Asian Session Recap – July 2, 2014

  • New Zealand ANZ commodity prices down by 0.9%
  • Moody’s forecasts Australian private capital expenditure to fall
  • Australia released wider than expected trade deficit of 1.91 billion AUD
  • U.K. Nationwide HPI and construction PMI due

Looks like the dollar bears went in hiding for today’s Asian trading session! EUR/USD retreated from a high of 1.3699 to a low of 1.3665, GBP/USD dipped to a low of 1.7138, and USD/JPY bounced up to 101.64.

Commodity currencies also returned some of their recent gains after ANZ reported a 0.9% drop in New Zealand’s commodity prices for June. Australia released a wider than expected trade deficit of 1.91 billion AUD versus the estimated 0.61 billion AUD shortfall and the previous month’s 0.78 billion AUD deficit, which was already a downgrade from the initially reported 0.12 billion AUD deficit. It didn’t help that Moody’s credit rating agency released a report projecting Australia’s private capital expenditure to decline in the next 12 to 18 months.

AUD/USD fell from a high of .9503 to a low of .9449 while NZD/USD hit a low of .8747. Against the yen, these currencies also chalked up losses, as AUD/JPY fell back to the 96.00 levels and NZD/JPY retreated below the 89.00 handle.

For this London trading session, the U.K. is set to print its Nationwide HPI and construction PMI, with stronger than expected results likely to drive the pound higher. Also due today is the Spanish unemployment change report, which might push euro pairs around.

See also:

U.S. Session Recap

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