Forex news from the Asian trading session - 1 May 2018
Headlines:
- Singapore PM sees economic growth of 1.5% to 3.5% this year
- White House revises wording in statement on Iran's nuclear program
- BOJ leaves bond purchase amounts unchanged in regular operation
- Further signs of cooling in the Australian housing market
- Mike Pompeo says US is to work diligently to "fix" Iran nuclear deal
- Japan April final Nikkei manufacturing PMI 53.8 vs 53.3 prelim
- South Korea trade balance $6.6 billion, estimate $8.5 billion
- Trump postpones steel tariff decision for EU, other US allies until June 1. USDJPY, EURJPY making a little move...
- Australia ANZ/Roy Morgan weekly consumer confidence index 119.2 vs 118.4
- WH: Israel's information provides new and compelling evidence about Iran's efforts to develop nuclear weapons
- CBA Australia April PMI manufacturing 55.5 vs 54.3 last month
- New Zealand building permits for March 14.7% versus 5.7% last month
- Australia's Trade Minister Ciobo says confident they have an exemption from US tariffs
- Australia's AiG April Performance of Manufacturing Index 58.3 vs. 63.1 last month
- NZ Finance Minister Robertson says budget for 2018 will "deliver a surplus". NZDUSD trades to new lows for the year.
- Welcome to May: Here is how the FX market performed in April
Markets:
- AUD leads, CHF lags on the day
- Nikkei +0.11% in narrow trading
- Gold down by 0.21% to $1,312.55
- WTI up by 0.34% to $68.80
- US 10-year yields flat at 2.953%
- Bitcoin down by 3.72% to $8,930
Japanese traders are back today, but not really it seems. Thursday and Friday are holidays in Japan too so it wouldn't be surprising that many traders are still away and with Chinese markets closed, liquidity has been thin to say the least.
Markets are barely moving, not just in FX but in equities and bonds as well. Looking at the ranges for the currency pairs today, it has largely been a snooze fest. And with major European markets also closed later today in observance of Labour Day, I wouldn't be surprised if this mood carries on until the US session.
The AUD is a little higher heading into the RBA cash rate decision at the bottom of the hour, but ranges remain very narrow on the day so I don't think you can look too much into that. AUD/USD is sitting near the highs for the day but sits in a 16 pips range.
With EUR/USD sitting in a 11 pips range on the day, it basically tells you how majority of the session went.
Expect things to pick up later in the day when US traders come in, especially when things are heating up between the US and Iran after statements from the White House and Pompeo earlier. The White House even made a subtle but very notable change in its statement regarding Iran here.
While I don't expect fireworks to come from the geopolitical escalation here, it still is going to be one of the key talking points in the week ahead as we approach the 12 May deadline.
