May 27: Asian session
Asian stocks climbed for a fourth day. MSCI Asia Pacific Index added 0.2%. Nikkei 225 is up by 0.65%. USD/JPY stays just below 102.00. Japan’s currency dropped as demand for haven assets declined on speculation that policy makers globally will add to measures supporting growth and before Bank of Japan Governor Haruhiko Kuroda speaks at a conference tomorrow.
Commodity currencies are in demand on Tuesday. AUD/USD strengthened after four days of a sideways trade, hitting a session high of $0.9275. However, the selling pressure remains pretty high above $0.9260. NZD/USD moved up by around 35 pips to $0.8580, but gave some gains back. Gold loses ground, weakening below $1,288.
EUR/USD rose to $1.3668. US dollar is rather weak before data today forecast to show durable goods orders fell. All in all, euro was set for its biggest monthly drop since January after ECB President Mario Draghi signaled yesterday policy makers are ready to expand stimulus should inflation slow. GBP/USD edged up to $1.6869.