Forex Today: Yen rallies in Asia, AUD rebounds on RBA, EZ data – Up next

Forex today was dominated by risk-off trades combined with broad based USD weakness, as treasury yields and oil prices continued to tumble. The Aussie witnessed two-way business, initially dumped on the back of downbeat Australian current account data, while the Antipodean recovered entire losses on the RBA policy decision. Meanwhile, the Yen was the strongest across the fx board, the Kiwi outperformed the commodity-currencies.

Focus now shifts towards the second-liner economic releases from the Euroland, including the retail PMI, Sentix investor confidence and retail sales data. In the NA session, we have the Canadian Ivey PMI numbers on the cards, followed by the US JOLTS job openings and IBD/TIPP Economic Optimism. Also, of relevance for the Kiwi will be the NZ GDT price index data.

Main topics in Asia

PM May faced accusations of presiding over “appalling” cuts to police numbers - The Times

The Times reported that "ministers are planning multimillion-pound cuts this year to a counter-terrorism budget described by Theresa May as being at “the heart of the UK’s response to the threat we face.”

Japan nominal pay rises at fastest pace in four months, but…

The Japanese Labor Ministry data released this Tuesday morning showed, the labor cash earnings/nominal pay rose at a fastest pace in four months, but the real wages remained flat.

Australia's Q1 current account much worse-than-expected

Australia's March quarter current account data came at -3.1bn vs -0.5bn exp and -3.5bn last, revised from -3.9bn. 

New Zealand Treasury’s monthly report - Wage pressures remain subdued

“Despite the modest tightening in the labour market, wage pressures remain subdued”, says the latest monthly report from the New Zealand Treasury.

RBA keeps policy steady, housing market conditions starting to ease

The Reserve Bank of Australia (RBA) at its monetary policy meeting today, left the official cash rate unchanged at a record low of 1.50%, as widely expected.

Key Focus ahead

EUR/USD deflates from 1.1275 ahead of Sentix

The offered tone behind the US dollar weakened a bit across the board in early Europe, prompting a minor-retreat in the EUR/USD pair from daily tops of 1.1275.

Eurozone investor confidence and goods consumption amongst market movers today – Danske Bank

The research team at Danske Bank suggests that we face the quietest day on the data calendar this week as focus turns to Eurozone investor confidence, Eurozone goods consumption and Scandinavian house prices.

Australian Q1 GDP forecast lowered to 0.2% q/q vs 0.4% - Westpac

Analysts at Westpac are out with their responses on the Australian current account data, highlighting its implications on the first quarter Aus growth numbers due tomorrow.

UK elections: Big risks for a small gain – TDS

Analysts at TDS explain that the UK votes for a new government on Thursday and when the election was called on 18 April, the Conservative Party was solidly polling in the lead, but Labour support has steadily gained during the campaign.