USD Trading Outlook (21-06-2013)

The big flight by speculative players into the USD continued almost unabated overnight although some pairs, USD/JPY in particular, have reversed quite sharply from interim highs. AUD/USD traded to lows near .9165 as risk-off sentiment and USD-bullishness hit the pair with a double-whammy.

Today’s economic calendar looks relatively bare, with a speech by the BOJ Governor providing the only high point. The market will continue to watch the short-term Chinese funding market which rose sharply yesterday as the PBOC continued to hold back on providing additional funds to the market. The main reason they do this is to try and slow down speculation in the property market in particular.