Forex Today: Kiwi dumped in Asia, a mix of CB speeches on tap

Forex today in Asia was mainly driven by risk-on sentiment, with the Asian markets broadly higher alongside rallying Treasury yields and positive oil prices. As a result, the USD/JPY pair benefited the most in Asia, scaling multi-month tops near 114.50 levels, while the Kiwi was the biggest loser, dumped on weaker-than expected electronic card retail sales data. Meanwhile, the Aussie found support from solid Aus business conditions data published by the NAB.

The US dollar also caught a fresh bid-wave across the board on the back of hawkish remarks from the Fed official Williams, who advocated a rate hike this year.

Later today, the EUR calendar remains data-light and hence, speeches from BOE MPC members Haldane and Broadbent will be closely eyed for fresh take on the central bank’s future policy path.

Meanwhile, the US docket has the JOLTS job openings and wholesale inventories data on the cards, followed by FOMC member Brainard’s speech. Besides, the Canadian housing starts will be reported ahead of the US open.

Main topics in Asia

AUD/USD remains comatose despite upbeat NAB Business Survey data

The upbeat NAB business survey data released today has failed to lift the Aussie bond yield and the AUD/USD pair. The exchange rate remains flat lined just above 0.76 handle. 

NZD/USD flirting with multi-week lows, now eyeing 0.7200 mark

The NZD/USD pair finally broke out of its 5-day old trading range and tumbled to a three-week low near 0.7230-25 region.

The treasury yield curve is steepest since May 16

Treasury yield curve as represented by the difference between the 10-year yield and the 2-year yield currently stands at 0.99, which is the highest since May 16. 

Fed Williams wants to start balance sheet adjustment in next few months

San Francisco Fed head John Williams, while addressing questions following his speech in Sydney, said he would want to start balance sheet adjustment in the next few months and added further that it is reasonable to expect one more rate hike this year. 

Key Focus ahead

BoE: Deputy Governor Ben Broadbent in focus - TDS

The BoE’s Deputy Governor for Monetary Policy Ben Broadbent gives a speech at noon BST and Broadbent’s position on interest rates could be a key determinant for any possible MPC move later this year (his last speech on the topic was in March), according to the research team at TDS.

UK PM May’s speech and central bank speakers amongst market movers today – Danske Bank

UK Prime Minister Theresa May is set to speak today to mark her first anniversary as PM and will be amongst market movers for the day.

GBP/USD Forecast: more weakness below 1.2860 confluence support

The GBP/USD pair witnessed a lackluster trading action on Monday and extended post-NPF bearish consolidation within 30-35 pips broader trading range below the 1.2900 handle. 

Is Oil Ready to Rebound?

Oil prices had a rather abrupt reversal last week, raising concerns that the declining channel was beginning to break down to some extent. 

FX - Prepositioning for Yellen, Bank of Canada, UK Labor and More

It has been a quiet start to a busy week in the foreign exchange market with volatility focused on what we'll dub as wild Wednesday.