Forex news for Asia-Pacific trading, June 4, 2015:
- Australia April trade balance -$3888M vs -$2100M expected
- Australia April retail sales 0.0% vs +0.3% expected
- EU's Dijsselbloem: "We will continue [Greek] talks in a few days"
- Greece sets new "deadline" for June 14
- Tsipras' statement after his dinner with Juncker
- BOJ's Kuroda: Unconventional monetary policy has been generating easing effects
- China may introduce a VAT on property, finance and some services
- Greek spokesman says gov't will opt for elections if faced with ultimatum by lenders
- NZ data - Q1 Value of Building Work Put in Place: +1% (expected +1.0%)
- Fed's Evans: Hurdle is pretty high for raising rates at the moment
- Fed's Bullard: Q1 economic data weakness transitory
- Goldman Sachs - "U.S. equity valuations look expensive on most metrics"
- Gold down 50-cents to $1184
- Shanghai Composite -1.8%
- Japan 10-year yield up 2 bps to 0.49%
- USD leads, AUD lags
The Australian dollar had rebounded earlier this week on the RBA and GDP but it was right back into the cellar after two dismal economic reports. AUD/USD was chopping along near 0.7775, virtually unchanged on the day, when the data hit. The reaction was slightly sluggish but it was eventually a drop to 0.7709. Bids at the figure are holding the line and the pair bounced to 0.7728.
The other notable move so far was in USD/JPY . The pair was in a consolidation pattern in the 124.20 to 124.40 range in US trading but made a quick move higher after Tokyo got online. That meant a rally to 124.56 from 124.30.
EUR/USD has been remarkably quiet around 1.1250 to 1.1270 after jumping 170 pips during Draghi's press conference. The two day gain ahead of today is the largest since 2009 so there's definitely scope for a pullback. There are no signs of a Greek deal and negotiations have been pushed back. Another episode of punt and pray.
Nothing much happening in cable so far. A quick dip to 1.5314 was picked up and the pair is at 1.5327, down 13 pips so far.
The kiwi followed the Aussie down but is holding the US low of 0.7115 so far.