May 28: Asian session
Asian shares rose as US data added to evidence a recovery in the world’s largest economy is intact. The orders for US durable goods unexpectedly increased in April and consumer confidence perked up in May. The MSCI Asia Pacific Index gained 0.5%. Japanese Nikkei 225 rose by 0.5%.
USD/JPY keeps trading just below 102.00 after testing 102.14 yesterday. AUD/USD remains in a tight $0.9250/70 range, slightly below the yesterday’s $0.9280 peak. NZD/USD was a big mover, falling from $0.8570 to $0.8540. Kiwi was pressured by the big decline in business confidence (53.5 in May vs. 64.8 in April). Gold price plummeted by more than 300 pips yesterday, falling to the lowest level since early February. Rise in the US equities curbed demand for the precious metal as an alternative investment. Today XAU/USD opened with a bearish gap and consolidates around $1264.
EUR/USD edged down to $1.3630. GBP/USD is at $1.6800 after declining yesterday.