Forex Today: Kiwi rallies hard in Asia, German/ Eurozone PMIs in focus

The Antipodeans emerged as the biggest beneficiary of subdued US dollar trades seen in the Asian session on the final trading day of this week. The market sentiment got a lift from the latest reports that the US is considering resuming trade talks with China. The Kiwi was the top gainer, despite mixed New Zealand economic releases while the Aussie follow suit. USD/JPY traded on the front foot, although held within a tight range near 110 handle. The pound consolidated post-BOE gains while the Euro managed to stay above the 1.1600 levels.

On the commodities front, both crude benchmarks rallied over 1% ahead of the key OPEC meeting while gold prices on Comex traded little changed near $ 1270 mark amid looming US-China trade concerns.

Main topics in Asia

ECB’s Draghi: Debt relief will improve Greek debt sustainability in the mid-term

EU finance ministers reach a debt relief deal for Greece – Reuters

Japan Core CPI still not even half-way to BoJ’s 2% target – Reuters

Japan’s ruling party to hold leadership vote in September – Japan Press

US weighs resuming China talks – Bloomberg

China slaps anti-dumping tariffs on styrene from South Korea, Taiwan and US – Reuters

IMF: Trade tensions are the biggest risk for the Eurozone – CNBC

Asian stocks fall back in worst week since March, Japan’s Nikkei 225 trying to keep ¥22,500

Key Focus ahead

We have a relatively busy EUR macro calendar, with a raft of flash manufacturing and service PMI reports from across the Euro area economies to offer fresh trading impetus to the EUR, GBP traders. Meanwhile, from the UK docket, we have the Bank of England (BOE) quarterly economic bulletin, which is likely to have a negligible impact on the pound.

In the NA session, the Canadian CPI and retail sales data are the key highlights, which could offer some respite to the CAD bulls should the data come in upbeat. Also, in focus remains the US manufacturing and services PMI releases by Markit ahead of the US Baker Hughes US Oil Rig Count data.

EUR/USD gathers itself for another push from 1.16 ahead of EU PMIs

GBP/USD: Bullish outside-day reversal above 1.3270

Canada: Key economic events ahead – TDS