- CA housing starts at 198,300 in May vs. 185,000 expected
- China cuts RRR by 50 basis points for select banks
Forex action from early London trading failed to translate to price movement during the U.S. trading session as a lack of reports inspired thin trading among the major currencies.
The European currencies gave up most of their early London trading losses after the U.S. yields showed some steam and encouraged risk-taking. EUR/USD found a bottom at 1.3582 before closing at 1.3590 while GBP/USD found support at 1.6784 before closing at 1.6795.
The comdolls also gained a few pips on the Greenback as after China cut its reserve requirement ratio (RRR) for some banks to boost lending. Starting on June 16, the People’s Bank of China (PBoC) would implement a 50-basis-point reduction in RRR for some small banks that have substantial loans to the farming sector and the small and medium-sized firms. This is the second time since April that the PBoC has targeted the RRR of small banks.
AUD/USD rose from its session lows of 1.9336 to close at 1.9354 and USD/CAD ended the session with a 10-pip gain at 1.0909. Meanwhile, positioning ahead of the RBNZ monetary policy decision weighed on the Kiwi with NZD/USD sliding by 26 pips throughout the session to .8488.
Aside from the U.K.’s BRC retail sales monitor and a couple of tier 2 data from Japan released earlier, we’ll also see Australia’s NAB business confidence, ANZ job ads and home loans around 1:30 am GMT. At the same time, we’ll also see China’s annualized inflation numbers for the month of May.
Watch your charts closely to see how traders react to these potential market movers!
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Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!