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 |
EUR |
German PPI (YoY) (APR) |
-3.1% (A) |
-3.1% |
Medium |
7:00 |
JPY |
Convenience Store Sales (YoY) (APR) |
- |
-0.1% |
Low |
8:00 |
EUR |
ECB Current Account SA (MAR) |
- |
19.0b |
Low |
8:00 |
EUR |
ECB Current Account NSA (MAR) |
- |
11.1b |
Low |
10:00 |
CBI Trends Total Orders (MAY) |
-13 |
-11 |
Low |
|
10:00 |
GBP |
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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