SGD

• Stronger USD. US jobless claims declined, another sign the labour market is still tight. US bond yields rose, supporting the USD.• AUD round trip. The AUD’s Australian labour force & stronger CNH induced gains unwound overnight. AUD a bit firmer on the crosses.• Next week. Q2 AU CPI (26 July) could make or break the case for an August RBA hike. US Fed, ECB, & BoJ policy decisions also on the schedule. A more cautious tone across markets, with a round of disappointing tech-sector earnings results and ongoing signs of tight labour market conditions rattling nerves as it points...

• China data. China’s post-COVID recovery continues to stumble. The pick-up in annual growth wasn’t as strong as anticipated.• Shaky sentiment. Growth concerns exerted some downward pressure on bond yields, commodities, the CNH, the AUD & NZD.• US trends. US retail sales due tonight. A solid report could see US rate expectations lift, supporting the USD. RBA minutes released today. Mixed fortunes across markets at the start of the new week with China’s data batch in focus. China’s post-COVID recovery continues to stumble with the economy expanding by 0.8% in Q2. As a result, the pick-up in annual growth wasn’t...

• US sentiment. US yields & the USD recovered some ground after US consumer confidence rebounded. US retail sales in focus ahead of next week’s Fed meeting.• China in focus. China Q2 GDP & monthly activity data released today. The post COVID recovery has been faltering. Soft data could dampen risk sentiment.• AUD sluggish. The AUD’s upswing has lost steam. We think offshore forces could outweigh another solid Australian labour market report this week. Relative to the substantial adjustment earlier in the week, markets were more sedate on Friday, with a bit of a reversal coming through in bonds and...