ASIA session review 27.06.2013: Dollar keeps its grounds

Data released (actual, consensus, previous):   

01:00    NZ    NZD    RBNZ Business Confidence (Jun)    50.1%        41.8%        

04:30    JP    JPY    All Industry Activity Index (MoM) (Apr)    0.4%        -0.3%    

07:55    DE    EUR    Unemployment Change (Jun)    -12K    8K    17K    

07:55    DE    EUR    Unemployment Rate s.a. (Jun)    6.8%    6.9%    6.8%

08:30    UK    GBP    Current Account (Q1)    £-14.512B    £-11.800B    £-13.617B

08:30    UK    GBP    Gross Domestic Product (QoQ) (Q1)    0.3%    0.3%    0.3%        

08:30    UK    GBP    Gross Domestic Product (YoY) (Q1)    0.3%    0.6%    0.6%

09:00    EMU    EUR    Economic Sentiment Indicator (Jun)    91.3    90.3    89.5

09:00    EMU    EUR    Consumer Confidence (Jun)    -18.8    -18.8    -21.9

The US dollar Index halted a six-day advance after Federal Reserve Bank of Richmond President Jeffrey Lacker said yesterday the Fed isn’t close to cutting bond holdings accrued in its quantitative-easing program.

The pound fell to a three-week low against the dollar and gilts rose as a report showed Britons’ disposable income plunged the most in 25 years in the first quarter and gross domestic product matched an initial estimate.

Sterling weakened for a second day against the euro and US dollar . U.K. GDP expanded 0.3% in the three months through March after contracting 0.3% in the final three months of 2012, the Office for National Statistics said today in London.

The yen fell at least 0.3% versus all 16 of its major peers, paring monthly gains, as Asian stocks rose.

EURO:

The euro rallied from near a three-week low against the dollar as European Union finance chiefs struck an agreement on how to deal with failing banks.

EUR/USD broke under $1.3000 and challenged $1.2980 (initial support) before bounced back above the figure. Below support comes at $1.2960 (Apr 24 and Jun 3 lows) и $1.2840 (May 29 lows). Key support remains at $1.2800 (May 17 low). Resistance comes at $1.3060 (hourly highs and Jun 24 lows). Above gains may extend to $1.3160 (Jun 20 lows), then - at $1.3255/60 (Friday’s high) and $1.3300 (Jun 6 high).

POUND:

The pound remains under pressure for a second day against the euro and US dollar . U.K. GDP expanded 0.3% in the three months through March after contracting 0.3% in the final three months of 2012, the Office for National Statistics said today in London.

GBP/USD has pierced under  $1.5280 (Jun 4 lows) and targets  $1.5140 (May 31 lows) and $1.5000 (May 29 lows). Initial resistance comes at $1.5450/60 (Friday’s hourly highs), then - at $1.5530 (Jun 21 high), stronger - near $1.5680 (Jun 19 highs).

YEN:

The yen has gained 2.7% to the greenback this month.

The yen strengthened for a second day with a host of U.S. central bankers scheduled to speak this week after two Federal Reserve presidents yesterday emphasized that policy remains accommodative.

USD/JPY holds near the  Y98.80 resistance (50% Fibo of the Y103.80- Y93.80 decline). Above resistance comes at Y99.90/00 (61.8%). Initial support comes at Y97.20, with a break under targets Friday’s lows near Y96.90.

DATA AHEAD:

At 12:30 GMT USA report Initial Jobless Claims, along with Personal Income/Spending for May.

At 14:00 GMT Pending Home Sales for May come.

At 22:45 GMT New Zealand reports May Building Permits.

At 23:01 GMT UK reports Jun Gfk Consumer Confidence.

At 23:30 GMT Japan releases its inflation data, Unemployment Rate and Industrial Production.

Link>>