose to 0.5% year-on-year in July, its highest in five months and above the 0.3% forecast, driven partly by higher food prices due to weather. On a monthly basis, the CPI increased by 0.5%, reversing June’s drop. Meanwhile, producer price index (PPI) inflation fell 0.8% year-on-year for the 22nd month in a row, matching June’s decline and slightly better than the expected 0.9% drop.
The dollar braces for data impact on rate cut concerns
The 10-year government bond yield (interpolated) on the previous trading day was 2.603, +0.13 bps. The benchmark government bond yield (LB346A) was 2.60, +1.00 bps. Meantime, the latest closed US 10-year bond yields was 3.90, -4.0 bps. USDTHB on the previous trading day closed around 35.24 moving in a range of 35.10 – 35.155 this morning. USDTHB could be closed between 35.00 - 35.30 today. The dollar index snapped its three-day rally on Friday, ending the week back where it started, albeit way off the 102.15 weekly lows set. On Monday, the dollar remained stable, with the dollar index around 103.09 as it entered APAC trading, lacking direction ahead of key economic data releases like US CPI, PPI, Retail Sales, and UoM. The Euro and Pound held steady against the Dollar, while the Yen was the strongest performer against it in the G10 on Friday. USD/JPY was at about 146.6, significantly above the lows of 141.68 from the previous Monday and the 200-week moving average of 144.54. Although the Yen weakened yesterday, it stayed well above its intraday lows after USD/JPY briefly touched 148.00.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics,
Investing, CEIC
