Forex Today: Aussie back below 0.80 on poor data, EZ GDP, ECB in focus

Forex today was a quiet affair in Asia, with a sense of calm prevalent ahead of the ECB monetary policy decision, leaving the EUR/USD pair and Cable almost flat-lined. Meanwhile, the US dollar consolidated yesterday’s solid comeback against its major peers, as traders digest the US debt ceiling extension news.

Despite positive Asian equities, the Japanese currency regained lost footing amid persisting North Korea risks, while the Aussie surrendered 0.80 handle on the release of downbeat Australian retail sales and trade data. The Kiwi defended 0.72 handle, with sentiment slightly hit by weaker oil prices.

Main topics in Asia

South Korean PM says North Korea may launch a missile on September 9th

Reuters with the headline and this has sent the yen higher although could just be a blip as this is already known in the market and to be expected given its a national holiday in N.Korea.

US Treasury Sec Mnuchin warns of sanctions on any country trading with N. Korea

Additional headlines crossed the wires from the US Treasury Secretary Mnuchin, this time speaking on the North Korean missile threat.

Australia's July retail sales ease in July, miss expectations

Australia's retail sales for the month of July came at +0.0 % vs 0.3% expected and 0.3% last.

Australia's July trade balance disappoints, both exports & imports decline

Australia's trade balance for July came in at 460 mn vs 875 mn exp and 856 mn last. Exports were down by -2% m/m, while imports were also down by -1% m/m. 

Key Focus ahead

The session ahead is expected to emerge quite eventful, with the all-important ECB monetary policy outcome on the cards. ECB Chief Draghi’s intent on QE tapering will be closely eyed for fresh trading opportunities. In the meantime, markets will take cues from the German industrial production data and Eurozone final Q2 GDP report.  From the UK docket, the Halifax HPI will be reported.

Moving on, the NA session offers the Canadian building permits and Ivey PMI data, while from the US, we have the jobless claims, IBD/TIPP Economic Optimism and crude oil Inventories report.

EUR/USD in search of fresh direction, ECB - key

The EUR/USD pair traded choppy in the Asian trade this Thursday, having stalled its overnight recovery at 1.1935 levels, as the bulls turn cautious ahead of the key ECB policy event.

5 Reasons why ECB's Draghi won’t talk down the Eur today - ANZ

FX Strategists at ANZ are out with 5 key reasons why the ECB President Draghi could refrain from jawboning the Euro at its monetary policy announcement due later on Thursday.

GBP/USD is in sync with 10-year bond yield differential

Tuesday’s big break above 1.30 handle in GBP/USD was followed by a failure to take out 1.3079 [61.8% Fib R of Aug 3 high - Aug 24 low] yesterday. 

Brexit Bill set for first debate in parliament - BBG

As Bloomberg reports, the UK PM May’s flagship Brexit bill will be debated for the first time Thursday, giving opponents an opportunity to lay out their objections in Parliament. 

Final Eurozone Q2 GDP data preview - HSBC

HSBC analysts out with their expectations on the upcoming final Eurozone Q2 GDP data due out on Thursday at 0900GMT.