July 10: Asian session
US dollar weakened amid bets US interest rates will remain near zero this year after minutes of the Fed’s most recent meeting failed to offer clues on the timing of increases. Asian stocks outside Japan rose as investors speculated that increasing Chinese exports and imports signaled growth in the world’s second-largest economy is stabilizing. Japanese core machinery orders contracted by 19.5% in May and the nation’s tertiary industry activity came lower than expected. Japanese Nikkei 225 is down by 0.2%. USD/JPY slid to 101.50.
AUD/USD had a volatile session because of the mixed bag of Australia labor market data. Number of employed people increased by 15.9K in June (forecast: 12.3K, prior: -5.1K). Meanwhile, June unemployment rate rose to 6.0% (forecast: 5.9%, May figure has also been revised up to 5.9%). The Aussie dollar initially jumped to $0.9460 but then rapidly retraced to $0.9410/15. Disappointing China trade data pulled the pair lower to the $0.9360 area. NZD/USD trades in a narrow $0.8835/10 range.
EUR/USD is trading a bit on the upside, just below $1.3650. GBP/USD is little changed in the $1.7155 area.