Online Forex Trading News

ASIA SUMMARY

After rallying in NY and London, the first order of business was to sell the JPY crosses as USD/JPY found resistance around 119 area. However, the macro picture remains favorable for the JPY crosses. With global equity markets strong, it appears that the market is comfortable to put risk back on in the form of carry trades.

The main focus of Asia was on Australia interest rates. We saw the Royal Bank of Australia keep rates unchanged after some speculation that they were going to increase rates with some estimating around a 60% chance. With the market positioned long, we saw AUD/USD sell off hard and, while it is off the lows, it has not been able to get back to levels before the announcement.

In London we have:

France: (3:50am EST) PMI Services survey expected 59.1 vs. previous 58.9.

Germany: (3:55am EST) PMI Services survey expected 57.4 vs. previous 57.2.

UK: Bank of England begins Monetary Policy meeting. (5:30am EST) PMI Services survey expected 57.5 vs. expected 57.4.