Asia was a relatively eventful affair today, with a couple of second-liner macro news reported from the OZ economies. New Zealand’s Q2 retail sales jumped beyond expectations and bolstered the recent upbeat momentum in the Kiwi. However, the Aussie failed to benefit from upbeat Australian construction output data, as the Australian political jitters continued to weigh on the domestic currency.
Meanwhile, the USD/JPY pair moved higher and tested the 110.50 levels, despite a broadly subdued US dollar and negative Treasury yields, as higher oilprices and Japanese equities underpinned. Both the EUR and pound remained poised to extend their corrective upside, although the bulls lacked vigor ahead of the key FOMC minutes release due later today.
The Canadian dollar and Mexican Peso lost ground following the denial of the existence of the NAFTA deal with the US. The latest report by Bloomberg cited that the US and Mexico are said to move closer to the NAFTA framework, although some hurdles still remain.