Forex Today: Yen bid in Asia amid risk-aversion, ECB minutes, US data in focus

North Korean tensions induced risk-aversion extended into Asia for the second day in a row, with markets seeking safety in the Yen and gold amid diminishing appetite for risk assets such as equities. The Aussie was largely unresponsive to outstanding trade figures from Australia, as the US dollar jumped back on the bids broadly, following the FOMC minutes led overnight drop.

Looking ahead, we have a quite EUR calendar today, with the Eurozone retail PMI figures on tap, followed by the ECB monetary policy minutes. Also, a bevy of ECB policymakers are scheduled to speak later in Europe.

The NA session is expected to be an eventful one, with a host of macro data from the US, including the ADP jobs, trade balance, jobless claims and ISM non-manufacturing PMI, while the Canadian docket offers the trade data release. Besides, FOMC member Powell’s speech and EIA crude stockpiles report will also remain in the spotlight.

Main topics in Asia

North Korea update: Trump says "Frankly, patience is over ...'

Attention in the Geopolitical sense focuses on the tensions surrounding N.Korea situation. 

Australia's May trade balance: A big beat on expectations, solid rebound in exports

Australia's trade balance for May came in at 2.47 bn vs 1.00 bn exp and 0.56 bn last. Exports jumped by 9% m/m, while imports rose by 1% m/m. 

EU’s Malmstrom: EU and Japan officials seal trade agreement

European Trade Commissioner Cecilia Malmstrom said after a meeting on Wednesday with Japanese Foreign Minister Fumio Kishida, Japan and the European Union should agree on Thursday to a free trade pact that could be completed within months, Reuters reports.

RBA’s Harper: ‘Plenty of evidence that you wouldn't want to rush’ raising rates

The Australian Press reporting overnight comments from the RBA's monetary policy board member Ian Harper, expressing his take on the economic and interest rates outlook.

Key Focus ahead

ECB minutes amongst market movers today – Danske Bank

Today at 13:30 CET in the euro area, the ECB minutes from the June meeting are due out, when the ECB changed its forward guidance on policy rates and will be keenly watched by investors, according to the research team at Danske Bank.

Trump due to make a major speech today in Poland - BBC

BBC now reporting that the US President Trump has arrived in Poland's capital Warsaw and is scheduled to make a major speech today in Warsaw.

GBP/USD: Struggle with 1.2950 extends, US data eyed

The Asian recovery in the GBP/USD pair lost legs once again just shy of 1.2950 barrier, as a sense of calm prevails across the fx board today, in the wake of escalating tensions between the US and North Korea over the missile launch row.

EUR futures: bearish signs emerging

According to CME Group’s preliminary figures of open interest in EUR futures for Wednesday, traders added more than 4.5K contracts vs. Monday’s final 422,496 contracts.