Forex news for Asia-Pac trading on June 7, 2016:
- New YouGov poll shows 'remain' with a one point lead
- Japan sells 30-year bonds record low yield
- New Zealand Treasury says 2016 inflation may be more than forecast
- Japanese fin min says he won't comment on possible response to yen gains
- PBOC sets yuan mid-point at 6.5618 vs yesterday at 6.5642
- Hillary Clinton has enough delegates to clinch nomination
- May Australia AiG performance of construction index 46.7 vs 50.8 prior
- UK BRC sales +0.5% vs +0.3% exp
- New Zealand - ANZ May Truckometer: -1.7% m/m (prior -2.4%)
Markets:
- Nikkei up 0.66% to 16689
- WTI crude down 14 cents to $49.55
- Gold down $2 to $1243
- GBP leads, JPY lags
It took awhile but a poll showing a tighter Brexit race gave the pound a boost. It slowly rose to 1.4476 from 1.4440 at the start of Asia-Pacific trading and is at a session high and has also broken Monday's highs.
USD/JPY has had a solid bid and continued to edge up to 107.80 from 107.55 at the start of trading. Risk sentiment is positive and the gains threaten the 61.8% retracement of the NFP fall, which sits at 108.01.
The euro has traded in a 16 pip range from 1.1350 to 1.1366 and has totally lacked inspiration.
New Zealand returned after a holiday and there has been some appetite to sell the kiwi and it has slipped down to 0.6906. The big figure briefly gave way despite an optimistic Treasury report.
AUD/USD is the star of the show today but it's still waiting in the wings for the curtain to rise. The RBA is at the bottom of the hour and the market is pricing a 10% chance of another surprise cut. The range so far is 0.7360 to 0.7378.
