Forex news for Asia trading Wednesday June 3, 2020
There was a weakness in the USD roughly across the main FX table here
during the Asia session, the Australian dollar being a star artist.
Significant AUD / JPY purchases were seen from Japan at the start of the play, causing
the cross on 75.70 briefly and AUD / USD above 0.6980 for huge gains.
There was a setback during the update. EUR,
GBP, NZD and CAD all followed a similar path, higher than some declines.
the flow was light but we had some data. PMIs are not very notable
from Australia, both horrible and similar from Japan.
The Chinese services PMI jumped by more than 10 points.
more attention from Australia today was the building approval data for
April, not as bad as expected, and the first quarter GDP report, not
bad as expected. Building approvals should languish in the
months to come, however. And when it comes to GDP, while Q1 was not as bad as expected, Q2 will be much, much worse than Q1, it will capture a longer lockout period for the country and across the country.
… as you can see in the first lines of this post, none of this
counted for the Australian dollar. A huge step forward here today (and
others too). The Australian dollar has been strong for weeks now and
those who follow with the advice “the trend is your friend” (for
this asset and other assets “at risk”) will see its value.
Oil too, higher for the session. The first inventory data gave him a pop and he never looked back.