Forex trading headlines for Asia Tuesday 17 June 2014
- President Barack Obama – United States to deploy up to 275 military personnel to Iraq
- Japan’s growth blueprint, the “Strategy for Reviving Japan”
- Bank of England’s Miles: May vote for a rate rise before his term ends
- Japanese Finance Minister Aso says the government needs permanent replacement revenue for tax cut
- Shell to sell $A6.1bn of shares of Woodside
- Moody’s: China’s sovereign credit profile is likely to withstand rebalancing challenges
- Hamada: BOJ doesn’t need to ease further at the moment
- RBA June meeting minutes released: AUD remains high given decline in commodity prices
- Australia New Motor Vehicle Sales data for May +0.3% m/m (vs. prior was +0.1%)
The minutes of the RBA June board meeting were released today, and as the change in tone to a (very) slightly more bearish view on the Australian economy filtered through the AUD came under some pressure, filling in buyers around 70/75 and then taking out the stops below there. Buy orders again, though, saw it stabilise near the lows around 0.9360/65, but there was no bounce to it and it soon tested lower again. Apart from the change in tone the RBA said policy was likely to stay accommodative. The board also reiterated its oft-stated view that the currency was high by historical standards, particularly given the decline in commodity prices (see bullets, above). The Shell/Woodside news was also a negative input for the AUD today.
The NZD tracked the AUD moves, though not to the same extent at all, falling on the session.
USD/JPY gained ground during the Tokyo morning along with the Nikkei stock index, but didn’t extend its rise much above 102.00 before settling around there.
Cable lost out during the session despite some relatively hawkish statements from David Miles (see bullets, above).
EUR/USD moved a little higher in the early going, up a few ticks to test over 1.3580, where it was quickly rejected and pushed back to around 1.3560.
