Asian shares trade higher

Good morning,

- The dollar calm but not far away from highs scaled after U.S. GDP data reinforced expectations that the Federal Reserve is likely to raise interest rates this year.

- Asian shares trade higher on Friday but were still set to post a monthly loss, led by China's biggest monthly drop in six years.

- $NZD is down 0.27% versus $USD in morning trade after New Zealand's ANZ Business Confidence fell to its lowest level since 2009.

- According to provisional results of the Federal Statistical Office (Destatis), retail turnover in June 2015 in Germany increased 5.1% in real terms and 5.3% in nominal terms compared with the corresponding month of the previous year. The number of days open for sale was 26 in June 2015 and 24 in June 2014.

- USD strengthened as Fed held a hawkish tone in its rate decision, and the US economy rebounded.

- Swiss Currency Shockwave is Losing its Power. The KOF Economic Barometer is once again approaching its long-term mean value in July 2015. The Economic Barometer is displaying changes of the overall economic production at an early stage. The increase of the Barometer is therefore a reaction to the unfavorable development since the cancellation of the minimum price of the Swiss franc. The increase of the Barometer to the long-term mean value does not yet mean that the Swiss economy is in “normal mode” again. However, the KOF Barometer does indicate that the Swiss economy hopes to be able to come to terms with the first shock of the Swiss franc in the next few months.

- Credit Suisse: "EURUSD has been capped below the 50% retracement of the recent fall and the 55-day average at 1.1117/32, and reversed lower," CS notes. "Beneath 1.0925 can open up a retest of the more important price lows at 1.0819/09. Near-term resistance moves to 1.1022. Above 1.1080/85 is needed to retest 1.1117/32," CS adds. CS runs a limit order to sell EUR/USD at 1.1020, with a stop at 1.1080 and a target 1.0820. Barclays: "The move below nearby support in the 1.0925 area encourages our bearish view towards the 1.0810 lows,"

- BOJ says they still see weak yen as beneficial for economy. Comments just on the wires and helping USD/JPY to 124.10; BOJ happy with yen fall as long as pace is moderate; gov Kuroda didn't intend to set cap on USDJPY with his June comment that the real effective rate was "already very low"; BOJ sources being quoted by Reuters.

- Japan's household spending figure dropped 2.0%. A miss on expectations, but follows the third strongest increase in 11 years. A similar 'however' situation with Japanese unemployment. Ticked up to 3.4% unexpectedly, but it's up off an 18-year low. Finally, Japan’s consumer prices ticked up in June, as central bank chief Haruhiko Kuroda tries to spur inflation with unprecedented monetary stimulus.

- The U.S. Economy's Top Speed Has Probably Been Overestimated for Years…Revisions to the U.S. gross domestic product since 2011 reinforce the shift to a slower era of economic growth and underscore the difficulties the Federal Reserve faces in gauging just when to inch interest rates away from the zero-lower bound. According to the Bureau of Economic Analysis, real GDP from 2011 to 2014 increased at an annual rate of 2 percent, a downgrade from the prior estimate of 2.3 percent. The Fed's July statement, meanwhile, indicated the central bank will raise rates when it has seen "some further improvement in the labor market" and is "reasonably confident" that inflation will trend toward 2%.

- Prepare for gold prices to plunge...as low as $350.Gold's big plunge may have only just begun. A prominent gold forecaster predicts the yellow metal will drop to a mere $350 an ounce, a level unseen since 2003. It's dramatically lower than what most experts are currently calling for. But Claude Erb's prediction might have merit.

- Watch for today: US employment cost, EZ inflation, EZ jobless rate, CAD GDP.

Have a great Weekend!