Forex news for Asia trading Tuesday 2 June 2015

Waiting for the RBA announcement at 0430GMT:

  • Preview of the RBA meeting today: on hold, but banks give dates to watch for the next cut
  • Preview of the RBA meeting today (Tuesday 2 June 2015) - Spoiler alert: No change expected
  • Australia - BoP Current Account balance for Q4: -10.7bn (expected -10.8bn)
  • New Zealand Treasury's Monthly Economic Indicators for May 2015 - out now
  • New Zealand Q1 terms of trade: +1.5% (vs. +1.7% expected)

Japan

  • Bank of Japan (BOJ) Governor Kuroda: Will not comment on level or speed of FX moves
  • Etsuro Honda, Adviser to PM Abe - comments on the yen, but not on its level
  • Sumitomo Mitsui Bank: USD/JPY could hit 128 in June
  • USD/JPY hits 125 (& just above) - highest since 2002!
  • Japan - April Labor Cash earnings: +0.9% y/y
  • Japan - May monetary base: +35.6% y/y (prior 35.2% y/y)

Greece - 'take it or leave it' proposal being prepared ... wait .... no, it isn't

  • EUR-Greece: Greece creditors meeting in Berlin has ended says German spokesman
  • EUR - Greece: FT says its not a "take it or leave it" ultimatum, but want a quick reaction
  • Lenders preparing a 'take it or leave it' final bailout proposal for Greece - more

More:

  • Goldman Sachs asks: Are stocks overvalued?
  • EUR/USD - here's a video view (includes seasonals, oil, AUD, GBP, USD/JPY)

USD/JPY a mover today in Tokyo, popping above 125 briefly and then dropping 40-odd points to 124.60. There was little in the way of market-moving news catalysts. Talk of take-profit sellers clustered above 125, and fresh buyers again from 124 and 123.

Meanwhile EUR, CHF and GBP all had only small ranges against the USD, leaving the various yen crosses to pretty much mimic the USD/JPY moves.

AUD and NZD both ground out gains through the session. We still await the RBA announcement (no change in rates expected, but there may be a more explicit discussion of an easing bias). Note, there is GDP report tomorrow (which the RBA will already have), and moves from some Australian banks to revise their expectations higher could put a cat amongst the short AUD pigeons (no offence intended, that's just a turn of phrase).