Article Highlights

  • Australia reported 0.12 billion AUD trade deficit from 0.90 billion AUD surplus
  • Chinese HSBC services PMI down from 51.4 to 50.7
  • German factory orders to show 1.2% rebound?
  • ECB expected to implement additional easing measures
  • BOE to keep monetary policy unchanged for now
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The Australian dollar wiped out some of yesterday’s gains when the Land Down Under reported a trade deficit of 0.12 billion AUD instead of the estimated 0.40 billion AUD surplus. This was a huge drop from the previous month’s 0.90 billion AUD surplus, signaling that there may be trouble brewing in Australia’s export industry.

China’s HSBC services PMI also weighed on the Aussie, as the figure fell from 51.4 to 50.7 in May. This indicates that the industry had a slower pace of expansion during the month. AUD/USD tumbled to a low of .9255 in the past few hours before recovering to the .9280 area. AUD/JPY had a tougher time rebounding after dipping to a low of 94.93, yet it managed to climb back above the 95.00 handle.

The Kiwi seemed to regain its wings in today’s Asian trading session when a Westpac report hinted that the RBNZ could be surprisingly hawkish in this month’s rate statement. NZD/USD jumped up to the .8450 area from its previous lows near .8400.

The spotlight is now on the euro in today’s London trading session, as the ECB gears up to announce its rate decision. While Germany is set to print its factory orders data, euro pairs might be in for a bit of consolidation prior to the much-awaited ECB event. Also lined up for today is the BOE rate statement, but Governor Carney and his men aren’t expected to make huge monetary policy announcements.


U.S. Session Recap

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