RBA SoMP: Non-Mining Business Investment Outlook Subdued Near Term
RBA SoMP: Revises Down Forecast Terms Of Trade A Little Further
RBA SoMP: China Outlook A Key Source Of Uncertainty For Forecasts
Fed’s Mester: See A Little More In Terms Of Downside Risks To US Economy
Mester: Inflation Expectations Still Stable Despite Lower Oil
PBoC Fixes Yuan Reference Rate At 6.5314 (prev 6.5419)
In the Asian session, the USD weakened further, while the Canadian Dollar was the best performing currency. USD/CAD fell from 1.3760 to 1.3722 in Asia and a retest of 1.3640 seems likely in the short-term. USD/JPY also extended losses overnight as it declined from 117.00 at the Tokyo open to a low of 116.55 later in the session. There is no notable support until 116.00 and a break below would then pave the way for a 115 test.
EUR/USD was caught in a tight range and traded 1.1190-1.1215 in Asia, while GBP/USD was consolidating between 1.4560 and 1.4590. Volatility is likely to remain low in the European session, as traders are waiting for US employment data at 13:30 GMT. The market is expecting a 190k print for NFP, while the unemployment rate is expected to remain unchanged at 5.0 %.