Forex Today: Aussie sold-off into weak fundamentals, UK retail sales and ECB – Key

A relatively busy Asian session, with plenty of event risks from the Asia-pac economies that disappointed markets and soured the risk sentiment. Both the Australian jobs report and Chinese data dump came in worse-than-expected, knocking-off the Aussie back towards the post-FOMC decision lows at 0.7530. However, the Kiwi was largely unaffected by dismal Chinese macro news, as broad-based US dollar weakness, following the Fed lift-off, continued to offer some support. Meanwhile, the USD/JPY pair suffered from dollar weakness and risk-off trades, having dropped back below the 200-DMA in a bit to test the 110 handle.

Both the EUR and GBP rallied heading into an eventful European session, as markets brace for the UK retail sales release and European Central Bank (ECB) monetary policy decision due later on Thursday.

Main topics in Asia

US President Trump: could have asked Putin direct questions if he was at G7

In an interview with Fox News, US President Donald Trump hit on a number of talking points regarding his stances on various US diplomatic scenarios currently at play.

Sarah Sandars, Raj Shah could be leaving the White House team this year - CBS News

Press secretary Sarah Sanders and principal deputy press secretary Raj Shah are both heading for the exits, according to sources inside the White House and close to the administration.

BoJ cuts operational purchases of 3-5 year maturity JGBs

The Bank of Japan (BoJ) has quasi-tapered their purchases of 3-5 year maturity Japanese Government Bonds (JGBs) in their easing operations.

Australia jobless rate ticked lower in May, full-time jobs slump

Australia unemployment rate ticked lower to 5.4 percent in May, even as the economy added only 12,000 jobs, the latest data published by Australia Bureau of Statistics (ABS) showed this Thursday. 

US Sec. of State Pompeo: ‘Will only be sanctions relief for N. Korea when we get complete denuclearization’

More comments flowing in from the US Secretary of State Pompeo, via Bloomberg, as he continues to speak in Seoul.  

China May data dump: Downbeat across all indicators

China’s May retail sales YoY, the number came in at 8.5% vs 9.6% exp and 9.4% last, with industrial output YoY at 6.8% and 6.9% exp and 7.0% last. 

PBOC unexpectedly leaves rates unchanged for reverse repos

The People's Bank of China (PBOC) unexpectedly left borrowing costs for interbank loans unchanged on Thursday, despite a 25 basis point Fed rate hike. 

HIBOR hits fresh decade high

The news is crossing the wires via Reuters that one-month Hong Kong Interbank Offered Rate (HIBOR) has risen to 1.60125 percent - the highest level since 2008.

Key Focus ahead

As mentioned above, the next market moving events for today remain the UK retail sales and ECB decision, with a no change in the interest rates already priced-in by the markets. However, any announcements on QE taper could trigger a fresh EUR rally across the board. Meanwhile, the UK retail sales data is likely to show a sharp decline in the month of May, with a 0.5% reading expected versus 1.6% previous. In the NA session, the ECB press conference and US retail sales report will hog the limelight among other minority reports.

EUR/USD is mildly bid despite hawkish Fed, Eyes ECB

The common currency could pick up a strong bid if the ECB discusses QE taper today. On the other hand, the common currency could run into offers if the ECB tapers the "taper talk".

GBP/USD trying to grind its way back to 1.34 ahead of UK and US Retail Sales double-header

The GBP is still lifting in early Asia trading for Thursday, and the GBP/USD is on a somewhat positive note heading into today's Retail Sales figures, though Wednesday's action did punch in a new recent low.

US Trump to decide on Chinese tariffs sometime on Thursday

US President Donald Trump is reportedly going to be making a decision on whether or not to impose tariffs on Chinese goods this Thursday.

US Retail Sales Preview: A tie-breaker after the Fed, but not for EUR/USD

The United States releases the Retail Sales report on Thursday, June 14th, at 12:30. The US economy is based on consumption. 

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