FXStreet (Bali) - The Sterling was the main beneficiary in Asia, following comments from BoE Carney that he would not wait for real wages to turn positive before raising interest rates.
The rest of G10 currencies traded in familiar levels, with traders sidelined ahead of key risk events, including the FOMC minutes on Wednesday and the Fed Jackson Hole Symposium from Friday till Sunday.
The Ukrainian vs Russian conflict remains very fluid, although no new developments disturbed markets today. The ICRC said that Russian and Ukrainian had reach an agreement for Russian 'aid' vehicles to enter the country. German, French, Russian and Ukraine Foreign Ministers held talks on Sunday, but no headlines crossed the wires.
In other fundamental news, New Zealand's performance of services index for July came at 58.4 vs 54.7. In China, the July new home prices came at +2.5% y/y vs +4.2% in June, while foreign direct investment (YTD) (YoY) came at -0.35% vs 2.20% prior. In Australia, the July new motor vehicle sales stood at -1.3% m/m vs +1.7%. The FT reported that Swiss phharmaceutical Roche is in talks to take over Japanese Chugai, a move that may have an immediate impact on CHF and JPY on M&A flows if the deals is finally confirmed, with sources suggesting that it may be confirmed as soon as this week.
Main headlines in Asia
BoE Carney: Rise in real wage no prerequisite to kick-start hiking cycle
Fed's Bullard: Market trading too dovishly compared to the committee
Russia, Ukraine agree to let Russian 'aid' vehicles in - ICRC
Australia New Motor Vehicle Sales (MoM) fell from previous 1.7% to -1.3% in July
China House Price Index dipped from previous 4.2% to 2.5%
USD longs and EUR shorts reduced - Nomura
Moody's: France deficit target miss a credit negative
M&A: Swiss Roche in talks to take over Japanese Chugai