Asian Session Recap – June 4, 2014

  • Australian economy grew by 1.1% in Q1 2014 vs. 0.9% estimate
  • New Zealand ANZ commodity prices down by 2.2%
  • Spanish and Italian services PMI due
  • U.K. to report weaker expansion in services sector?

For the third day in a row, the Australian dollar stole the spotlight as it spiked around after the release of Australia’s quarterly GDP report. It showed that the economy grew by a stronger than expected 1.1% in the first quarter versus the estimated 0.9% uptick. AUD/USD spiked to a high of .9299 moments after the release before sinking back down to the .9270 area.

As for New Zealand, ANZ commodity prices showed a 2.2% decline for May, following the previous 3.7% drop. This marked the third consecutive monthly decline in commodity prices, spurred mostly by lower prices in the dairy sector. NZD/USD edged close to the .8400 handle in the past few trading hours while NZD/JPY dipped to a low of 86.32.

Yen pairs leveled off their latest rallies, as EUR/JPY retreated below the 140.00 mark while GBP/JPY moved sideways at 171.50. The Nikkei posted a small 0.22% gain for the day, but not after dipping to fresh session lows when risk appetite waned.

In the next few hours, we’ll get Spanish and Italian services PMIs, along with the euro zone final services PMI for May. Also on today’s docket is the U.K. services PMI, which could be a big mover for the pound since the services sector accounts for majority of the U.K.’s overall economic activity. The reading is slated to dip from 58.7 to 58.3 in May.

 

U.S. Session Recap

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