Forex Today: Antipodeans cheer China trade, US PPI, Fedspeaks eyed

Broad based US dollar weakness remained the main theme in Asia on Thursday, after the Treasury yields suffered on dovish comments by the Fed Chair Yellen during her testimony.  The Kiwi emerged the top gainer in Asia, followed by the Aussie, as both the Antipodeans were boosted by solid Chinese trade data for June. Meanwhile, the Japanese currency remained on the front foot across the board amid mixed markets and BOJ headlines.

Main topics in Asia

BoE's hawkish dissenter Cafferty seeks rate hikes in August and unwinding of QE

BoE's hawkish dissenter Cafferty has been reported in The Times saying that the Bank should review its policy of leaving QE unchanged until interest rates are dose to 2 per cent.

Brexit: Irish leaders warn of trade disruptions on 'calamitous divorce'

The Irish Business and Employers Confederation (IBEC) said that Brexit would ‘massively disrupt’ trade, leaving the rising firms ‘exposed’. 

China’s June trade data (Yuan terms): Surprises positively as Exports jump sharply

China's trade balance for June, in Yuan terms, came in at CNY+294.3bn billion vs +275.1 bn expected and +281.6bn last.

BOJ mulls downgrading CPI forecasts for FY 2017 & 18 - Nikkei

The Nikkei Asian Review out with latest BOJ headlines this Thursday, citing that the BOJ is mulling downgrading its CPI forecasts for FY 2017 and 2018, while may up its growth forecasts for FY 2017/2018 to 0.1-0.2 percentage points.  

Moving on, the German final CPI release will kick-off a data-light EUR calendar today, with the only Swiss PPI and BOE Credit Conditions survey due to be reported. Meanwhile, the NA session remains action-packed, with the Canadian NHPI data, followed by the US jobless claims and PPI releases. Also, in focus, remains the Round 2 of Yellen’s testimony before the Senate, while speeches from the FOMC members Evans and Brainard will also provide fresh trading impetus for the USD traders.

Key Focus ahead

Will EUR/USD regain bid tone on falling US-German 10-year yield spread?

The EUR/USD dropped to an Intraday low of 1.1392 on Wednesday before ending the day at 1.1411. The common currency failed to strengthen despite sell-off in the USD following Yellen’s testimony.

GBP/USD: Bulls take a breather, 1.2930 still on sight?

The GBP/USD pair maintains its recovery-mode from nine-day lows in the Asian trades, as the dust settles over the Yellen’s testimony aftermath.