Forex news from the Asian trading session - 2 May 2018
Headlines:
- Trump reiterates "good (great)" relationship with Xi ahead of trade talks
- US embassy in Beijing says US delegation to meet Chinese officials later today and tomorrow
- Australia March trade balance +AUD 1,527m vs +AUD 865m expected
- Australia March building approvals +2.6% vs +1.0% m/m expected
- NZ's Ardern urges business to show confidence in the government
- Trump says to "stay tuned" as US looks to secure release of hostages held by North Korea
- New Zealand April ANZ commodity prices +1.0% vs +1.2% m/m prior
- CBA Australia PMI Services for April 55.2 vs. 55.6 last
- Sources: Pres. Trump has "all but decided" to end nuclear agreement w/ Iran
- AiG performances of services index for April, 55.2 versus 56.9 last month
- NZ Job advertisements -2.1% vs 0.5% revised last month
Markets:
- AUD leads, USD lags on the day
- Asian equities mostly lower, Hang Seng leading losses -1.66%
- Gold up by 0.3% to $1,308.82
- WTI down by 0.15% to $67.83
- US 10-year yields flat at 2.966%
- Bitcoin up by 0.9% to $9,260
The dollar fell after the Fed meeting yesterday, but recovered into the close in overnight trading. But that recovery was short-lived as the dollar is retracing back gains again today in Asian trading. The ranges are relatively decent considering the thin liquidity environment - Japan is off on holiday until next week.
No notable headlines of note to have impacted the greenback, just a retracement but there is US-China trade talks to come so possibly some hints of profit taking in case perhaps. There's also the US non-farm payrolls report due tomorrow to consider as well.
Apart from that, the aussie is the one leading the charge on the day helped by positive economic data. Trade balance figures posted a larger than expected surplus, and building approvals data beat estimates too. That sees AUD/USD up to highs of 0.7527 earlier, keeping above the 0.7500 figure level - where there is a large option expiry due today.
In the equities space, Asians stocks are mostly soggy with the Hang Seng being the worst performer on the session. There are jitters surrounding trade talks between US and China in Beijing but also the fact seems to be unwavering in its quest to hike rates this year adds some worries for stocks in general.
Looking ahead to the day, we'll have UK services PMI and Eurozone preliminary inflation figures as the key items to look out for in European trading so let's see how things play out.
