May 20: Asian session
Asian stocks swung between gains and losses. Nikkei 225 is up by 0.7%. USD/JPY is trading in the 101.50 area after testing 101.10 yesterday. The Bank of Japan begins a 2-day meeting today.
AUD/USD was the biggest mover of the day, extending the decline and testing the levels below the $0.9300 mark. News that S&P may downgrade the Australia's AAA credit rating was a factor weighing on the currency. RBA meeting minutes didn’t bring any surprises to the market, but the RBA’s Assistant Governor Debelle tried to pull the currency lower by saying that “lower capital inflows may result in a lower AUD”. NZD/USD dropped, but found support around $0.8610. Gold price sits unchanged at $1293.
EUR/USD keeps trading in the $1.3700 area. Yesterday the pair tested $1.3734. The ECB officials Daniele Nouy and Luis Maria Linde are scheduled to speak today at the Frankfurt Finance Summit, while Erkki Liikanen speaks in Helsinki. GBP/USD is trading just above $1.6800. Poundawaitsinflationdataat 08:30 GMT.