Market News & Analysis
Asia FX Handover: Mild Risk Off As Trade Headlines Dwindle
Matt Simpson June 12, 2019 5:38 AM
- The Hang Seng led Asian equities lower due to the extradition protest, with reports now flowing in that the government has postponed their vote. Gold is back above $1300 after yesterday’s doji. WTI back below $53 as the daily chart tries to carve out a top.
- It’s a narrow-ranged day for FX overall, although there’s a slight bid for safe havens to see CHF and JPY are the strongest majors, whilst NZD and AUD are the weakest. AUD/USD is testing yesterday’s lows on weaker consumer sentiment, although currently testing its daily retracement line.
- Japan’s machinery tool orders rose 5.2% in May to beat expectations of -5.3% and drag the YoY rate up to 2.5%. Yet sceptics point out it is masking a drop in the investment outloook, and doubt these expansive numbers can be maintained.
- No headline surprises in China’s CPI or PPI data, with inflation remaining stagnant at 0% in May, 2.7% YoY and producer prices rising 0.6% YoY all as expected.
- Australian consumer sentiment dipped by 0.6% in June after a run of disapointing data overshadowed this month’s RBA cut. This is in stark contracts to business sentiment which jumped to its highest level since September.
Today's Key Levels for FX Markets:
Daily Forex Technical Trend Bias/Key Levels (Wed 12 Jun)
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.