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Major currencies were all over the place as forex traders priced in mixed risk sentiment ahead of a potentially volatile week.

  • New Zealand GDT auction yielded 0.2% rebound in dairy prices
  • U.S. TIC long-term transactions jumps from $9.7B to $91.9B in May
  • AU Westpac-MI leading index slips by 0.1% vs. 0.0% reading in May
  • Reuters Tankan manufacturing index remains at 26 in July
  • Reuters Tankan services index unchanged at 33 in July

Major Events/Reports:

Australia’s leading inflation index

Data from the Land Down Under saw a leading indicator for inflation slip for the month of May.

Westpac-MI Leading Index, an index that measures 8 specific indicators from home and abroad, evaluates how the economy is likely to perform looking three to nine months in the future.

The index saw a 0.1% dip in June, which is a disappointment from May’s 0.0% reading. Westpac noted that two components accounted for all of the reversal in the index since the start of the year: lower commodity prices for Australia’s key commodity exports and a flattening in global yield curves.

But this is only the first indicator. If other reports reflect the same pattern for June, then you can bet that the RBA is bound to pay closer attention.

Mixed dollar price action

A lack of new major catalysts inspired mixed price action for the Greenback. If you recall, the low-yielding currency struggled across the board on concerns that the failure to repeal Obamacare would translate to even more delays to Trump’s tax reform plans.

The dollar recouped some of its losses against the European and its fellow low-yielding currencies, but continued to lose out to its commodity-related counterparts.

  • Nikkei is up by 0.02% to 20,004.00
  • Nikkei is up by 0.02% to 20,004.00
  • Hang Seng is up by 0.46% to 26,648.00 and
  • Shanghai index is up by 0.83% to 11,834.43.

Major Market Mover(s):

USD

The Greenback managed to regain some of its losses from the previous trading sessions though there was no momentum during the light trading session.

EUR/USD is down by 19 pips (-0.16%) to 1.1539, USD/JPY inched 3 pips higher (+0.02%) to 112.04, USD/CHF shot up by 8 pips (+0.08%) to .9555, and GBP/USD dipped by 14 pips (-0.11%) to 1.3032.

AUD and NZD

High-yielding currencies like the Aussie and Kiwi benefited from a one-two punch of positive trading sentiment from China and an improvement in commodity prices.

AUD/USD is up by 7 pips (+0.09%) to .7926, AUD/JPY is up by 10 pips (+0.11%) to 88.80, NZD/USD is up by 6 pips (+0.08%) to .7349, and NZD/JPY recovered from a low of 82.23 to trade at 82.34.

Watch Out For:

  • No major reports scheduled for release, but keep an eye out for possible extensions of existing market themes!