A quiet Asian affair this Tuesday, with a typical risk-averse market environment amid continued Yuan sell-off amid lingering trade tensions while the Asian equity markets witnessed moderate gains, led by the rally in China stocks. China’s new fiscal measures to boost the economic growth seemed to lift the local equities. Across the fx board, the Antipodeans surrendered gains and fell back into the red zone, tracking the slide in the Yuan and negative oil prices. Meanwhile, the US dollar extended its broad-based recovery and headed towards the 95 handle, despite negative Treasury yields. Hence, the EUR and GBP traded on the offers, although modestly flat awaiting fresh impetus from the upcoming macro news later today. The Yen struggled to retain the bids, as the USD/JPY pair bounced-off lows just ahead of the 111 handle. Main topics in Asia Iran waves off angry Trump tweets – Reuters According to reporting by Reuters, Iran has dismissed an angrily-tweeted warning from US President Trump that threatening the US would have “dire consequences”. New Zealand PM Peters: might loosen budget rules before next election New Zealand’s acting Prime Minister, Winston Peters, hit wires on Monday, suggesting that while the time may currently not be right, budgetary guidelines could be loosened in the future. China’s State Council announces new measures to boost growth China’s State Council announced fresh measures to step up the country’s economic growth late-Monday, in an effort to counter the trade war threats, Reuters reports. Trump and Mexico both expect NAFTA progress – Reuters According to Reuters, US President Donald Trump and the new Mexican president are both expecting a revival of NAFTA renegotiations, which stalled out several weeks ago ahead of the Mexican federal election. USD/CNY gaps higher, hits 13-month high The Yuan gapped lower as the People’s Bank of China (PBOC) fixed the midpoint rate at 6.7891, the weakest daily fix since July 11, 2017. Key Focus ahead The European session ahead will be dominated by a flurry of manufacturing and services PMI reports from across the Euro area economies, with the German and Eurozone flash readouts closely followed for fresh hints on the bloc’s economic outlook. Both the German and Eurozone manufacturing sector activity is seen slowing down to 55.5 and 54.7 respectively this month. From the UK docket, we have the second-tier Confederation of British Industry (CBI) Industrial Order Expectations that will be reported at 1000 GMT. Meanwhile, the NA session remains data-light, with the US Markit flash manufacturing and services PMIs due on the cards at 1345 GMT ahead of the regional manufacturing gauge and weekly crude oil stockpiles data due to be published by the American Institute of Petroleum (API) at 2030 GMT. At 2245 GMT, New Zealand’s trade balance will be released for the month of June, with the surplus expected to shrink to $ 200 million. EUR/USD: Volatility hit three-month low, eyes range breakout An extended period of low volatility is often followed by a big move in prices (bullish/bearish) and the asset develops a trend in the direction of the breakout. Accordingly, the common currency could see a big move, having spent more than five weeks in a narrowing price range. GBP/USD struggling to hold 1.31 as Brexit weighs on Sterling traders, eyes on US PMI Tuesday’s economic calendar for the GBP/USD is an anemic showing, with the only GBP-focused release being the low-tier CBI Industrial Trends Survey, coming in at 10:00 GMT. Australia Q2 CPI preview – Westpac Analysts at Westpac offer a sneak peek at what to expect from Wednesday’s Australian CPI report slated for release at 0130 GMT. ECB to announce no material new information this Thursday – Barclays The Barclays Research Team is out with its brief preview on the European Central Bank (ECB) monetary policy decision due to be announced this Thursday at 1145 GMT, which will be followed by President Draghi’s press conference at 1230 GMT. US: Expect Q2 advance GDP at 4.3 q/q – Commerzbank Analysts at Commerzbank are out with their estimates on Friday’s second-quarter US GDP release that will be reported at 1230 GMT. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Ponzi-like game spams Ethereum network; ETH goes down belwo critical $460 FX Street 5 years A quiet Asian affair this Tuesday, with a typical risk-averse market environment amid continued Yuan sell-off amid lingering trade tensions while the Asian equity markets witnessed moderate gains, led by the rally in China stocks. China's new fiscal measures to boost the economic growth seemed to lift the local equities. Across the fx board, the Antipodeans surrendered gains and fell back into the red zone, tracking the slide in the Yuan and negative oil prices. Meanwhile, the US dollar extended its broad-based recovery and headed towards the 95 handle, despite negative Treasury yields. 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