FXStreet (Bali) - The US Dollar consolidated its losses along Asian hours, following what was perceived as a dovish Fed, still far behind the curve compared to other central banks under tightening.
After the substantial losses posted by the US Dollar on Wednesday, the G10 FX complex saw a 10-20 pips consolidation patterns, with the exception of the NZ Dollar, which was hit a bit harder following a modest NZ Q1 GDP reading of 1% vs 1.2% expected, with the annual print coming at 3.7% vs 3.6% expected; upward revision in the previous releases allowed the losses to be limited though. The Pound had a failed attempt to break above 1.70, while the Euro and Yen were comatose.
On the fundamental front, the Reserve Bank of Australia (RBA) published its quarterly bulletin, although the content of the release had no impact on the forex market. In news our of Japan, Kyodo reported that Japan’s Cabinet may approve its updated growth strategy on June 24, while Bank of Japan (BOJ) board member Morimoto crosses the wires, saying that Japan’s economy continues to recover moderately as a trend, adding, among many other comments, that effect of the BOJ’s monetary easing likely to strengthen ahead as inflation expectations heighten. Lastly, Moody’s said that Japan’s plan to cut corporate taxes is credit positive.
Main headlines in Asia
NZ GDP prints solid growth figures
RBNZ appoints Simpson as new member
Japan’s plan to cut corporate taxes is credit positive - Moody's
NZ GDP won't dissuade RBNZ from July rate hike - Westpac
BoJ Morimoto: Japan’s economy continues to recover