Asia FX Handover: The Bleeding Slows, RBA On Tap
Matt Simpson June 3, 2019 11:26 PM
- After a volatile US session, currency markets traded in tight ranges ahead of today’s RBA meeting EUR and JPY are the strongest majors and NZD is the weakest, although hard to read too much into given the lack of trading volumes.
- Bitcoin cracked $8,000 after plummeting over 8% earlier in the session. Yields have lifted slightly from their very bearish lows, although the moves appear technically driven with no real catalyst on hand.
- Asian share markets tracked Wall Street lower with most index futures also in the red. Gold and Silver remain supported near yesterday’s highs, WTI holds on to $53 after printing a less volatile bearish day.
- On Trade talks, the Washington Post reports that Congressional Republicans are discussing ways to stop Trump’s tariffs on Mexico. Mexico said they’ll reject a US idea to take in all Central American asylum seekers, if raised during talks this week. Meanwhile, the US have accused China of playing a ‘blame game’ in their recent public statements.
- South Korean growth was revised lower to 1.7% YoY and -0.4% QoQ, raising calls for a rate cut. With forward indicators pointing towards slower growth ahead, it doesn’t bode well for a pick-up with global growth.
- Australia’s current account deficit shrank to its narrowest level since 1997, although retail sales missed expectations. Yet its today’s RBA meeting within the next hour that AUD traders are waiting for.
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.