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Japanese Yen Extends Its Losses In The Morning Session
For the 24 hours to 23:00 GMT, the USD rose 0.15% against the JPY and closed at 108.40.
In the Asian session, at GMT0300, the pair is trading at 108.48, with the USD trading 0.07% higher against the JPY from yesterday’s close.
The pair is expected to find support at 108.15, and a fall through could take it to the next support level of 107.83. The pair is expected to find its first resistance at 108.68, and a rise through could take it to the next resistance level of 108.89.
Looking ahead, investors would closely monitor Japan’s leading index and coincident index, both for April, slated to release in a while.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
Swiss Franc Trading Lower In The Asian Session
For the 24 hours to 23:00 GMT, the USD declined 0.26% against the CHF and closed at 0.9913.
In the Asian session, at GMT0300, the pair is trading at 0.9919, with the USD trading 0.06% higher against the CHF from yesterday’s close.
The pair is expected to find support at 0.9879, and a fall through could take it to the next support level of 0.9839. The pair is expected to find its first resistance at 0.9960, and a rise through could take it to the next resistance level of 1.0001.
Moving forward, traders would await Switzerland’s unemployment rate for May, set to release in a while.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving average.
PBoC Yi: Tremendous room in fiscal and monetary policy to counter trade war
People's Bank of China Governor Yi Gang said in a Bloomberg interview that China has "tremendous" room for adjusting its fiscal and monetary policy to counter the impact of trade war with US. And, there is no red line in Yuan's exchange rate.
"We have plenty of room in interest rates, we have plenty of room in required reserve ratio rate, and also for the fiscal, monetary policy toolkit, I think the room for adjustment is tremendous," Yi said. He also noted that China's fiscal policy this year is "probably the largest and strongest fiscal reform package". That include tax cuts and fiscal resources allocation. If situation is getting "a little bit worse", the current fiscal package "is able to cover". But it situations gets "tremendously worse", they will "open the discussion".
On Yuan exchange rate, Yi said "trade war would have a temporary depreciation pressure on renminbi". However, he insisted "after the noise, renminbi will continue to be very stable and relatively strong compared to emerging market currencies, even compared to convertible currencies." Meanwhile, Yi also emphasized there is no red line in the exchange rate, and no "numeric number" is more important than the others.
Canada’s Ivey PMI Remained Unchanged In May
For the 24 hours to 23:00 GMT, the USD declined 0.46% against the CAD and closed at 1.3361.
Data indicated that Canada's seasonally adjusted Ivey PMI remained steady at a level of 55.9 in May.
In the Asian session, at GMT0300, the pair is trading at 1.3353, with the USD trading 0.06% lower against the CAD from yesterday's close.
The pair is expected to find support at 1.3325, and a fall through could take it to the next support level of 1.3297. The pair is expected to find its first resistance at 1.3402, and a rise through could take it to the next resistance level of 1.3451.
Trading trend in the Loonie today, is expected to be determined by Canada's unemployment rate for May, set to release later in the day
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
Aussie Trading A Tad Lower In The Morning Session
For the 24 hours to 23:00 GMT, the AUD rose 0.10% against the USD and closed at 0.6977.
LME Copper prices rose 0.5% or $27.5/MT to $5805.0/MT. Aluminium prices declined 1.3% or $23.5/MT to $1742.5/MT.
In the Asian session, at GMT0300, the pair is trading at 0.6976, with the AUD trading marginally lower against the USD from yesterday’s close.
Overnight data showed that Australia’s AIG performance of construction index fell to a level of 40.4 in May, following a reading of 42.6 in the prior month. Moreover, the nation’s seasonally adjusted home loan approvals unexpectedly eased 1.1% on a monthly basis in April, defying market expectations for an unchanged reading. In the previous month, home loan approvals had recorded a revised drop of 2.6%.
The pair is expected to find support at 0.6962, and a fall through could take it to the next support level of 0.6948. The pair is expected to find its first resistance at 0.6992, and a rise through could take it to the next resistance level of 0.7008.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
Gold: Yellow Metal Reverses Its Gains In The Asian Session
For the 24 hours to 23:00 GMT, Gold rose 0.22% against the USD and closed at USD1339.80 per ounce, amid weakness in the US dollar.
In the Asian session, at GMT0300, the pair is trading at 1337.60, with gold trading 0.16% lower against the USD from yesterday’s close.
The pair is expected to find support at 1332.20, and a fall through could take it to the next support level of 1326.80. The pair is expected to find its first resistance at 1343.60, and a rise through could take it to the next resistance level of 1349.60.
The yellow metal is trading below its 20 Hr moving average and showing convergence with its 50 Hr moving average.
Silver: White Metal Trading On Stronger Footing This Morning
For the 24 hours to 23:00 GMT, Silver rose 0.37% against the USD and closed at USD14.87 per ounce, tracking gains in gold prices.
In the Asian session, at GMT0300, the pair is trading at 14.88, with silver trading 0.07% higher against the USD from yesterday’s close.
The pair is expected to find support at 14.76, and a fall through could take it to the next support level of 14.65. The pair is expected to find its first resistance at 14.99, and a rise through could take it to the next resistance level of 15.11.
The white metal is showing convergence with its 20 Hr and 50 Hr moving averages.
Crude Oil: Oil Trading Higher, Ahead Of Baker Hughes Weekly Rig Count Data
For the 24 hours to 23:00 GMT, Crude Oil rose 2.99% against the USD and closed at USD53.04 per barrel, as concerns about energy demand eased, on possible tariff delay on Mexican goods.
In the Asian session, at GMT0300, the pair is trading at 53.22, with oil trading 0.34% higher against the USD from yesterday’s close.
The pair is expected to find support at 51.82, and a fall through could take it to the next support level of 50.41. The pair is expected to find its first resistance at 53.98, and a rise through could take it to the next resistance level of 54.73.
Crude oil is trading above its 20 Hr and 50 Hr moving averages.
Fed Williams: Shifts in demographics and productivity growth fundamentally altered the world after
In a speech delivered yesterday, New York Fed President John Williams said he viewed the pre-2008 crisis era as "the world before" and the period after that as "the world after". Inflation was a "major concerns" in the pre-2008 era. But now "inflation that's too low is now a more pressing problem." The experience of a slow recovery and persistently low inflation is a symptom of deeper problems afflicting advanced economies.
Two changes have taken place in "shifts in demographics and productivity growth" that fundamentally altered the economic environment. And that "translate directly into slower trend economic growth". Also, "an abundance of savings, and a decline in demand for savings resulting from slower trend growth, together lead to lower interest rates". Combined, they have contributed to "dramatic declines" in the longer-term neutral rate of interest, or r-star.
On the economy, he said "my baseline is a very good one" with GDP growth at above-trend 2.25% to 2.50%. Though, tailwinds from last year's tax cuts are fading. Headwinds from trade tensions are rising. He added the yield curve inversion is a "pretty strong signal" of "perception that rates are going to be lower". But he did't take that as "an oracle".
His full speech "If We Fail to Prepare, We Prepare to Fail".
Mexico offered more to US but tariffs still loom
The negotiations between US and Mexico on migration and tariff issues appeared to have made some progress. But the talks would continue on Friday and probably into the weekend. It's reported that the US is considering to delaying the 5% tariffs on all Mexican imports, which is due on Monday, June 10. But White House spokesperson Sarah Sanders reiterated Trump is still moving forward with the tariffs.
After the meeting on Thursday, US Vice President Mike Pence said Mexico had offered "more". "There has been some movement on their part. It's been encouraging," he said. "The discussions are going to continue in the days ahead." Mexican Foreign Minister Marcelo Ebrard said 6000 members of the National Guard were sent to secure its southern border with Guatemala.