Asian equities were quiet on poor China PMI which came in at a 12-month low. While the US dollar continues to hold ground across the board supported by better than expected US macro data which may re-igniting earlier rate hike expectation’s. All eyes will be on unemployment claims this afternoon.
NZD/USD was heavily sold-off in Asia, knocking off the kiwi below 0.76 level on latest comments from RBNZ deputy governors stating that he does not see a rate hike scenario now. AUD/USD founds strength but is now under pressure after business confidence deteriorated as well as on China’s poor data. USD/JPY consolidating on daily chart after previous gains, the US housing data boosted USD bulls and trades around 120 levels,
For Europe the uncertainty around Greece may have shifted as report came in that a Greek Government official mentioned that an agreement between Greece and their creditors is near. Whilst other reports claim that a deal before Friday’ euro group is unlikely, however a deal before the end of the month is still possible according to EU’s Dombrovskies. It is not the question of if but when the deal will be done.
By Islam Towhidul