Cautious Mood in Asia as Markets Eye Trump-Xi Trade Call and Steel Tariff Fallout
| Action Insight Daily 6-2-25 |
Cautious Mood in Asia as Markets Eye Trump-Xi Trade Call and Steel Tariff Fallout |
Asian markets traded with a mild risk-off tone to start the week, though overall activity remains subdued due to holidays in China, Malaysia, and New Zealand. Nikkei is under pressure, weighed down by rising US-China trade tensions and US President Donald Trump's announcement of steeper steel tariffs. Hong Kong equities are also lower, reflecting regional unease. The muted mood extends to currency markets, where Dollar is softer, though the pullback remains modest. The Swiss Franc and Loonie are also on the weaker side, while Kiwi, Aussie, and Yen are firmer. Euro and Sterling are holding mid-pack. On the trade front, US National Economic Council Director Kevin Hassett said on Sunday that President Trump and Chinese President Xi Jinping could speak as soon as this week, raising hopes that communication channels remain open. "We expect a wonderful conversation about the trade negotiations," Hassett said, expressing optimism about renewed dialogue. However, last week’s heated rhetoric casts a long shadow. Trump accused Beijing of violating their preliminary trade deal, prompting a swift rebuttal from Chinese officials today, who insisted they had “strictly implemented” their commitments and decried the US claims as “seriously contrary to the facts.” Further darkening the trade outlook, Trump announced late on Friday that tariffs on imported steel and aluminum will be doubled to 50% starting June 4, aiming to provide what he called “even further security” for the U.S. steel industry. The European Commission responded sharply over the weekend, warning that the move increases economic uncertainty and imposes higher costs on both sides of the Atlantic. Brussels confirmed it is prepared to retaliate, with countermeasures now under consideration. The threat of escalating tariff battles across multiple fronts continues to weigh on investor sentiment globally.... |
AUD/USD Daily Report Daily Pivots: (S1) 0.6409; (P) 0.6431; (R1) 0.6454; More... Range trading continues in AUD/USD and intraday bias stays neutral. Further rally is expected with 0.6406 support intact. Above 0.6536 will resume the rally from 0.5913 to 61.8% retracement of 0.6941 to 0.5913 at 0.6548. However, firm break of 0.6406 will confirm short term topping, and turn bias back to the downside for 38.2% retracement of 0.5913 to 0.6536 at 0.6298. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 23:50 | JPY | Capital Spending Q1 | 6.40% | 3.80% | -0.20% | | 00:30 | JPY | Manufacturing PMI May | 49.4 | 49 | 49 | | 01:00 | AUD | TD-MI Inflation Gauge M/M May | -0.40% | 0.60% | | 06:30 | CHF | Real Retail Sales Y/Y Apr | 2.50% | 2.20% | | 07:00 | CHF | GDP Q/Q Q1 | 0.40% | 0.20% | | 07:30 | CHF | Manufacturing PMI May | 48.1 | 45.8 | | 07:50 | EUR | France Manufacturing PMI May F | 49.5 | 49.5 | | 07:55 | EUR | Germany Manufacturing PMI May F | 48.8 | 48.8 | | 08:00 | EUR | Eurozone Manufacturing PMI May F | 49.4 | 49.4 | | 08:30 | GBP | Manufacturing PMI May F | 45.1 | 45.1 | | 08:30 | GBP | Mortgage Approvals Apr | 65K | 64K | | 08:30 | GBP | M4 Money Supply M/M Apr | 0.20% | 0.30% | | 13:30 | CAD | Manufacturing PMI May | 45.3 | | 13:45 | USD | Manufacturing PMI May F | 52.3 | 52.3 | | 14:00 | USD | ISM Manufacturing PMI May | 49.3 | 48.7 | | 14:00 | USD | ISM Manufacturing Prices Paid May | 70.2 | 69.8 | | 14:00 | USD | ISM Manufacturing Employment Index May | 46.5 | | 14:00 | USD | Construction Spending M/M Apr | 0.30% | -0.50% |
|
|
|
