May 24: Asian session
USD is feeling strong ahead of US data forecast to show orders for durable goods rose in April, diminishing the need for monetary stimulus.
EUR/USD is trading in the $1.2930 area after it reached $1.2956 yesterday. Euro’s supported as German data due at 08:00 GMT may show that business confidence bottomed out after a 2-month decline. In addition, German GDP will be published at 06:00 GMT. GBP/USD is trying to hold around $1.5100 after it recovered from $1.5013 hit yesterday.
USD/JPY slid to 101.25. Japanese stocks turned negative on Friday after falling by 7.3% yesterday (the largest 1-day drop in 2 years). The Bank of Japan Governor Haruhiko Kuroda said the bank had no specific targets for stock prices and the level of the yen and will not comment on day-to-day moves.
Commodity currencies were off lows, but their outlook remained shaky given worries about Chinese growth. Aussie and kiwi are trading on the downside: AUD/USD is below 0.9700, NZD/USD is around $0.8100. AUD and NZD were lower against the yen as stock declines worldwide spurred investors to sell higher-yielding assets. New Zealand’s trade surplus came below the forecast (157M vs. 495M expected). USD/CAD is trading above 1.0300 after it has almost reached 1.0400.