Talking Points:
- Yen falls, commodity-bloc FX gains as risk appetite recovers overnight
- New Zealand Dollar outperforms on fading RBNZ rate cut speculation
- G7 officials’ comments may help sentiment rebound into the week-end
The Japanese Yen underperformed in overnight trade as stocks advanced, weighing on the anti-risk currency. Not surprisingly, the sentiment-linked Australian and New Zealand Dollars traded higher alongside share prices.
The Kiwi outperformed as the island nation’s front-end bond yields pushed upward, hinting at ebbing RBNZ rate cut speculation. Indeed, a gauge of the priced-in 12-month outlook implied in OIS rates has moved to the least dovish in four months.
The overall risk appetite recovery likely reflects corrective flows after yesterday’s Fed-inspired selloff. Fears of imminent stimulus withdrawal swelled as traders digested unmistakably hawkish rhetoric within minutes from April’s FOMC meeting, pushing the MSCI Asia Pacific regional benchmark equity index to a monthly low.
Stock index futures are trading notably higher ahead of the opening bell in Europe, hinting the risk-on mood is aiming to carry through into the week-end. Sideline comments from a meeting of G7 finance ministers and central bank governors may help if officials hint at on-coming fiscal measures to boost sagging global growth as monetary efforts appear increasingly stretched.
What does retail traders’ buying and selling say about market trends? Find out here!
Asia Session
|
GMT |
CCY |
EVENT |
ACT |
EXP |
PREV |
|
22:45 |
NZD |
Net Migration SA (APR) |
5520 |
- |
5330 |
|
3:00 |
NZD |
Credit Card Spending (MoM) (APR) |
2.5% |
- |
-1.4% |
|
3:00 |
NZD |
Credit Card Spending (YoY) (APR) |
9.1% |
- |
4.8% |
|
5:00 |
JPY |
Nationwide Dept Sales (YoY) (APR) |
-3.8% |
- |
-2.9% |
|
5:00 |
JPY |
Tokyo Dept Store Sales (YoY) (APR) |
-1.5% |
- |
-1.1% |
European Session
|
GMT |
CCY |
EVENT |
EXP/ACT |
PREV |
IMPACT |
|
6:00 |
German PPI (MoM) (APR) |
0.1% (A) |
0.0% |
Medium |
|
|
6:00 |
German PPI (YoY) (APR) |
-3.1% (A) |
-3.1% |
Medium |
|
|
7:00 |
JPY |
Convenience Store Sales (YoY) (APR) |
- |
-0.1% |
Low |
|
8:00 |
ECB Current Account SA (MAR) |
- |
19.0b |
Low |
|
|
8:00 |
ECB Current Account NSA (MAR) |
- |
11.1b |
Low |
|
|
10:00 |
CBI Trends Total Orders (MAY) |
-13 |
-11 |
Low |
|
|
10:00 |
CBI Trends Selling Prices (MAY) |
- |
4 |
Low |
Critical Levels
|
CCY |
Supp 3 |
Supp 2 |
Supp 1 |
Pivot Point |
Res 1 |
Res 2 |
Res 3 |
|
1.1104 |
1.1154 |
1.1179 |
1.1204 |
1.1229 |
1.1254 |
1.1304 |
|
|
1.4410 |
1.4511 |
1.4561 |
1.4612 |
1.4662 |
1.4713 |
1.4814 |
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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