ForexLive Asia-Pacific FX news wrap: Australian GDP miss

• More on Bank of America cutting its forecast for economic growth in China
• European Central Bank Elderson speaking Wednesday – not on the economy or monetary policy
• S&P on New Zealand’s CA deficit – if it doesn’t narrow could trigger for rating downgrade
• SEK traders – heads up for Riksbank First Deputy Governor Breman speaking Wednesday
• Japan Chief Cabinet Secretary Hayashi says closely watching domestic, overseas mkt moves
• China Caixin Services PMI for August 2024 51.6 (expected 52.2)
• Australian Q2 2024 GDP +0.2% q/q (expected +0.3%)
• PBOC sets USD/ CNY mid-point today at 7.1148 (vs. estimate at 7.1167)
• New Zealand data – ANZ Commodity Price Index, August 2024: +2.1% m/m (prior -1.7%)
• Japan Jibun Services PMI for August 2024: 53.7 vs. prior 53.7
• US data due Wednesday – JOLTS report a Fed go-to measure of labour market health
• Harris to announce a ten-fold expansion of the tax credit for starting a small business
• Japan’s $1.75 tln state pension fund may step up domestic purchases, scale back foreign
• Australia August Non-manufacturing PMI 52.5 (prior 50.4)
• Goldman Sachs says artificial intelligence could hurt oil prices over the next decade
• Deutsche Bank on Friday’s jobs report – numbers that’ll prompt pricing of a 50bp FOMC cut
• Chile’s central bank has cut its benchmark rate to 5.5%, from 5.75%
• Bank of America cut its 2024 China GDP forecast to 4.8%
• Friday’s NFP result could prompt a 50bp rate cut by the Federal Reserve
• MUFG expects USD/JPY to fall to 141.00 by Q4
• “Gold has been lower in 10 of the last 11 Septembers”
• Forexlive Americas FX news wrap: Ugly day for risk assets
• Trade ideas thread – Wednesday, 4 September, insightful charts, technical analysis, ideas

We
had Q2 GDP data for Australia released today. The q/q came in at
+0.2%, missing the +0.3% consensus estimate and reflecting higher
government spending. If it wasn’t for this fiscal boost the GDP
would have been negative in the quarter. More in the points above.

From
China we had the Caixin Services PMI for August, coming in lower than
in July but still in expansion.

Regional
equities were lower here for the session, following the drop on Wall
Street.

USD/JPY
continued its swings, in a 70 or so point range, ending little
changed. AUD and NZD are net a touch weaker while EUR/USD added on a
few tics.

Ahead
during the US session are the JOLTS jobs numbers (preview in the
points above) and a policy speech by presidential contender US Vice
President Harris (ditto).

This article was written by Eamonn Sheridan at www.forexlive.com.