JAPAN: Yomiuri Poll Confirms Erosion Of Support For Kishida Cabinet
Opponents of Prime Minister Fumio Kishida's administration outnumbered its supporters in the latest Yomiuri opinion poll amid controversies surrounding the ruling Liberal Democratic Party's ties with the Unification Church and the state funeral for ex-Prime Minister Shinzo Abe.
- The approval rating of the Kishida Cabinet fell to 45% in a poll conducted by Yomiuri Shimbun over the weekend from 45% in a survey taken a month ago. The disapproval rating rose to 46% from 41% previously, exceeding the approval rating for the first time.
- The LDP remained the most popular political party, its support rate was steady at 40%. The Constitutional Democratic Party remained on 5%, while the Japan Restoration Party came third with 5% (down 1pp).
- The results of the survey reflect dynamics that have clearly shown in a suite of recent opinion polls by other major pollsters. Support for the Prime Minister sits at its worst levels since the inauguration of Kishida's Cabinet.
- A separate poll by Asahi Shimbun further highlighted headwinds to the ruling party posed by the current economic circumstances, as 70% of respondents said they were feeling the burden of rising prices, while 71% deemed Kishida's response insufficient.
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AUSSIE 10-YEAR TECHS: (U2) Outlook Deteriorating
- RES 3: 97.455 - High Mar 18
- RES 2: 97.185/275 - High Apr 5 / 200-dma
- RES 1: 97.040 - High Aug 03
- PRICE: 96.340 @ 16:07 BST Sep 2
- SUP 1: 96.245 - Low Sep 1
- SUP 2: 96.208 - 3.0% Lower Bollinger Band
- SUP 3: 95.663 - Low Jun 16
Aussie 10yr futures slipped further late last week and have dipped below key support at 96.355, Jul 22 low. This weakens the bull cycle posted since mid-June, opening the gap with the 200-dma on the continuation contract, at 97.275. The bull trigger is 97.040, the Aug 3 high. On the downside, recent weakness suggests scope for a deeper retracement towards the mid-Jun low of 95.663.
USDCAD TECHS: Key Resistance Remains Exposed
- RES 4: 1.3300 High Nov 4 2020
- RES 3: 1.3292 2.0% 10-dma envelope
- RES 2: 1.3224 High Jul 14 and key resistance
- RES 1: 1.3208 High Sep 1
- PRICE: 1.3084 @ 16:01 BST Sep 2
- SUP 1: 1.3063/1.2983 High Aug 23 / 20-day EMA
- SUP 2: 1.2895 Low Aug 25 and key near-term support
- SUP 3: 1.2828 Low Aug 17
- SUP 4: 1.2770 Low Aug 15
USDCAD rallied again Thursday, with the bull theme remaining in tact despite the Friday pullback. Attention is on 1.3224, a key resistance and the Jul 14 high. A break would represent an important bullish development. Note that moving average studies are in a bull mode set-up, highlighting a broader uptrend. Initial firm support is at 1.2895. A break would alter the picture. Initial support lies at .3063, the Aug 23 high and a recent breakout level.
US TSYS: Jobs, Orders Data Doesn't Preclude 75Bp Sep Hike, Fed Blackout in 1 Wk
Tsys trading moderately higher after the bell, near midmorning highs after a somewhat volatile first half, curves bull steepening (2s10s +5.363 at -20.069).
- Tsys whipsawed, extending session range to the down and upside in short order after August jobs gain of +315k - little better than +298k est while focus turned to avg hourly earnings, unemployment misses. Tsys extended highs after midmorning data missed est's: Factory Orders -1.0% vs. 0.2%, Durables -0.1% vs. 0.0% est.
- In-line with sporadic selling, BMO analysts summed up the in-line to mildly softer data saying "there is nothing in today's data that would bring into question Powell's ability to hike 75 bp on Sept 21 in the event the CPI release justifies such a move."
- Nevertheless, markets appeared to have taken data with a dovish tone as short end markets started to discount chances of 75bp hike at Sep 21 FOMC.(appr 60% vs. 75% on Thursday): Short end Eurodollar futures, lead quarterly EDU2 +0.0725 at 96.665 session high.
- Meanwhile, US markets closed Monday for extended holiday weekend, giving Fed speakers limited time to express their policy leaning ahead next media blackout next Friday at midnight.
- Currently, 2-Yr yield is down 10.2bps at 3.3976%, 5-Yr is down 9.8bps at 3.2996%, 10-Yr is down 5.8bps at 3.195%, and 30-Yr is down 1.7bps at 3.3444%
