July 1: Asian session
Asian shares rose driven by good news from Japan and China. According to Tankan survey, large Japanese companies plan to increase capital spending by 7.4% this fiscal year through March. China’s manufacturing expanded in June at the fastest pace this year with official PMI coming at 51, above the 50 threshold signaling expansion. MSCI Asia Pacific index rose by 0.6%. Japanese Nikkei added more than 1%. USD/JPY is trading on the upside in the 101.30/50 area.
AUD/USD strengthened by 45 pips to $0.9457. As it was widely expected, RBA left cash rate unchanged at 2.50%. The regulator has once again underlined that they expect a period of stability for interest rates. NZD/USD traded higher early in the session, but topped at $0.8770 and gave some gains back. Gold consolidates after spiking to $1332.
EUR/USD is trading a bit on the downside just below $1.3700 after it made a bit increase yesterday. GBP/USD is trading in the $1.7100 area.