Forex Today: Asia sees tight ranges ahead of UK jobs, EZ GDP & Fed minutes

A cautious tone was prevalent across the fx space in Asia this Wednesday, as the dust settled over the US retail sales aftermath. The US dollar took a breather after a volatile session experienced a day before, leaving most majors wavering in tight trading ranges. However, the Aussie emerged the biggest gainer, up +0.15% at 0.7830 so far, buoyed by higher oil prices and upbeat Aus fundamentals, vi., cashless retail spending and MI leading index numbers.

Main topics in Asia

S&P maintains Brazil’s credit rating at BB; ups outlook to Negative

The US-based ratings agency, Standard & Poor’s (S&P), published its latest credit rating review report on the Brazilian economy.

Australia: Cashless retail spending increased 7.3% in July - NAB

Analysts at NAB points out that the NAB Cashless Retail Sales Index shows that the value of cashless retail spending increased at a yearly rate of 7.3% in July (in seasonally adjusted terms), broadly unchanged from the previous month.

BOJ trims purchases of 5-10 yr JGBs

The Bank of Japan [BOJ] reduced the purchases of 5-10 year Japanese Government Bonds [JGBs] to JPY 440 billion from the previous figure of JPY 440 billion. 

Australia’s Q2 wage price index bang on expectations

Australia’s Wage Price Index for the second quarter came in at 0.5% q/q versus 0.5% expected and same as that booked previously. 

China increases US Treasuries holdings for the 5th straight month

According to Treasury Department data released late-Tuesday, China reclaimed its spot as the world's biggest holder of the US Treasuries, having increased its holdings of Treasuries for the fifth consecutive month, Bloomberg reports.

Key Focus ahead

We have an eventful trading session ahead, with the UK jobs data and Eurozone flash GDP report to fill in the EUR calendar, while the NA session offers the US housing starts and building permits data ahead of the EIA crude inventory data release and Fed monetary policy minutes.

GBP/USD: A test of 1.2900 likely on solid UK jobs?

The GBP/USD pair extended its overnight consolidative mode into Asia, having stalled its tepid American recovery near 1.2880 levels, as investors turn wary ahead of the UK labour market report and FOMC minutes due later today.

UK jobs: Unemployment rate could drop to 4.4% - HSBC

HSBC analysts offer a sneak peek on what to expect from the UK labour market report, which will be reported at 0830GMT later today.

Eurozone flash GDP: We expect the second reading to be unchanged at 0.6% q/q - HSBC

“The preliminary estimate of Eurozone GDP growth for Q2 2017 was 0.6% q-o-q (2.1% y-o-y), in line with consensus expectations.”

FOMC minutes preview - Nomura

Analysts at Nomura offered their preview for the FOMC minutes coming up in the US session tonight.