We will remain on yen watch in Asia today after rampant weakness in yesterday’s trade. Today we have the BoJ monetary policy meeting minutes from last week’s meeting, but the real action is at the end of the week when we get CPI numbers out of Japan. Traders could consider buying dips into 101 heading into the CPI figures.
The single currency lost some ground after some dovish comments by a couple of ECB members including Asmussen who suggested the ECB still had room to take more easing action if deflationary pressures intensified. German Buba President Jens Weidmann speaks this morning at a speech entitled Europe’s Monetary Union, and this could see the euro bounce off overnight lows given Germany tends to be a bit more hawkish. Near-term support is in the 1.35 region.
RBA Deputy Governor Lowe is speaking at 9.15am at a conference titled Productivity. This is likely to draw some comments on the AUD and its impact on productivity. Should we hear further jawboning from Lowe, AUD/USD could retest overnight lows in the 0.912 region.
Oil continues to experience volatility following Iran’s nuclear deal. A big gap lower was created when the commodity opened trade yesterday. The current change in sentiment could see this gap closed in the near term.