Aussie and kiwi recover earlier losses while the yen is on the back foot now
It’s all about the risk mood as we approach European trading today as markets got sent for a wild roller coaster ride on conflicting trade headlines ahead of talks in Washington.
The yen gained early on as USD/JPY moved lower towards 107.00 before recovering to a high of 107.77 and then settling close to 107.50 currently amid the risk flip flop.
The aussie and kiwi both weakened in Asia Pacific trading as trade headlines were more negative initially before recovering to near session highs currently with AUD/USD bouncing from 0.6710 to 0.6750 while NZD/USD moved up from 0.6280 to 0.6315.
Overall risk sentiment remains more cautious now with Treasury yields and US futures near flat levels as we begin the European morning. The dollar is still holding somewhat weaker and trades narrowly against the euro and pound.
Looking ahead, the main focus of markets will be on trade talks today so expect that to remain the hot topic that will potentially create more swings in the hours to come.