Risk-sentiment seeps back in Asia, UK construction PMI – Next in focus

By FXStreet FXStreet (Mumbai) – The USD bulls jumped back into the bids after steep losses witnessed during the first two trading sessions this week as appetite for risk seems to return in the markets. The risk currencies such as AUD, NZD and the newly crowned USD are the major beneficiaries amid risk-on moods while oil and most Asian stocks also flipped to gains.

Key headlines in Asia

Australia’s Q2 GDP misses expectations

SHCOMP drags Asia lower, Nikkei bucks the trend

Dominating themes in Asia – centered on JPY, AUD, NZD

A calmer Asian session, dominated by re-emergence of risk-on environment on rebounding Asian equities as well commodity prices, which helps to lift the overall market sentiment.

The US dollar enjoyed heavy gains as the buck staged a solid comeback against its major rivals as traders preferred to hold the US currency ahead of the key US employment report due to be reported today and on Friday. USD/JPY was the biggest gainer amongst the majors, up 0.70% to trade at 120.17, while the EUR/USD pair loses -0.31% and trades around 1.1280 levels.

As noted earlier, the Antipodeans also rebounded sharply as stabilizing commodity prices supports the resource-linked AUD and NZD. The Aussie dipped to 0.6982 the lowest …read more

Source:: FX Street