- Australia’s May CB leading index posted 0.2% rebound, -0.3% previous
- ANZ reported another 0.6% decline in New Zealand job ads
- Iran ready to ship 2 million barrels of oil to Asia
Is risk appetite back on or are sellers just taking a break? Higher-yielding currencies are taking advantage of today’s relatively calm Asian trading session to patch up their recent forex wounds. The only reports released in the past few hours were Australia’s May CB leading index, which indicated a 0.2% rebound from the previous 0.3% slide, and ANZ’s job ads report for New Zealand, which printed another 0.6% decline.
AUD/USD is up 8 pips and is holding steady around .7400 (+0.09%) while NZD/USD is up 29 pips (+0.46%). Yen pairs are also starting to advance, with AUD/JPY up by 11 pips (+0.11%) and NZD/JPY up by 3o pips (+0.36%).
The Loonie is taking an early hit, though, thanks to news that Iran is ready to ship 2 million barrels of oil to Asia now that the economic sanctions have been lifted. Apparently, a huge tanker has been waiting for the green light for quite some time and is the first of Iran’s huge vessels of oil shipments. This could mean a huge increase in oil supply, which might then weigh on prices and the positively correlated Canadian dollar.
USD/CAD broke above its short-term forex consolidation earlier on in the trading session and reached a high of 1.2975 while CAD/JPY is still holding steady around 95.75. Loonie crosses are breaking higher, with GBP/CAD up 30 pips (+0.15%) and EUR/CAD higher by 33 pips (+0.23%).
Up ahead, the forex coast is clear in terms of top-tier economic reports, as the next batch of red flag events won’t take place until the U.S. trading session. Euro pairs might still be able to gain volatility from updates surrounding the Greek debt situation, as the German parliament is set to vote on the latest bailout and reform proposal. If this goes by without a hitch, Greece could move closer to securing the next batch of funds and staying in the euro zone. Keep your eyes peeled for more updates!
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