Aussie Climbs; Yen Falls On Rising Risk Appetite
27 June 2019 - 1:14PM
RTTF2
The Australian dollar climbed against its major counterparts in
the Asian session on Thursday, while the Japanese yen fell, as most
Asian shares rose on rising hopes for a trade deal ahead of the
highly anticipated meeting between President Donald Trump and
Chinese leader Xi Jinping at the G-20 summit in Japan this
week.
Trump voiced optimism over the possibility of a trade agreement
with China but said he is still considering imposing "very
substantial" tariffs on all Chinese imports if the two countries
were unable to reach a deal during the meeting.
Separately, U.S. Treasury Secretary Steven Mnuchin told CNBC the
U.S. and China had nearly completed a deal before talks broke down
last month.
However, he didn't shed any light on the sticking points to
achieving the final 10 percent and refused to speculate on whether
a deal would be completed.
The U.S. and China have agreed to a tentative truce in their
trade dispute, the South China Morning Post reported, citing
sources.
In economic front, data from the Ministry of Economy, Trade and
Industry showed that Japan retail sales rose a seasonally adjusted
0.3 percent on month in May - shy of expectations for a gain of 0.6
percent following the downwardly revised 0.1 percent drop in
April.
On a yearly basis, retail sales were up 1.2 percent - in line
with expectations and up from the downwardly revised 0.4 percent
increase in the previous month.
The aussie climbed to more than 2-week highs of 0.6999 against
the greenback and 1.6226 against the euro, from its early lows of
0.6983 and 1.6285, respectively. The next possible resistance for
the aussie is seen around 0.725 against the greenback and 1.60
against the euro.
Reversing from its early lows of 1.0452 against the kiwi and
0.9164 against the loonie, the aussie edged higher to 1.0478 and
0.9187, respectively. If the aussie rises further, 1.06 and 0.94
are seen as its next resistance levels against the kiwi and the
loonie, respectively.
The Japanese yen dropped to a 3-day low of 137.12 against the
pound and a new 2-week low of 122.81 against the euro, reversing
from its early highs of 136.62 and 122.42, respectively. The yen is
seen finding support around 140.00 against the pound and 125.00
against the euro.
The yen retreated from its early highs of 107.65 against the
greenback and 82.04 against the loonie, falling to a weekly low of
108.14 and more than a 5-week low of 82.36, respectively. On the
downside, 111.00 and 84.00 are possibly seen as the next support
levels for the yen against the greenback and the loonie,
respectively.
After rising to 110.09 against the franc at 8:45 pm ET, the yen
reversed direction and declined to 110.31. Continuation of the
yen's downtrend may see it challenging support around the 112.00
region.
Looking ahead, Eurozone economic sentiment index for June will
be out in the European session.
At 8:00 am ET, German preliminary consumer inflation for June is
set for release.
The U.S. weekly jobless claims for the week ended June 22,
pending home sales for May and GDP data for the first quarter will
be featured in the New York session.
CHF vs Yen (FX:CHFJPY)
Forex Chart
From Apr 2024 to May 2024
CHF vs Yen (FX:CHFJPY)
Forex Chart
From May 2023 to May 2024