- AU NAB business conditions up from 9 to 10
- AU NAB business confidence slips from 5 to 3 in May
- Japan’s industrial production revised higher from 0.3% to 0.5% vs. 0.4% expected
Risk aversion still dominated the Asian session, as forex traders continued to tread lightly ahead of the Brexit vote and this week’s major events.
Brexit concerns – The Asian session traders caught up to their European and U.S. counterparts, this time pricing in even more polls reflecting the improved odds of a Brexit. The uncertainty surrounding a Brexit as well as the overall concerns for global growth dragged the high-yielding investments lower.
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Australia’s business confidence – Aside from the pound, the Aussie saw the most action during the Asian session. Data from the Land Down Under reflected mixed numbers with business confidence slipping but business conditions inching higher in May. The Aussie caught a few pips across the board before profit-taking took it back near to near its pre-report levels.
Major Market Movers:
GBP – Thanks to better prospects for a Brexit, the pound ended the early Asian session on a weak note.
GBP/USD is down by 50 pips (-0.35%), GBP/JPY is down by 74 pips (-0.49%), and EUR/GBP is up by 25 pips (+0.32%).
AUD – The Aussie caught nice spike following the release of Australia’s better-than-expected business confidence report, but soon lost most of the move on a bit of profit-taking and overall risk aversion.
AUD/USD hit a high of .7400 before settling back down to .7389, AUD/JPY shot up to 78.57 before going back to 78.36, and EUR/AUD fell to 1.5268 before shooting back up to 1.5283.
- 8:15 am GMT: Switzerland’s PPI (0.1% expected vs. 0.3% previous)
- 9:30 am GMT: U.K.’s CPI (y/y) 0.4% expected vs. 0.3% in April. Core CPI is expected at 1.3% vs. 1.2% previous. Read Forex Gump’s watchlist for tips on how to trade this one!
- 9:30 am GMT: U.K.’s PPI input expected to remain at 0.9%, PPI output is expected to slip from 0.4% to 0.3%.
- 10:00 am GMT: Euro Zone’s quarterly employment change (0.2% expected vs. 0.3% previous)
- 10:00 am GMT: Euro Zone’s industrial production (0.7% vs. -0.8% previous)
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!