Currency Updates:
AUD/USD
• Gains from China RRR cut fade in Europe due to USD’s bid
• Sub-0.7780 into NY open, slide persisted despite Dudley comments
• Stevens’ AUD & rate tips sink pair sharply, 55-DMA & cloud base pierced
• Bids into 0.7700 & 21-DMA prevent further losses, 0.7706 low hit
• RBA meeting minutes the risk in Asia, likely to be dovish
EUR/USD
• Under pressure in Europe’s morning as USD sees broad based bid
• Early NY sees dip near 1.0710, but dip bought, lifts near 1.0770
• Rally ignited by Dudley’s tip to rate hike timing being data dependent
• Spec offers cap rally & gains erode as USD & US yield lifts resume
• Near 1.0720 late in day, choppy range likely Tues as little data/event risk
USD/JPY
• USDJPY drifts modestly higher with US, Euro stocks
• Bears sold last week’s trendline break; lean against 119.50
• Markets very quiet absent meaningful US data until Friday
• Nikkei futures underperform on day; 20k cap for now
• Key reversal down in Shanghai; Asian stocks toppy
Looking Ahead – Economic Data (GMT)
• No Significant Data
Looking Ahead – Events, Other Releases (GMT)
• 01:30 RBA to release the minutes of its April policy meeting
