- Australia’s NAB business confidence up from 7 to 8 in June
- Japanese current account surplus widened from 0.13T JPY to 0.38T JPY
- BOJ Deputy Gov Nakaso reiterated need to achieve 2% inflation target ASAP
- German and French trade balance due today
- Swiss CPI and retail sales to show strong improvements?
- U.K. manufacturing production and Halifax HPI up for release
The Australian dollar got a bit of a boost in today’s Asian trading session, as the NAB business confidence index climbed from 7 to 8 in June, reflecting stronger optimism among businessmen. Also released today was the Japanese current account surplus, which widened from 0.13 trillion JPY to 0.38 trillion JPY, more than twice as much as the estimated 0.17 trillion JPY surplus.
AUD/USD has climbed 6 pips shy of the .9400 handle while AUD/JPY continued to consolidate around the 95.50 handle. NZD/USD is up roughly 40 pips as of this writing, with NZD/JPY holding on to a 28-pip gain from its session lows near 89.00.
Yen pairs made a bit of a bounce when BOJ Deputy Governor Nakaso emphasized the need to achieve their 2% inflation target as soon as possible. Perhaps some traders priced in the possibility of additional easing from the BOJ later on, leading to a bit of yen weakness.
In the next few hours, Germany and France are set to print their trade balance figures. Germany might show a smaller surplus of 15.7 billion EUR while France could print a larger deficit of 4.1 billion EUR, with weaker than expected results likely to push the euro lower. Also due today are the U.K. manufacturing production and Halifax HPI figures, both of which could allow the pound to extend its gains if the actual results beat expectations.
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
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