Forex Today: AUD weaker on Aus CPI, eyes on US tax reforms announcement

Risk-on trades dominated the Asian markets, after a strong performance seen on the Wall Street and amid higher treasury yields. The Japanese yen remained under pressure in the wake of increased demand for risk assets, while the Aussie stalled its recovery mode and fell back into the red following the release of the Australian Q1 CPI report, which revealed a mixed picture of the consumer spending. The EUR/USD pair maintained its bullish streak amid a broadly subdued US dollar, while the Kiwi ran through fresh supply during late-Asia, despite risk-on and upbeat NZ credit card spending data.

Heading towards the European opening bells, the immediate focus remains on the Swiss UBS consumption indicator, while the EUR calendar remains absolutely data-dry. Later today, the NA session offers the Canadian retail sales data and US EIA crude oil inventories report. Apart from the data releases, the Trump administration’s announcement on the impending tax reforms plan will hog the limelight and shape up next direction in the US dollar.

Main topics in Asia

Trump's administration plans to tax repatriation of corporative foreign earnings at 10%

According to Livesquawk, U.S. President Donald Trump's administration plans to tax repatriation of corporative foreign earnings at 10%.

Canada’s PM Trudeau tells Trump that Canada will vigorously defend interests of softwood lumber industry

Reuters reporting statement from the Canadian PM Trudeau’s office, directed to theUS President Trump, in the wake of yesterday’s reports that the Trump administration plans to impose 20% tariffs on soft lumber imports from Canada.

US Comm Sec Ross: Trump administration mulls more trade actions - WSJ

The US Commerce Secretary Wilbur Ross said in a WSJ interview late-Tuesday that The Trump administration is considering launching trade actions to protect the US aluminum, semiconductor and shipbuilding industries.

Australia's Q1 2017 CPI: Headline misses expectations

Following the sluggishness seen in Australia's Q4 2016 CPI readings, today's inflation figures for the Q1 2017 showed a mixed picture, with the headlines numbers missing expectations. 

Gold drops to Feb high on broad based risk-on

Gold prices dropped to the February high of $1263 levels as the major US equity indices neared record highs, while the treasury yields jumped to two-week highs.

Key Focus ahead

EURUSD: Prefer to buy dips

The Euro has had a strong session in reaching 1.0949, and looks as though it could head higher still over the next few sessions although the 4 hour charts are now approaching overbought extremes, so some caution is warranted on the topside, particularly in view of Donald Trump’s impending tax announcement…

GBP/USD Forecast: eyeing a fresh bullish break-out above 1.2850

The US Dollar remained under some pressure against its key European counterparts, with both the GBP/USD and the EUR/USD major consolidating overnight gains. There are no macroeconomic data due for release on Wednesday and hence, markets would eagerly wait for Trump's big announcement on tax reforms.

FX Traders Hang Hope on Trump as USD, EUR Soar

Forex traders are not the only ones hanging their hopes on Donald Trump, who plans to make a big announcement on tax reform on Wednesday. 

BOJ to keep its policy stance intact on Thursday - Barclays

FX Strategists at Barclays provide their insights on what to expect from Thursday’s BOJ monetary policy review.

BBG Survey: US Q1 GDP seen bouncing back but not reaching Trump’s target

According to a Bloomberg Survey of economists, the US GDP probably expanded at 1% annualized rate in Q1 2017.