Summary:

  • JAP225, CHNComp, AUS200 all see gains in Asia
  • Australian dollar outperforms on moods, PMI; New Zealand’s dollar declines on data
  • Bitcoin (BTCUSD) price storms past a $3000 barier 

After a rosy close to the Friday’s session when nearly all Europe surged above 1% and Wall Street managed to hang to all time highs (and actually add to it in some cases), Asia “had no choice: but to replicate these gains today as there was no disrupting news on the radar. As a result we see Japan (JAP225) up above 0.5%, China slightly less (0.44% for CHNComp) and Australia (AUS200) surging by nearly 1%. It seems like somewhat cooler data from China in July did not discourage investors from being bullish with global moods still upbeat.

On the currency front we have AUD outperforming and NZD being exactly on the other end of the G10 spectrum and these moves are being driven by the data. AUD takes advantage of more than solid construction PMI at 60.5 pts., up from 56 pts. in June. While it’s not the most important report, it shows that a sector that stood behind relatively high growth in Australia for years is yet to cool down. Meanwhile more and more reports from New Zealand miss expectations. Today’s inflation expectations measure softened from 2.17% to 2.09% (this is inflation expected in 2-years time). While it’s not a game changer on its own, let us recall that inflation itself was weak in second quarter and employment data missed expectations as well. With the RBNZ being the key highlight of this week (Wednesday evening European time) NZD will be under spotlight.

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Bitcoin price (BTCUSD) crushed the $3000 resistance and consolidates around $3250 early in the morning on Monday. Source: xStation5 

All these moves pale in comparison to Bitcoin rally that had been constrained by the $3000 level – no more! The price stormed through previous highs from just below that level and the level itself spiking directly north of $3200. It remains to be seen how far this surge is going to take us but it looks as if it’s a relief that a long feared “fork” that separated Bitcoin cash out of the chain, has not caused any significant disruptions.