FXStreet (Bali) - The Pound was the best performer in Asia, with the US Dollar also making some small progress to simply adjust indicators off oversold territory.
BoE Carney, right at the close of NY markets, threw a bombshell by saying that the Central Bank may start raising rate before the market expects. The explicit comments had an immediate effect on the Sterling's price action, which took off to never look back again (just like the NZD did after the RBNZ rate hike on Thursday). GBP/USD broke above the 1.6950, posting a high of 1.6965.
AUD/USD, after printing its highest since mid April at 0.9436, it retraced back down, seeking to test bids parked just ahead of 0.94. USD/JPY recovered until faced with supply circa 101.80, with the BoJ policy announcement being a no-mover for all things Yen. The market now awaits the press conference by Governor Kuroda, as to gauge new clues on policy directions. The rest of G10 currencies did not have major changes.
Main headlines in Asia
BoE’s Carney could hike rates sooner than markets expect
Actions to tackle housing risks considered - BoE Carney
New Zealand Business NZ PMI dipped from previous 55.2 to 52.7 in May
Japan threatens China's air space, Chinese envoy says
BoJ announces no change in policy