5 Jun 2015
Aussie bulls back in control, US Non-farm payrolls – In focus
FXStreet (Mumbai) - The Antipodean currencies were caught in a bid wave in a calmer Asian session, with Aussie rebounded back above 0.77 handle. While the US dollar strengthened across the board, lifting USD/JPY beyond 124 barrier as markets now gear up for the most influential data of this week – American non-farm payrolls.
Key headlines in Asia
Bundesbank's Dombret: If Grexit occurs, manageable
Australia's AiG Construction PMI edges up in May
Lower dairy prices will pressure NZ banks' asset quality - Fitch
Dominating themes in Asia - centered on JPY, AUD, NZD
A low key affair in Asia, with Asian equities mostly lower awaiting fresh cues from US jobs reports due for release later today. While broad based US dollar strength was the underlying theme this session backed by the latest above estimates US jobless claims data released on Thursday. USD/JPY defended mild gains above 124.40 levels on the back of persistent greenback strength.
The Aussie rebounded in Asia, swinging back higher above 0.77 handle after the AUD bulls were boosted by upbeat Aus construction PMI report which came in at 47.8 versus 47.00. NZD/USD also edged higher tracking gains from its OZ counterpart, shrugging of Fitch’s warning that lower dairy prices will pressure NZ banks' asset quality.
Heading into Europe - centered on EUR, GBP
A fairly data-light European calendar with only German factory orders to be reported at 6GMT. The factory orders from Germany have expected show a rise of 0.6% in April versus 0.9% booked in the previous month.
Meanwhile, Greece headlines are likely to dominate in the session ahead with Greece having postponed €300m (£216m) debt repayment to IMF and bundle all four of its June payments together.
Later in the American session, all eyes are set on the main market mover for this week – the US non-farm payrolls along with the unemployment rate due to be published at 12.30GMT. The Bureau of Labor Statistics will publish May's non-farm payrolls on Friday, which is expected to hit a slightly improved figure of 227,000 after 223,000 booked previously.
TD Ameritrade chief strategist JJ Kinahan, noted on Thursday, "The focus for the rest of today is really going to set up for tomorrow morning, with ADP yesterday and jobless claims today, the expectation on the jobs is they will increase."
EUR/USD Technicals
MacNeil Curry, Strategist at Bank of America Merrill Lynch, notes "With Bund yields turning, €/$ is likely to stall out and turn lower; particularly given its proximity to almost year-long trendline resistance at 1.1393. Against here, the larger downtrend for 1.0283/1.0000 remains on firm footing. However, for now, we recommend staying away until a break of 3m channel support at 1.0870. This would confirm an end to the counter-trend price action and herald in a return to a trending environment."
Key headlines in Asia
Bundesbank's Dombret: If Grexit occurs, manageable
Australia's AiG Construction PMI edges up in May
Lower dairy prices will pressure NZ banks' asset quality - Fitch
Dominating themes in Asia - centered on JPY, AUD, NZD
A low key affair in Asia, with Asian equities mostly lower awaiting fresh cues from US jobs reports due for release later today. While broad based US dollar strength was the underlying theme this session backed by the latest above estimates US jobless claims data released on Thursday. USD/JPY defended mild gains above 124.40 levels on the back of persistent greenback strength.
The Aussie rebounded in Asia, swinging back higher above 0.77 handle after the AUD bulls were boosted by upbeat Aus construction PMI report which came in at 47.8 versus 47.00. NZD/USD also edged higher tracking gains from its OZ counterpart, shrugging of Fitch’s warning that lower dairy prices will pressure NZ banks' asset quality.
Heading into Europe - centered on EUR, GBP
A fairly data-light European calendar with only German factory orders to be reported at 6GMT. The factory orders from Germany have expected show a rise of 0.6% in April versus 0.9% booked in the previous month.
Meanwhile, Greece headlines are likely to dominate in the session ahead with Greece having postponed €300m (£216m) debt repayment to IMF and bundle all four of its June payments together.
Later in the American session, all eyes are set on the main market mover for this week – the US non-farm payrolls along with the unemployment rate due to be published at 12.30GMT. The Bureau of Labor Statistics will publish May's non-farm payrolls on Friday, which is expected to hit a slightly improved figure of 227,000 after 223,000 booked previously.
TD Ameritrade chief strategist JJ Kinahan, noted on Thursday, "The focus for the rest of today is really going to set up for tomorrow morning, with ADP yesterday and jobless claims today, the expectation on the jobs is they will increase."
EUR/USD Technicals
MacNeil Curry, Strategist at Bank of America Merrill Lynch, notes "With Bund yields turning, €/$ is likely to stall out and turn lower; particularly given its proximity to almost year-long trendline resistance at 1.1393. Against here, the larger downtrend for 1.0283/1.0000 remains on firm footing. However, for now, we recommend staying away until a break of 3m channel support at 1.0870. This would confirm an end to the counter-trend price action and herald in a return to a trending environment."