Japan Current Account (JPY) Aug: 2000.8bln (est 1502.7bln)
PBoC Fixes Yuan Reference Rate at 6.7098 (prev 6.7008)
Fed’s Evans: Sees inflation not improving to 2% until about 2020
China Premier Li: Global economic recovery is slow; protectionism is rising
Li: Chinese is economy is in a reasonable range
Li: Economy still faces downward pressure; debt risks are under control
RBNZ’s McDermott: Projections indicate further easing will be required
Commodity currencies declined sharply overnight, as the US Dollar extended gains. AUD/USD fell from 0.7610 in the early Asian session to a low of 0.7545 so far. It has broken below key support and further losses seem likely. NZD/USD has been under pressure since it broke below 0.72, and it extended losses to 0.7060 overnight. Techs remain bearish, with key support now seen at 0.6950. Meanwhile, USD/CAD keeps rising, despite the rally in oil prices, which usually supports the Canadian Dollar. USD/CAD bounced off 1.3140 yesterday and is now back above 1.32.
The Pound is still weak and continues to post fresh lows, although a bit slower since Friday's flash crash. GBP/USD traded as low as 1.2300 overnight, and a break below the big figure seems imminent. EUR/USD was quiet as usual, trading in a 1.1120-40 range.
Gold retraced some of the gains it made yesterday, but is holding relatively well given the broad USD strength at the moment. Support is seen at $1250, followed by Friday's low at $1241. Silver was rejected at $17.75 resistance yesterday and fell to $17.57 in Asia. Key support is noted at $17.05.