ForexLive Asia-Pacific FX news wrap: USD carried on weaker

• AUD traders note – RBA Deputy Governor Hauser to speak tomorrow on the economic outlook,
• U.S. Commerce Secretary Gina Raimondo announces US$25bn Indo-Pacific Infrastrucure
• Heads up for US Treasury Secretary Yellen speaking on Thursday
• BOJ’s Nakamura: Says inflation may not reach 2% from FY 2025 on if consumption weakens
• Australia housing finance data for April, Owner occupied loans +4.3% m/m
• Australia Trade balance (May) AUD 6.548bn surplus (expected AUD5.5bn surplus)
• PBOC sets USD/ CNY reference rate for today at 7.1108 (vs. estimate at 7.2436)
• New Zealand data: ANZ Commodity Price Index for May +1.1% m/m (prior 0.5%)
• EUR/USD forecast – break below 1.05 more likely than a sustained move above 1.10
• European Central Bank to cut 25bp today, and plenty more in the months ahead – preview
• US Federal Reserve’s Federal Open Market Committee (FOMC) meet next week – preview
• Bank of Canada rate cut – will cut again in July and 100bp in total for 2024
• Goldman Sachs sees a “wall of money” pouring into the US equity market in Q3
• European Central Bank interest rate cut expected today, then to cut by 200bp by July 2025
• Morningstar say OPEC is operating from a weak position, to weigh on oil
• Bank of Canada rate cut – the BoC isn’t done, another 50bp of cuts in 2024, more in 2025
• Bank of Canada rate cut – expect a further 75bp of cuts in the second half of the year
• Forexlive Americas FX news wrap 5 Jun: Nvidia closes w/market cap of $3.01T. Rates lower.
• ICYMI – Saudi Aramco lowered prices for all of its oil to Asia, increased to Europe though
• Record closes for both the NASDAQ and the S&P indices
• Trade ideas thread – Thursday, 6 June, insightful charts, technical analysis, ideas

The
US dollar followed on weakening further during Asia morning trade,
with NZD/USD hitting a 3 month high. EUR, AUD, GBP, CAD, CHF (very
notably) all strengthened. Even the yen found some bids, with USD/JPY
dropping to circa 115.40 briefly.

There
was no pertinent fresh news. We had data from Australia, but this is not what moved FX.

The
Bank of Japan did weigh in, with noted dove on the BoJ policy board
Nakamura voicing concerns including:

• He
  thought the achievement of the BOJ’s 2% price target would not
  persist, not beyond fiscal year 2025, unless consumption picks up
• The
  pass through of wages to inflation remains weak, and this has meant
  household purchasing power and consumption is also weak, he wants to
  see inflation-adjusted consumption turning positive in order for the
  Bank to normalise monetary policy
• He says that based on current
  data, its appropriate to keep accommodative policy as is

Nakamura’s
assessment contrasts with that of board colleague Himino yesterday.

USD/JPY
bounced a little, back to 155.70 and thereabouts.

This article was written by Eamonn Sheridan at www.forexlive.com.