Forex Today: Aussie cheers Q1 GDP, a light calendar ahead

Asia today saw a recovery in treasury yields across the curve, underpinning a broad based rebound in the buck from multi-month lows, while amongst the Asia-pac currencies, the Aussie benefited the most from better-than expected Australian Q1 GDP figures. The Japanese currency also corrected lower, after yesterday’s rally on rising Qatar tension and UK election jitters.

Heading into Europe, the German factory orders have come in way below market expectations. Focus now remains on the Chinese foreign exchange reserves data for the month of May amid a lack of fundamental drivers from the Euroland and US. Meanwhile, Canada’s building permits are also on the cards later in the NA session .

Main topics in Asia

S&P does not expect a meaningful expansion or reduction of the US fiscal deficit

Ratings agency Standard & Poor’s (S&P), in its latest report on the US, says, “We don’t expect a meaningful expansion or reduction of the fiscal deficit over the forecast period”.

UK poll (Opinium): Conservatives lead 43% vs Labour 36%

According to the latest UK poll via Opinium, Conservatives are leading with 43%, while Labour stands at 36%. The Opinium poll was conducted between the 4th to 6th of June.

Australia's GDP eases in Q1, but beats estimates

Australia's Gross Domestic Product (QoQ) for Q1 arrived at 0.3% vs 0.2% expected and 1.1% last, while the yearly reading registered 1.7% vs 1.5% expected and 2.4% last. The data has boosted the Australian Dollar across the board. 

NZ: Job ads eased 0.6% in May - ANZ

Sharon Zollner, Senior Economist at ANZ, points out that New Zealand’s ANZ job ads eased 0.6% in May (seasonally adjusted) as the data is plateauing after a period of very strong growth, with the number of ads being posted up 15.6% versus a year ago (3-month average).

Key Focus ahead

EUR/USD on the offers around 1.1265, ‘Super Thursday’ in focus

Having failed once again near 1.1285 levels, the spot continues to remain on the back foot, as markets refrain from creating any fresh positions ahead of the key  political and economic risk events due tomorrow, marking a Super Thursday.

Euro area Q1 GDP and China’s FX reserve data amongst market movers today – Danske Bank

Euro area’s final GDP figures and China’s FX reserve data are amongst the key economic releases according to the analysts at Danske Bank which are likely to garner maximum investors attention.

UK Election: Risks for the pound - Westpac

Sean Callow, Research Analyst at Westpac, explains that the UK general election will be on Thursday 8 June and the pound seems set to be quite volatile as the results are revealed, with GBP/USD potentially anywhere from sub-1.20 to 1.35 in the most extreme scenarios.

Trump to outline infrastructure plan on Wednesday - BBG

On Wednesday, the US President Trump is expected to outline an infrastructure plan that includes federal grants to rural areas as well as to states and localities to create additional funding for projects.