Asia FX Handover - A Minor Risk Rally For FX
Matt Simpson May 13, 2019 11:45 PM
A summary of news and snapshot of moves from today’s Asia session.
- Trump announced he’ll meet with Xi next month and said “we’ll know in 3-4 weeks if China trade deal is to be successful”, which saw a mini-bout of risk-on for FX markets. JPY is today’s weakest major and NZD and AUD are the strongest, allowing NZD/JPY and AUD/JPY to bounce from their lows and place them as today’s biggest gainers.
- On the data front, Australia’s business confidence came in at ‘0’ and April’s read was revised lower to -1, with conditions falling to its lowest level this year at 3. Most importantly, the employment component fell below average for the first time since 2016 ahead of Thursday’s all-important employment set. With employment remaining the stronger economic read, any weakness here will surely increase the odds of RBA cutting.
BOJ’s Kuroda expects rates to stay in place beyond spring 2020, but will consider further easing if price momentum is lost.
- US10Y has found support above 2.4%, index futures point cautiously higher and gold has retreated below $1300 after hitting a 1-month high. USD/CNH has also retraced below resistance after its most bullish session since October. All in these moves appear to be technically driven and too soon to call a turnaround.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.