Forex today in Asia this Tuesday was characterized by slowing volumes and minimal volatility amid holiday-thinned markets, with China still closed in observance of Labour Day. On the data front too, we had second-liner releases, which had little impact on the Asia-pac currencies, as the USD dynamics continued to play a vital role across the fx board.
Despite firmer USD and Treasury yields, the Antipodeans traded on the front foot. However, the Aussie remained little-moved by the Reserve Bank of Australia’s (RBA) status-quo. The Kiwi kept leaning on the crucial support of 0.7032 while USD/JPY advanced closer to the midpoint of the 109 handle.
Among other related markets, the Asian equities traded mostly higher while oil prices picked up some strength, following the overnight comments from the Israeli PM Netanyahu. Gold prices hovered near six-week lows amid increased nervousness ahead of the FOMC decision.
Main topics in Asia
BOJ maintains JGB buy amounts in regular operation for May
Heading into a new month, the Bank of Japan (BoJ) makes an announcement that it pledges to leave the Japanese Government Bond (JGBs) purchase amounts unchanged for the month of May, with the key details found below.
EU's Barnier pushing for rapid Irish border resolution - Reuters
As reported by Reuters, The European Union's head Brexit negotiator, Michel Barnier, is confident that a solution for the Irish border can be achieved if progress is made by June, but stipulated that there is still a risk of the UK leaving the EU without a firm deal in place.
US House to vote on Dodd-Frank changes in May - Reuters
According to reporting by Reuters, the US House of Representatives may be geared to vote as soon as May on a bill that will relax banking rules that were put in place after the 2007-2009 financial crisis.
US Trump postpones tariff decision until June
The White House is announcing that US President Trump has decided to postpone making a final decision on permanent exemptions on steel and aluminum tariffs for US allies until June 1st.
NZ FinMin: 2018 budget will deliver a surplus
New Zealand's Finance Minister Robertson has announced that New Zealand's government budget for 2018 will be delivering a surplus for fiscal year 2018.
White House now says Iran had a robust, clandestine nuclear weapons program
White House is out with the latest statement on Iran’s nuclear program, with a subtle revision in the wording, Reuters reports.
RBA steers rates on a steady course, as widely expected
The Reserve Bank of Australia (RBA) at its monetary policy meeting today, left the official cash rate (OCR) unadjusted at a record low of 1.50% for the nineteenth meeting in a row.
RBA: Housing markets have slowed in Sydney, Melbourne
Following are the key headlines from the RBA monetary policy statement (via Reuters) …
Key Focus ahead
Most major European markets are closed today in observance of Labor Day, leaving the EUR, GBP traders at the mercy of the dollar trades and risk trends. However, the UK manufacturing PMI and net lending to individuals data could provide some incentives to the GBP markets ahead of the scheduled speech by the RBA Governor Lowe.
Moving on, the NA session remains eventful, with the Canadian GDP on the cards, followed by the manufacturing PMI reports from Canada as well as the US. However, the US ISM manufacturing PMI will hog the limelight among other minority reports. Also, of relevance remains the NZ GDT price index, which could have a major impact on the Kiwi heading into the NZ jobs and China Caixin manufacturing PMI data slated for release on Wednesday early Asia.
EUR/USD has eyes on 1.20 ahead of US ISM, FOMC on the horizon
Tuesday promises to be a volume-thin day with the major European markets shuttered for Labor Day; institutional market participants will be missing from the action, but the Dollar side is still looking alive this week after the pair fell again on Monday, keeping the bearish pressure on the Euro.
GBP/USD: Bearish bias still intact ahead of UK PMI
Despite a minor bounce, the GBP/USD pair remains vulnerable and looks to breach the March low of 1.3712, as markets expect the UK manufacturing sector activity to decelerate in April.
EURJPY: Sell rallies toward 133.05
EURJPY traded quietly in the 350 pips' range last month. We see a potential Quarterly bearish outside bar. Price still failed to close above monthly Ichimoku cloud.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.