The US dollar is displaying a softer profile today against all G10 currencies, except for the Swedish krona. The greenback has maintained its momentum, pushing above 160 level against the Japanese yen.
Equities are experiencing pressure today, while gold has found support below $2300 and is trading higher after declining in three of the past four sessions. August WTI crude oil has fluctuated between $80 and $82 for the past five sessions and appears poised to move higher, having not surpassed $82 since late April.
Asia Pacific Markets
Two key developments are notable in the Asia Pacific markets: the dollar holding above JPY 160 and the continued decline in China's 10-year yield to a fresh 20-year low near 2.20%. Japanese officials have indicated readiness to intervene in the market if necessary. Tomorrow, Japan will report May unemployment figures and Tokyo's June CPI.
After testing JPY 160 for the previous three sessions, the dollar climbed above it in the European morning yesterday, peaking slightly above JPY 160.80 in North America. It has maintained yesterday's high so far today, consolidating above JPY 160.30.
Despite a higher-than-expected monthly Australian CPI, which increased market expectations for a rate hike, the Australian dollar remained within its one-cent range.
European Markets
The euro's break below its June low did not trigger further selling. After setting the low, the euro rebounded to around $1.0695 before consolidating in a narrow range during the North American afternoon. It is testing the $1.07 area in the European morning and may extend its recovery in North America today, with resistance around $1.0720.
Sterling briefly fell below $1.2620 yesterday for the first time in five weeks, touching the lower Bollinger Band. It made a slight new low today, just below $1.2615, but has since recovered to around $1.2650, with nearby resistance in the $1.2670 area.
American Markets
Today's slew of US economic data includes weekly jobless claims and May durable goods orders.
The US dollar approached the lower end of its range against the Canadian dollar on Tuesday, reaching CAD 1.3625. It has not closed below CAD 1.36 since April 5 and is consolidating today after making a marginal new high.