Global Markets:

  • New Zealand (NZD) ANZ Business Confidence (MAY): 53.5%, Previous: 64.8%
  • Australia (AUD) Construction Work Done (q/q): 0.3%, Expected: -0.2%, Previous: -1.0%
  • Australia (AUD) MI Leading Index (m/m): -0.5%, Previous: 0.0%
  • Total known ETF Gold holdings jumped to a monthly high yesterday, according to data from Bloomberg
  • Fed’s Lockhart: First Fed rate hike expected in H2 2015. Inflation to hit 2% in the medium-term. 3% economic growth seen in next several quarters
  • Fed’s Lockhart: Disinflation risks appear to have declined but Fed is “not in a rush” to begin raising the benchmark interest rate
  • Asia Stock Markets: Nikkei up 0.30 %, Shanghai Composite gained 0.15 %, Hang Seng rose 0.80 % and Australia’s ASX is 0.50 % higher on the day
  • Commodities: Gold at $1264, Silver at $19.12, Copper at $3.17, Crude Oil at $104.12
  • Bonds: US 10 year yield at 2.511

 FX Flows:

  • AUD – Leveraged names were AUD/USD sellers overnight, but it was very quiet overall. Talk about a large Asian account bidding the pair ahead of the 0.92 barrier option, while offers are located around the 0.93 level.
  • CAD – Local corporates have bids scattered in the lower 1.08s and one of the local banks report that decent selling interest starts at 1.09.
  • EUR – In EUR/USD, the 1.3610 support level held once again. The pair continues to trade with an offered tone though, with leveraged names still very keen to sell any rallies. Several banks are reporting sizeable stops beneath the big figure, while to the topside, offers remain concentrated at 1.3670-80.
  • GBP – Sterling is looking increasingly vulnerable. GBP/USD long positioning is still very crowded, so risks of a deeper retracement towards the 1.6650 level are growing. Bids reported at 1.6780 and ahead of 1.6730; momentum sellers looking to sell a 1.6750 break & stops beneath. To the topside, heavy selling interest at 1.6880 and around 1.69. EUR/GBP could see a retracement towards 0.8160 as month-end flows will be supportive.
  • JPY – USD/JPY broke above 102.00 in yesterday’s NY session, but dealers reported that volumes were not great. Momentum eventually faded away and we are back sub-102.00. Flows were light in Asia; good bids reported from 101.80 down to 101.70, stops through 101.60. Dealers say they expect to see the usual month-end selling from corporates.
  • NZD – The Kiwi fell overnight after a disappointing Business Confidence release, hitting a low of 0.8532. The currency is resilient however, with 0.8515 support still holding. Stops through that level and large sub-0.85; next key tech support at the 100 DMA at 0.8472. To the topside, key intraday resistance at 0.8580/85.

Upcoming Events:

  • 05:45 GMT – Swiss GDP (0.6 % QoQ, 1.9 % YoY)
  • 06:00 GMT – German Import Price Index (0.0 % MoM, -2.2 % YoY)
  • 07:55 GMT – German Unemployment Change (-15k)
  • 07:55 GMT – German Unemployment Rate (6.7 %)
  • 09:00 GMT – Euro Zone Consumer Confidence (-7.1)