Global Markets:
- Asian stock markets: Nikkei down 1.50 %, Shanghai Composite fell 0.25 %, Hang Seng lost 0.20 %, ASX 200 down 2.00 %
- Commodities: Gold at $1282 (-0.30 %), Silver at $17.32 (-0.70 %), WTI Oil at $48.35 (-1.10 %), Brent Oil at $49.85 (-1.00 %)
- Rates: US 10 year yield at 1.62, UK 10 year yield at 1.21, German 10 year yield at 0.02
News & Data:
- Australia Credit Card Purchases (AUD) Apr: 23.5B (prev. 25.5B)
- Australia NAB Business Conditions May: 10 (rev prev. 10 from 9)
- Australia NAB Business Confidence May:3 (prev. 5)
- New Zealand Food Prices (MoM) May: -0.5% (prev. 0.30%)
- Japan FinMin Aso: Will respond to FX market as needed
- Aso: Stable FX rates are desirable, do not want abrupt moves
- YouGov & The Times EU referendum voting intention: Remain 39%, Leave 46%, Don't know 11%
Markets Update:
GBP/USD came under renewed pressure after a new poll showed that 46 % would vote for the UK to leave the EU, while only 39 % would vote for it to stay. The pair declined from 1.4265 to 1.4220 after the poll was released and extended losses to 1.4180 later in the session. Support is now seen at 1.4120.
EUR/USD rose steadily during the past 24 hours and is now approaching the 1.13 level. Resistance is seen at 1.1320 and 1.1380. USD/JPY failed to gather momentum after it bounced off 105.80 support and the topside was capped at 106.60 yesterday. In Asia, it fell from 106.40 to 105.95. Below 105.80, support is noted at 105.50 and 105.20.
AUD/USD is holding relatively well despite broad USD strength. It fell to 0.7375 in the early Asian session, but bounced from there and rose to 0.74 later in the session. Meanwhile, NZD/USD extended losses and fell to 0.7020.
Upcoming Events:
- 08:15 BST – Swiss CPI
- 09:30 BST – UK CPI
- 13:30 BST – US Retail Sales
- 21:35 BST – US API Weekly Crude Oil Stock
- 23:45 BST – New Zealand Current Account
