Risk Tone Recovers From Turkey-Triggered Turmoil

Tuesday, August 14 – Asia Session Recap

During the Asia-Pacific session, we saw a string of disappointing data from China.

Chinese Industrial Production printed at 6.0% Y/Y versus consensus of 6.3% while Retail Sales printed at 8.8% Y/Y versus consensus of 9.2%. The Unemployment Rate also increased by 0.3% from 4.8% to 5.1%.

Disappointing Chinese data along with the PBoC once again weakening the reference rate has weighed on AUD sending AUDNZD to fresh session lows.

Elsewhere, the overall risk tone continues to recover from EM contagion concerns.  The Nikkei is up 2.28% along with the Topix up 1.63%. The recovery in risk tone weighed on JPY with USDJPY back above the 111.00 handle and NZDJPY above the 73.00 handle.

Regarding the latest Brexit developments, according to The Sun, Conservative Brexiteers are planning their own blueprint favouring a hard Brexit. The plan is to be released next month and to have the backing of 60 to 80 Conservative MPs.

For additional research, we’ve posted news articles from around the web below.