Forex Today: Kiwi sold-off aggressively in Asia, EZ PMIs in focus

Forex today in Asia was mainly driven by the extension of broad USD sell-off, as investors remained cautious in anticipation of a new Fed Chair likely to be appointed by Trump this week. Meanwhile, most major traded in tight ranges, although the Kiwi came under aggressive selling pressure during mid-Asia, following comments from the NZ PM designate Ardern, calling for review and reforms on the Reserve Bank Act.

Among other related markets, gold extended its recovery mode amid moderate risk-aversion, while the Asian equities traded little changed. Oil prices also steadied, awaiting fresh impetus from the weekly crude supplies report.

Main topics in Asia

IEA: Coal, oil to lead energy demand-growth in Southeast Asia to 2040

In its latest report published on Tuesday, the International Energy Agency (IEA) revealed that Southeast Asia will become a key driver for energy demand globally as its economy triples in size and its total population grows by a fifth.

Australia likely to introduce regulations for Bitcoin

Kitco is out with a story on Tuesday, suggesting that Australia is next in line to regulate the cryptocurrency markets, following China and Russia.

S. Korea, US, Japan kick off 2-day missile tracking drill – S. Korea military

South Korea’s military said on Tuesday, South Korea, the United States and Japan started a two-day missile tracking drill, as they prepare to combat any missile or nuclear threats from North Korea, Reuters reports.

New Zealand PM - To review & reform RBNZ act

Comments from New Zealand Prime Minister (PM) Jacinda Ardern crossing the wires via Reuters…

Key Focus ahead

In the day ahead, the flash manufacturing and services PMI reports from both Euro area and US are likely to emerge the main market movers, in absence of key first-tier macro news globally. Besides, the American Petroleum Institute (API) will report the weekly crude stockpiles data later in the American session, which will be closely watched by oil and CAD traders.

EUR/USD: 1.1730 support still on sight ahead of EZ PMIs

Fresh bids emerged for the spot once again near 1.1730 - key support, allowing a tepid recovery in EUR/USD, now extending into Asia amid persistent USD softness, as focus shifts towards a fresh batch of Euro area flash manufacturing PMI reports for fresh trading impetus.

GBP/USD - 10Y US-UK yield spread rises in a GBP-negative manner

GBP/USD remained bid above 1.32 handle in Asia, but the bullish move struggled to gather pace. The GBP bulls are likely to wait on the sidelines ahead of tomorrow's Q3 GDP release. 

ECB to leave open whether it will extend QE after September - UBS

UBS Analysts out with their expectations from the ECB monetary policy meeting due on the cards this Thursday.

Kevin Warsh for Fed chair? - WSJ

The Wall Street Journal has reported that Vice President Pence met with Kevin Warsh about the the Fed position. Warsh is tipped to be pro looser regulation and tax cuts.