Forex Today: Kiwi dives on RBNZ jawboning & N.Korea risks, UK data in focus

Forex today remained in tight trading ranges in Asia, as risk-off trades somewhat stabilized. However, looming North Korea risks continue to keep the investors on the edge, offering little to cheer about. Hence, markets preferred to hold the world’s reserve currency, the US dollar, prompting a fresh bounce in the USD index back above 93.50 levels.

On the data front, a set of mixed Japanese core machinery orders and PPI data failed to impress the Yen bulls, while the Aussie remained on the back foot amid renewed oil-price weakness and downbeat Aus MI inflation expectations data. The main mover was the Kiwi, having dropped nearly 1% on RBNZ‘s jawboning the exchange rate, while the central bank left the interest rates unchanged.

Main topics in Asia

RBNZ keeps rates unchanged at 1.75%

The Reserve Bank of New Zealand (RBNZ) said that it would leave the official cash rate unchanged at 1.75% in a decision that was widely expected, stating that monetary policy will remain accommodative for a considerable period.

N. Korea says seriously examining "simultaneous fire" of 4 missiles at Guam

News hitting the wires could be setting up further risk of sentiment in Asia for today with Korea that has said President Donald Trump's "fire and fury" comments are "load of nonsense," as reported by KCNA Reuters news.

Australia MI inflation expectations pullback in August

The Melbourne Institute [MI] August inflation expectations gauge came-in at 4.2% vs. previous print of 4.4%. 

RBNZ’s Wheeler favors lower NZD, keeps intervention option open

RBNZ’s Wheeler, while speaking in parliament, said the central bank would like to see a lower NZD.

Guam governor shrugs off North Korea's mid-August strike plan - RTRS

Responding to North Korea’s statement, citing its plan to launch missiles at Guam by mid-August, Eddie Calvo, the Governor of the US Pacific Island noted (via Reuters):

Key Focus ahead

In the day ahead, we have the first major economic release of the week from the UK docket, viz: the industrial and manufacturing production, trade balance and construction output data. Meanwhile, there are no relevant macro news from the Euroland. The US calendar offers the PPI and jobless claims data, which will be followed by FOMC member Dudley’s speech and Federal Budget balance.

GBP/USD targets 1.3050 or 1.2950 on UK industrial production?

The GBP/USD pair is better offered in Asia around 1.30 handle, having witnessed a temporary reversal a day before from three-week lows of 1.2950.

UK industrial production to come in largely unchanged - Barclays

In the view of analysts at Barclays, the UK industrial production data is likely to come in unchanged from the previous month, while the manufacturing production levels are set fall in the reported month.

EUR/USD: Bond yield spread says the pair has topped out

EUR/USD fell to 1.1689 [support offered by the trend line sloping upwards from June 23 low] on Wednesday before recovering losses to end the day on a flat note at 1.1757 levels.

Key data coming up from US session? - Nomura

Analysts at Nomura offered a preview of the next key data from America.