Forex Today: Aussie trips on dovish RBA minutes; eyes on UK wages, German ZEW

Forex today witnessed a quiet Asian affair amid a cautious risk tone, with most majors sticking to thin trading ranges while the US dollar attempted a tepid bounce broadly. The Asian stock markets traded mixed, as markets remained unnerved ahead of the key Eurozone and Chinese macro releases. Oil prices also traded on the back foot heading into the US weekly supply data release. Meanwhile, gold traded modestly flat near 1285, with the bias leaning towards the downside.

Amongst the G10 currencies, the AUD/USD pair was the worst performer, as the Aussie dollar incurred steep losses following the release of the RBA April meeting’s minutes that was widely read as dovish. Its OZ neighbor, the Kiwi, enjoyed some good two-way businesses, having tripped to near 0.6740 region on dovish remarks from the RBNZ Governor Orr before recovering to the familiar ranges around 0.6765 levels. The USD/JPY pair was stuck in 20-pips trading range near the 112 handle, with the JPY bulls unfazed by the BOJ Governor Kuroda’s willingness to ease the monetary policy further, if required. Both the Euro and the GBP remained confined within its recent trading ranges while the Loonie recovered losses and traded below the 1.34 handle.

Main Topics in Asia

Japan’s EcoMin Motegi: Already agreed on the FX (with US), frank and good trade talks

RBA minutes: Likelihood of near term rate hike is low, Aussie slips

Fed’s Rosengren: Not in favor of Fed using negative rates

China home prices ticked +0.6% higher in March

BOJ's Kuroda: ETF purchases are not aimed at stabilizing the stock market

BOJ’s Kuroda: Will consider additional easing if momentum towards 2% inflation is lost

Brent Technical Analysis: Bearish RSI divergence seen in 4H chart

USD/IDR: Indonesian Rupiah trades at 2-month highs ahead of Indonesian elections

RBNZ's Orr: NZD currently around "happy space", easing bias remains in place for now

Germany's Maas: No Brexit extension beyond October

Key Focus Ahead

The EUR calendar ahead remains relatively eventful, with the UK employment data and German ZEW survey to headline. The UK jobs and wage growth report will drop in at 0830 GMT and is expected to have a major impact on the GBP, given no fresh updates on the Brexit front. Meanwhile, the shared currency could be influenced by the German ZEW survey for April, with a rebound expected in the German economic sentiment.

In the NA session, the Canadian manufacturing sales will release at 1230 GMT, followed by the US capacity utilization and industrial figures due at 1315 GMT. Also, of note remains New Zealand’s GDT price index data that will be published around 1400 GMT.  Oil and Loonie traders will await the release of the US API weekly crude stocks data that is slated for release late-Tuesday at 2030 GMT. Meanwhile, the NZ inflation report will remain the key focus in the early Asian trading alongside the Indonesian Presidential elections.

EUR/USD: Drop in Greek 10-year yield to 13-year lows fails to put a bid under EUR, eyes on German ZEW

The shared currency is struggling to pick up a bid despite tighter Greek-German 10-year government bond yield spread. A better-than-expected German Zew survey, due at 09:00 GMT, could yield a sustained move above 1.1320. 

GBP/USD: 5-week old resistance-line in focus ahead of UK employment data

Traders may now concentrate on February month average earnings and unemployment rate from the UK, coupled with the British claimant count change for March, ahead of focusing on the US industrial production figure.

UK jobs report preview: With Brexit on the back burner, upbeat wages could lift the pound

The British labor market is doing quite well. The jobless rate dropped to 3.9% in January, with record employment. Wages grew at a satisfactory standard of 3.4%, including and excluding bonuses.

When are the Indonesian general elections and how could they affect USD/IDR?

The Indonesian general elections will be held on 17 April 2019. For the first time in the country's history, the president, the vice president, and members of the People's Consultative Assembly (MPR), will be elected on the same day with over 190 million eligible voters.

China GDP Preview: What you see is what you will get

China's annual gross domestic product (GDP) is expected to decline to 6.3% in the first quarter of 2019 from 6.4% in the final three months of 2018.  On the quarter it is projected to slide to 1.4% from 1.5%.

 

GMT
Event
Vol.
Actual
Consensus
Previous
Tuesday, Apr 16
08:30
 
3.9%
3.9%
08:30
 
20K
27K
08:30
 
 
2.9%
08:30
 
3.5%
3.4%
08:30
 
3.4%
3.4%
09:00
 
0.8
-3.6
09:00
 
8.0
11.1
09:00
 
0.30%
-1.38%
09:00
 
2.0%
-0.7%
09:00
 
1.2
-2.5
n/a
 
-0.5%
0.8%
12:30
 
0%
1%
12:30
 
 
$-8.8B
12:30
 
 
$28.4B
12:55
 
 
4.8%
12:55
 
 
0.1%
13:15
 
79.1%
79.1% Revised from 78.2%
13:15
 
0.2%
0.0% Revised from 0.1%
14:00
 
63
62
18:00
 
 
20:30
 
 
4.091M
22:45
 
1.7%
1.9%
22:45
 
0.3%
0.1%
23:50
 
¥372.2B
¥334.9B Revised from ¥339.0B
23:50
 
2.6%
-6.6% Revised from -6.7%

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD tumbles to weekly lows on disappointing PMI data

EUR/USD dropped below 1.1300 after Germany's Manufacturing PMI dropped to 44.5 points, below expectations and reflecting a deep contraction in the sector. Other PMIs are mostly weak as well. US retail sales are eyed.

EUR/USD News

GBP/USD bounces off 1.3000 on upbeat UK retail sales

GBP/USD escaped the 1.3000 line after UK retail sales beat with a jump of 1.1% in March, much better than expected. A risk-off mood weighed on it earlier. US retail sales are next.

GBP/USD News

USD/JPY: risk aversion likely to result in limited slides

April Japanese Nikkei Manufacturing PMI improved to 49.5 from 49.2, still in contraction territory. European data spurred demand for safe-haven assets amid renewed concerns of economic slowdown.

USD/JPY News

US Retail Sales Preview: Let the spending begin

Overall retail sales are predicted to rise 0.9% in March following February's 0.2% decline. Sales excluding automobiles are expected to climb 0.7% after falling 0.4% the prior month.

Read more

Gold: A dead cat bounce from 2019 lows?

Gold (futures on Comex) staged a sharp $4+ reversal last hour from fresh 2019 lows of 1273.05, as a sudden turnaround in the risk sentiment called on the gold bulls for rescue amid a resurgence of concerns over dwindling Eurozone economic growth.

Gold News

majors

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •