Asia FX Handover: The Bleeding Slows, RBA On Tap
Matt Simpson June 4, 2019 4:26 AM
A summary of news and snapshot of moves from today’s Asia session.
- 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.
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