- USDTHB: moving in the range 34.28-34.34 this morning supportive level at 34.20 resistance level at 34.40
· SET Index: 1,556.1 (+0.83%), 31 Jul 2023
· S&P 500 Index: 4,576.7 (-0.27%), 1 Aug 2023
· Thai 10-year government bond yield (interpolated): 2.61 (+2.62 bps), 31 Jul 2023
· US 10-year treasury yield: 4.05 (+8.0 bps), 1 Aug 2023
- US job openings hit more than two-year low; labor market still tight
- Chinese manufacturing activity shrinks in July
- S. Korea July exports fall the most in over 3 years as China sputters
- Dollar shaky after US credit rating downgrade
US job openings hit more than two-year low; labor market still tight U.S. job openings fell to the lowest level in more than two years in June but remained at levels consistent with tight labor market conditions, which could spur the Federal Reserve to keep interest rates elevated for some time. Labor market resilience was underscored by the third straight monthly decline in layoffs as employers hoard workers after difficulties finding labor during the COVID-19 pandemic. There were 1.61 job openings for every unemployed person in June, up from 1.58 in May. The report from the Labor Department on Tuesday, however, suggested workers are growing a bit less confident in the labor market, with resignations plunging by the most since April 2020. Fewer workers changing jobs over time bodes well for slowing wage growth and ultimately overall inflation.
Chinese manufacturing activity shrinks in July Chinese manufacturing activity unexpectedly shrank in July, a private survey showed on Tuesday, highlighting the need for more stimulus measures from Beijing as the country’s biggest economic engines run out of steam. The Caixin manufacturing purchasing managers’ index (PMI) read 49.2 for July, lower than forecasts of 50.3 and the prior month’s reading of 50.5. A reading below 50 entails contraction. The survey showed that manufacturing output fell, while overall new business also declined. The reading also sank back into contraction territory after two months of marginal growth. The Caixin reading comes in line with the results of a government survey released on Monday, which also showed a contraction in manufacturing activity for July.
S. Korea July exports fall the most in over 3 years as China sputters South Korea's exports fell more than expected in July and at the steepest pace in more than three years, trade data showed on Tuesday, raising concerns that the downturn may drag on longer than expected amid persistently weak demand from China. Overseas sales by Asia's fourth-largest economy fell 16.5% year-on-year to $50.33 billion in July, compared with a 6.0% decline in June and a 14.5% drop tipped in a Reuters survey of economists. It was the biggest percentage fall since May 2020 and the 10th consecutive month exports fell in annual terms, the longest period since January 2020. The data showed exports of semiconductors dropped 33.6%, worsening from a 28.0% loss the previous month and marking the 12th straight month of decline for the sector. Petroleum product exports slumped 42.3%, while automobiles gained 15.0%.
Dollar shaky after US credit rating downgrade The 10-year government bond yield (interpolated) on the previous trading day was 2.61, +2.62 bps. The benchmark government bond yield (LB31DA) was 2.58, +2.00 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 4.05, +8.00 bps. USDTHB on the previous trading day closed around 34.26. Moving in a range of 34.28-34.34 this morning. USDTHB could be closed between 34.00-34.50 today. The dollar struggled to make headway on Wednesday after a cut on the U.S. government's top credit rating by Fitch raised questions about the country's fiscal outlook, though it drew some support from a relatively resilient run of economic data. Rating agency Fitch on Tuesday downgraded the United States to AA+ from AAA in a move that drew an angry response from the White House and surprised investors, coming despite the resolution two months ago of the debt ceiling crisis. That nudged the greenback lower, lifting the euro toward $1.10. The single currency was last 0.11% higher at $1.0996, after earlier touching a session-high of $1.1020. Sterling similarly gained 0.05% to $1.2782, while the U.S. dollar index was last 0.09% higher at 102.09, after slipping broadly in the wake of the Fitch news.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
