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Major currencies were all over the charts today, as traders priced in both risk appetite and dollar strength.

  • AU NAB business confidence index inches up from 8 to 9 in June
  • AU home loans up by 1.0% in May vs. 1.5% expected, 1.9% decline in April
  • NZ credit card spending at 0.0% vs. 0.8% expected in June

Major Events/Reports:

Australia’s data releases

Data from the Land Down Under showed business confidence inching higher from 8 to an index reading of 9 in June while business conditions rose by 4 points to a multi-year high of 15.

According to the National Australia Bank (NAB), “wholesale, construction and manufacturing each drove most of the improvement in business conditions in June, but conditions are also looking quite solid across most industries and states, which suggest the recovery is becoming more entrenched.”

Meanwhile, Australia’s home loans gained by 1.0% in May after falling by 1.9% in April. But since this is only the second month since the APRA macro prudential tightening in March, analysts are taking the numbers with a bucket of salt.

Mixed price action for the dollar

With not a lot of major data on the docket, Asian session traders took cues from their U.S. counterparts and continued to push the dollar higher against the European and fellow low-yielding currencies.

It lost against the comdolls, though, thanks to a recovery in commodity prices.

Remember that the dollar has gained momentum since the better-than-expected NFP report printed last Friday. And with traders expecting Janet Yellen’s scheduled testimony to yield hawkish remarks, a lot of dollar bulls started positioning their biases.

Meanwhile the post-NFP optimism in Wall Street and improved demand for the dollar translated to gains for most of the Asian bourses.

  • Nikkei is up by 0.49% to 20,178.50
  • Australia’s A SX 200 is down slightly (-0.04%) to 5,722.30
  • Hang Seng is up by 1.02% to 25,759.00
  • Shanghai index is up by 0.87% to 11,496.32

Major Market Mover(s):

USD

The dollar gained against its fellow low-yielders and the European currencies but lost out to the comdolls.

EUR/USD is down by 6 pips (-0.05%) to 1.1394, USD/JPY is up by 9 pips (+0.08%) to 114.17, and USD/CHF is up by 9 pips (+0.09%) to .9665.

Watch Out For:

  • 6:00 am GMT: Japan’s preliminary machine tool orders
  • 8:00 am GMT: Italy’s industrial production (0.5% expected, -0.4% previous)