Currency Updates:
AUD/USD
• Pair hugs 200-HMA in Europe morning, sub-0.7920 pre-US jobs data
• Whippy post-data as algos take control, initial spike up, quickly erased
• USD bounces viciously & pair trades sub-0.7880, move reverses
• US yields dive & takes USD with them, 0.7968 high made
• Action settles & pair back near 200-HMA late in day
• Light Oz data next week, China CPI over w/e might impact Monday open
EUR/USD
• Choppy action into NFP, ~1.1210 pre-data, extremely whippy action post-data
• Miss on NFP & AHE see quick USD sell-off, pair spikes to 1.1290
• Counterintuitive USD move takes hold & spike gains erased, 1.1175/80 tested
• US yield slip intensifies & USD follows & EUR/USD towards 1.1280
• Remainder of day sees steady slide as USD drop abates
• Pair sub-100 DMA into w/e & threatening 10-DMA & May 7 low
USD/JPY
• USD/JPY’s rebound fm Thur’s lows was reversed by slightly soft Jobs data
• 120.24 high by the NFP print, followed by reversion to 10-DMA by 119.60
• Tsy yield drop overpowered the rebound in N225 futures
• EUR sales, as EA asset prices rebound/hedging subsides, hit EUR/JPY
• 100-DMA by 134.10 low, but O/B signals & re-risking flows dominate
• GBP/JPY yanked higher by shock UK vote result: 185 key on close
GBP/USD
• Cable held on to Tory election-related gains settled by 1.5410 ahead of US NFP
• NFP came in as f/c, revisions to NFP & weak avg earnings pushed GBP to 1.5355
• US yields settled lower by PM fix lifting GBP/USD to 1.5460 as NY session ends
• EUR/GBP moved lower as the focus shifts back to diverging outlook for EZ-UK
• Tory victory adds Brexit concerns to growing list of EZ woes
• EUR/GBP falls through daily cloud, hovers by 61.8% Fib by 0.7256
Looking Ahead – Economic Data (GMT)
• Sat 1:30 CN PPI YY Apr f/c -4.4%, -4.60%-prev
• Sat 1:30 CN CPI YY Apr f/c 1.6%, 1.40%-prev
• Sat 1:30 CN CPI MM Apr f/c 0%, -0.50%-prev
• 1:30 AU NAB Bus Conditions Apr 6-prev
• 1:30 AU NAB Bus Confidence Apr 3-prev
• : CN M2 Money Supply YY Apr f/c 11.9%, 11.60%-prev
• : CN New Yuan Loans Apr f/c 903.0b,1180.0b-prev
• : CN Outstanding Loan Growth Apr f/c 14%, 14.00%-prev
Looking Ahead – Events, Other Releases (GMT)
• No Significant Events
