Asia FX Handover: Mild Risk Off As Trade Headlines Dwindle

The Hang Seng led Asian equities lower due to the extradition protest, with reports now flowing that the government has postponed their vote. Gold is back above $1300 after yesterday’s doji. WTI back below $53 as the daily chart tries to carve out a top.
It’s a narrow-ranged dar for FX overall, although there’s a slight bid for safe havens to see CHF and JPY are the strongest majors, whilst NZD and AUD are the weakest. AUD/USD is testing yesterday’s lows on weaker consumer sentiment, although currently testing its daily retracement line.
Japan’s machinery tool orders rose 5.2% in May to beat expectations of -5.3% and drag the YoY rate up to 2.5%. Yet sceptics point out it is masking a drop in the investment outloook, and doubt these expansive numbers can be maintained.
No headline surprises in China’s CPI or PPI data, with inflation remaining stagnant at 0% in May, 2.7% YoY and producer prices rising 0.6% YoY all as expected.
Australian consumer sentiment dipped by 0.6% in June after a run of disapointing data overshadowed this month’s RBA cut. This is in stark contracts to business sentiment which jumped to its highest level since September.

Matt Simpson, CFTe, MSTA CityIndex

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Matt Simpson, CFTe, MSTA

CityIndex

Matt Simpson is a certified technical analyst who combines charts and fundamentals to generate trading themes.

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