May 15: Asian session
Asian shares fell as a stronger yen weighed on Japanese shares and after US equity indices dropped from the record highs. Nikkei 225 is down by about 1%. MSCI Asia Pacific Index declined by 0.3%.
USD/JPY dipped to 101.66, but then recovered to the opening level of 101.87. US 10-year Treasury yields fell to the 6-month low yesterday. Japanese GDP product expanded at the fastest pace in 2 1/2 years (+1.5%) reducing the odds for additional Bank of Japan easing.
AUD/USD pulled down to $0.9375 after having tested $0.9410 yesterday. Gold also consolidates, following the yesterday’s bullish move. Meanwhile, NZD/USD extends the upside, testing $0.8685. New Zealand annual budget was released today and showed the government sees a lot of progress in the economy in recent years.
EUR/USD is trading in the $1.3715 area. French economy stagnated in Q1, while German economic growth was slightly better than expected (+0.8%). GBP/USD edged up a bit to $1.6770 after yesterday’s decline.