FX Today: Aussie slips on weak Aus jobs, risk-off lifts Yen; SNB – Up next

The protests in Hong Kong over the extradition bill combined with rife US-China trade woes continued to hit the risk-sentiment in Asia for the second straight day. The renewed risk-aversion wave powered the Yen bulls, sending the USD/JPY pair to 108.15 region before recovering to 108.35 towards Asia close.

Meanwhile, the AUD/USD pair dropped to test the 0.6900 support after the Australian jobless rate ticked higher in May and bolstered July RBA rate cut hopes. Both the Kiwi and USD/CAD remained on the defensive amid a minor recovery in oil prices. Gold prices on Comex edged higher towards 1340 levels on falling Treasury yields, in the wake of the US CPI disappointment.

Among the European currency pairs, EUR/USD and Cable traded better bid amid a broadly subdued US dollar while the Swiss franc benefited slightly from the risk-off action in the Asian equities ahead of the Swiss National Bank (SNB) June monetary policy decision.

Main Topics in Asia

US Treasury Secretary Mnuchin: Would like debt ceiling to be part of budget deal

Huawei protests FCC actions to block it in the US on national security grounds – CNBC

The US seriously distorts market economy – China’s Global Times

Economists expect PBoC to cut to interest rates - China Daily

Banxico Deputy Gov Heath: Banxico cannot start easing cycle with so much risk

Australian labour market data (May): 42.3K headline Employment / 5.2% Unemployment vs 5.1%

China Vice-Premier Liu urges acceleration of reform of market access, IPR protection

China SAFE: China will steadily push forward with opening up of capital account

US Pres. Trump: “Biden would be China’s Dream Candidate, no more Tariffs, no more demands that China stop stealing our IP”

Indonesian FinMin Indrawati: Bank Indonesia may ease monetary policy, IDR trades weaker

Japan, Chinese leaders to meet June 27 before G20 – FNN

Key Focus Ahead

We have a busy EUR calendar for today, as markets align for the key Swiss events, including the Alpine nation’s Producer Price Index (PPI) data release (due at 0630 GMT) and the Swiss National Bank (SNB) June quarter Monetary Policy Assessment, dropping in at 0730 GMT. The SNB Press Conference by Chairman Thomas Jordan will be eyed at 0800 GMT for fresh hints on the interest rates outlook. From the Euroland, the industrial production data will be reported at 0900 GMT and will likely accentuate the Eurozone economic slowdown fears.

The NA session sees the US weekly jobless claims, the Import Price Index and Export Price Index releasing at 1230 GMT alongside the Canadian New Housing Price index data. Amid a data-light NA calendar, the US-China trade war-related updates and the first round of the UK Conservatives voting for the position of the UK Prime Minister will remain in the spotlight.

EUR/USD charts bearish outside day ahead of Eurozone industrial production

With a bearish candlestick pattern on the daily chart, the EUR/USD is on the defensive ahead of Eurozone's industrial production release. The pair will likely find acceptance below 1.1283 if the Eurozone data disappoints.

GBP/USD remains on the back foot, all eyes on Conservative voting

While the failure of Labour-led motion to block the chances of no-deal Brexit weakened the Pound, the GBP/USD pair remains on a back foot, as traders await the first round of voting to decide the new Tory leader later this Thursday.

USD/CHF: Buyers concentrate on 200-day SMA while waiting for SNB

USD/CHF’s recent recovery still falls beneath 200-day SMA as it takes the rounds near 0.9950, awaiting monetary policy decision and assessment from the Swiss National Bank (SNB) for fresh clues.

Brent technical analysis: Bearish lower highs favor a drop to fresh five-month low

With the sharp pullback from Tuesday’s high of $64.08, the black gold has established yet another bearish lower high. Notably, that is the third bearish lower high of the last six weeks and so the path of least resistance is to the downside.