By Kymberly Martin
The JPY was the standout performer yesterday, gaining 1.5% against the USD. Most currencies have had a fairly choppy 24-hours of trading.
The USD made gains into the early hours of this morning, but has subsequently given most up as European currencies have fought back. From early morning lows near 1.1130 the EUR/USD now trades at 1.1240.
The JPY consolidated overnight after a large gain yesterday afternoon. The Bank of Japan announced no new easing measures at its meeting yesterday that might have helped to dampen current market enthusiasm for the JPY. The USD/JPY promptly fell. From early afternoon highs above 105.50 the USD/JPY declined to evening lows near 103.50. It now trades at 104.40.
The GBP/USD traded down toward 1.4000 in the early hours of this morning, before rebounding to 1.4230 currently. The Bank of England provided no surprises at its meeting, leaving policy unchanged ahead of next Thursday’s referendum on EU membership.
Campaigning for the referendum was suspended overnight after a pro-EU law maker was shot whilst meeting her constituents in her electorate in the north of England.
The biggest surprise in yesterday’s AU employment data was that it was actually quite close to market expectation (given recent volatility in the data). The AUD/USD experienced a very short bout of volatility around the data release, before downward momentum set in last evening. However, the AUD/USD has subsequently rebounded from early morning lows to sit at 0.7360 currently.
Trading the NZD/USD over the past 24-hours could have resulted in whiplash. It gapped higher yesterday morning after the upside surprise on NZ Q1 GDP. It has subsequently traded between 0.7090 and 0.6970, with some fairly erratic moves. It currently sits at 0.7040.
There are two NZ data releases today, the BNZ manufacturing PMI and ANZ confidence survey. Neither is generally a large market mover. In coming days the fate of the NZD will likely remain firmly with global risk appetite, in the countdown to Thursday’s UK referendum.
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