25 Jun 2015
Aussie bulls take control in Asia, Greece & a host of US data – In focusAussie bulls take control in Asia, Greece & a host of US data – In focus
FXStreet (Mumbai) - The Antipodean currencies took over the reins in Asia, flying higher across the FX space. The Aussie was the biggest gainer extending gains beyond 0.7700 levels. While the New Zealand neighbor also followed suit, strongly bid above 0.69 handle. The Japanese yen rebounded sharply from weekly lows versus the US dollar, now keeping gains around 123.60.
Key headlines in Asia
No deal on Greece, Tsipras and Juncker to meet again
Key events ahead and Greek negotiations continue - Westpac
Dominating themes in Asia - centered on JPY, AUD, NZD
A completely eventless Asian session, with broad based US dollar weakness boosting most G10 currencies. Among Asian stocks, Australia’s benchmark ASX extended weakness and traded -0.63% lower at 5650. While Nikkei also traded in red below 20800, losing -0.36% on the day with Greece uncertainty hampering on investors’ moods.
The bid tone in AUD/USD heightened this session as fresh demand for AUD emerged as the Aussie remained supported above 0.77 handle. While the kiwi extended its recovery mode from fresh five year lows and traded firmly above 0.69 handle as markets viewed the sell-off as overdone and lifted NZD/USD ahead of crucial NZ trade balance data.
The dollar-yen pair witnessed a sharp drop of nearly 40 pips as the yen received some support from ongoing Greece uncertainties as the Euro group meets for the third time this week to seek a solution on Greek debt obligations.
Heading into Europe - centered on EUR, GBP
A data-dry European session ahead, with GfK German consumer climate the only data to watch out for. While SNB Chairman Jordan’s is due to speak at the General Assembly of the Federation of the Swiss Watch Industry, in Lausanne.
While Euro group meeting alongside EU Summit will be monitored for fresh Greece updates. Wednesday night's emergency meeting between Greece and its international creditors ended with a fiasco early Thursday, with the nation's Prime Minister Alexis Tsipras leaving the venue without talking to reporters. Still, the talks between technical experts are set to continue later in the day.
Later in the North American session, traders await the price index for Personal Consumption Expenditures (PCE) - the benchmark measure of inflation used by the Fed.
The core version, which excludes the volatile food & energy categories, has not risen more than 0.1% on a monthly basis since June 2014. During this period, y/y pace of core inflation slipped to just 1.2% from 1.5%.
While, weekly jobless claims, personal spending and services PMI will also be closely watched as Fed official Powell delivers a speech at the Federal Reserve Bank of Kansas City.
Technical Outlook
The technical strategy team at Barclays Capital
provides technical outlook,
“EUR/USD: Our bearish view was endorsed by the initial break below our downside targets near 1.1150. We now look for further downside towards the 1.1050 area and then the 1.0815 May lows. Our greater downside targets are at the 1.0460 year-to-date lows.”
“GBP/USD: We are neutral in the short term as investors lock in profits from the June rally and price dips within range. Risk is seen towards 1.5640, possibly 1.5550, before a base can form. Overall we are bullish towards 1.6000 and then targets near 1.6200.”
Key headlines in Asia
No deal on Greece, Tsipras and Juncker to meet again
Key events ahead and Greek negotiations continue - Westpac
Dominating themes in Asia - centered on JPY, AUD, NZD
A completely eventless Asian session, with broad based US dollar weakness boosting most G10 currencies. Among Asian stocks, Australia’s benchmark ASX extended weakness and traded -0.63% lower at 5650. While Nikkei also traded in red below 20800, losing -0.36% on the day with Greece uncertainty hampering on investors’ moods.
The bid tone in AUD/USD heightened this session as fresh demand for AUD emerged as the Aussie remained supported above 0.77 handle. While the kiwi extended its recovery mode from fresh five year lows and traded firmly above 0.69 handle as markets viewed the sell-off as overdone and lifted NZD/USD ahead of crucial NZ trade balance data.
The dollar-yen pair witnessed a sharp drop of nearly 40 pips as the yen received some support from ongoing Greece uncertainties as the Euro group meets for the third time this week to seek a solution on Greek debt obligations.
Heading into Europe - centered on EUR, GBP
A data-dry European session ahead, with GfK German consumer climate the only data to watch out for. While SNB Chairman Jordan’s is due to speak at the General Assembly of the Federation of the Swiss Watch Industry, in Lausanne.
While Euro group meeting alongside EU Summit will be monitored for fresh Greece updates. Wednesday night's emergency meeting between Greece and its international creditors ended with a fiasco early Thursday, with the nation's Prime Minister Alexis Tsipras leaving the venue without talking to reporters. Still, the talks between technical experts are set to continue later in the day.
Later in the North American session, traders await the price index for Personal Consumption Expenditures (PCE) - the benchmark measure of inflation used by the Fed.
The core version, which excludes the volatile food & energy categories, has not risen more than 0.1% on a monthly basis since June 2014. During this period, y/y pace of core inflation slipped to just 1.2% from 1.5%.
While, weekly jobless claims, personal spending and services PMI will also be closely watched as Fed official Powell delivers a speech at the Federal Reserve Bank of Kansas City.
Technical Outlook
The technical strategy team at Barclays Capital
provides technical outlook,
“EUR/USD: Our bearish view was endorsed by the initial break below our downside targets near 1.1150. We now look for further downside towards the 1.1050 area and then the 1.0815 May lows. Our greater downside targets are at the 1.0460 year-to-date lows.”
“GBP/USD: We are neutral in the short term as investors lock in profits from the June rally and price dips within range. Risk is seen towards 1.5640, possibly 1.5550, before a base can form. Overall we are bullish towards 1.6000 and then targets near 1.6200.”