May 8: Asian session
NZD/USD was the biggest mover of the day: the pair dropped by 100 pips to 0.8360, but then recovered to 0.8400. RBNZ Governor Wheeler said at the news conference that kiwi is overvalued and that there is scope for a rate cut. He also announced that RBNZ had, in fact, sold New Zealand dollars as an intervention strategy to ‘take the top of the rallies’. AUD/USD recovered to $1.0190 after having tested a fresh two-month low of $1.0160. Aussie found support as Chinese trade surplus increased.
USD/JPY is trading range bound a bit below the 99.00 mark. EUR/USD strengthened to $1.3090 on speculation that ECB is looking at buying bad loans from Southern European nations. GBP/USD is consolidating below $1.5500. USD/CAD recovered to 1.0050.