- USDTHB: moving in the range 35.01-35.08 this morning supportive level at 34.90 resistance level at 35.20
· SET Index: 1,518.4 (-0.92%), 8 Aug 2023
· S&P 500 Index: 4,499.4 (-0.42%), 8 Aug 2023
· Thai 10-year government bond yield (interpolated): 2.61 (-0.75 bps), 8 Aug 2023
· US 10-year treasury yield: 4.02 (-7.00 bps), 8 Aug 2023
- Declining imports compress US trade deficit in June
- Japan's real wages down for 15th month in test for BOJ policy, economy
- Chinese exports, imports shrink more than expected in July
- US dollar rises broadly as risk tolerance drops after Moody's downgrade, Chinese data
Declining imports compress US trade deficit in June The U.S. trade deficit narrowed sharply in June as businesses cut back on purchases of foreign-made capital goods, resulting in imports falling to the lowest level in more than 1-1/2 years. The trade deficit contracted 4.1% to $65.5 billion. Data for May was revised to show the trade gap narrowing to $68.3 billion instead of $69.0 billion as previously reported. Economists polled by Reuters had forecast the trade deficit shrinking to $65 billion. The nation's goods trade deficit with China fell $2.1 billion to $22.8 billion, with imports tumbling $2.3 billion. That trend could continue as China reported on Tuesday a 14.5% plunge in exports on a year-on-year basis. Despite the narrowing in June, the U.S. trade deficit average in the second quarter was higher than in the first three months of the year. The government estimated that trade was a small drag GDP last quarter after contributing to growth for four straight quarters.
Japan's real wages down for 15th month in test for BOJ policy, economy Japanese real wages fell for a 15th straight month in June, while nominal pay growth also slowed, suggesting companies will need to do more on salary hikes to drive a virtuous growth cycle and allow the central bank to consider exiting easy policies. Separate data showed Japan's consumer spending shrank for the fourth month in June, underlining the challenge facing policymakers as the economy remains underpowered despite the end of COVID curbs months ago. Japan's wage trends are closely watched by global financial markets as the Bank of Japan has emphasized that sustainable pay hikes amid four-decade-high inflation is a prerequisite for dismantling its massive monetary stimulus. Inflation-adjusted real wages, a barometer of consumers' purchasing power, fell 1.6% from a year earlier, a faster decrease than May's 0.9% drop, extending a streak of contractions since April 2022.
Chinese exports, imports shrink more than expected in July China’s key imports and exports shrank more than expected in July amid worsening global and domestic demand, although the country’s trade balance still grew past expectations for the month. The country’s trade balance rose to $80.60 billion in July from $70.62 billion in the prior month, data from the customs administration showed on Tuesday. The reading was higher than expectations of $70.60 billion. But the reading was likely driven by a bigger-than-expected drop in imports, which shrank 12.4% - much higher than expectations for a drop of 5.0%, and last month’s decline of 6.8%. Weak demand within the country - particularly in the private sector - kept imports largely depressed this year, as a post-COVID economic recovery ran out of steam through the second quarter.
US dollar rises broadly as risk tolerance drops after Moody's downgrade, Chinese data The 10-year government bond yield (interpolated) on the previous trading day was 2.61, -0.75 bps. The benchmark government bond yield (LB31DA) was 2.61, -0.50 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 4.02, -7.00 bps. USDTHB on the previous trading day closed around 34.95. Moving in a range of 35.01-35.08 this morning. USDTHB could be closed between 34.80-35.30 today. The U.S. dollar firmed across the board on Tuesday, garnering safe-haven bids, after a disappointing set of Chinese trade figures hurt the yuan and the Australian and New Zealand currencies, with European risk-sensitive currencies also sliding on the worsening global outlook. The dollar index rose 0.4% to 102.52, moving further away from Friday's one-week low in the wake of a mixed U.S. jobs report, which pointed to a cooling but still resilient labor market. China's imports and exports fell much faster than expected in July, data on Tuesday showed, with imports down 12.4% from a year earlier while exports contracted by 14.5%, in another sign of the country's faltering economic recovery and subdued global demand.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
