Morning Market Update – Aussie Goes Down

So Far

Japan’s data release has some good news for the yen and came in better than the expected results in the day

Japan Gross Domestic Product (QoQ) registered above forecasts (0.4%) in 1Q: Actual (0.5%)

Japan Gross Domestic Product Deflator (YoY): -0.8% (1Q) vs previous -0.1%

Japan Gross Domestic Product Annualized came in at 2.2%, which was above expectations (1.7%) in 1Q

Aussie saw some decline across the market with a decline in Australia Consumer Inflation Expectation, which fell from the previous fix of 4.1% to 4% in May.

Coming up

Moving on for the day, we have some major release for the Aussie with employment release for full/part time along with the Participation Rate which have already been signaling weaker than the previous release. The major impact is seen for them with the Employment Change which are forecasted at 5K compared to the previous release which was seen at 60.9k and can take them further down in the day.

Pound may see mixed reactions in the day with the Retail Sales (YoY) showing positive signs but Retail Sales ex-Fuel (MoM) may see a slight decline compared to the previous release.

Euro has an ECB Monetary Policy Meeting Accounts later in the day and we expect that important news are to be heard from ECB President Draghi’s Speech.

Dollar has the continuing Jobless Claims which may take the greenback further down in the day as the forecast was already at 1.96M against the previous fix of 1.918M. With the Philadelphia Fed Manufacturing Survey too not looking better as the

forecast is at 19.5 compared to the previous release of 22, the demand

for the greenback could be dampened.

The same can be said for the Initial Jobless Claims which look to take the dollar further below as forecasted at 240K which was last seen at 236K. The forecasted trend for the greenback is looking weaker and can continue the decline as was seen in recent session unless some major news comes from FOMC Member Mester speech later in the day.
For more detailed analysis from the author, please visit NoaFX.