Forex Today: RBNZ’s Orr rescues Kiwi amid weaker Yuan; focus on Powell

Amid a quiet Asian affair on the final trading day of this week, the Kiwi emerged the top gainer across the fx space after the Reserve Bank of New Zealand (RBNZ) Governor Orr downplayed the odds of resorting to an unconventional monetary policy. Further, the Antipodean was also buoyed by moderate risk-on, with the Asian stocks, Treasury yields and US equity futures. However, the NZD bulls lacked vigor after the Yuan fell to its weakest since March 2008 against the US dollar. The Aussie also suffered amid fresh CNY weakness and hit weekly lows sub-0.6750 levels. Meanwhile, the USD/JPY pair stood firmer around the 106.60 level amid falling Japanese price pressures and improved risk appetite.

Among the European currencies, both the EUR/USD pair and Cable remained pressured amid a broadly firmer US dollar heading into the much-awaited key central bankers speeches due later today at the US Federal Reserve’s (Fed) Jackson Hole Symposium.

On the commodities’ front, gold treaded water below the 1500 mark, with the bias leaning towards the downside while both crude benchmarks traded modestly flat after Thursday’s volatile trading.

Main Topics in Asia

NZ: Q2 Retail Sales volumes rose 0.2% – ANZ

White House adviser Kudlow: US and China officials had productive call Wednesday

US State Dept Official: Will aggressively enforce sanctions over Iran tanker – Reuters

European officials draft radical plan to take on US Pres. Trump and American tech companies – Politico

RBNZ Orr: Rate cut reduces probability of having to do more later, Kiwi rallies 0.30%

Japan's Motegi: Results of my trade talks may be discussed on sidelines of G7

WTI ignores latest trade/political headlines, clings to 21-day SMA

N. Korean FinMIn: We are ready for both dialogue and confrontation with US

USD/CNH technical analysis: Hits ten-day after bullish breakout

Fed’s Kaplan: Sees potential for a Fed rate cut at the September FOMC meeting

Fed’s Kaplan: Paying close attention to signals from bond markets

Japan’s Iwaya: S. Korean decision to end intelligence pact regrettable

China's state-backed aluminium producer misses coupon payment on Dollar bond

USDA Official: China far short of soybean purchase after small sale

Key Focus Ahead

A slew of speeches from Fed policymakers will dominate Friday’s macro calendar, with the main focus on the Fed Chair Powell’s speech at the day 2 of the Fed’s Jackson Hole Symposium. Markets eagerly await fresh cues on the US rate cut outlook from Powell, whether he will favor a less aggressive Fed easing amid a stronger US economy or will yield in to Trump’s pressure.

Meanwhile, the European calendar remains data-dry, except for the second-liner UK BBA Mortgage Approvals while the NA docket sees the Canadian Retail Sales, US New Homes Sales and Baker Hughes Oil Rigs Count data.

The following is the list of the Fed and other global central banks’ speakers likely to speak on the sidelines of the Jackson Hole event later today.

1130 GMT Fed’s Bullard

1230 GMT Fed’s Bullard, Kaplan and Mester

1300 GMT Fed’s Mester

1330 GMT Fed’s Harker

1400 GMT Fed Chair Powell

1900 GMT BOE Governor Carney

EUR/USD: Teasing range breakdown ahead of Powell speech

EUR/USD has been restricted to a narrow range of 1.1115-1.1063 since last Friday. The pair is currently probing the lower edge of the trading range. A range breakdown, if any, could trap sellers on the wrong side of the market if Fed's Powell sounds dovish.

GBP/USD retraces from 3-week high while heading into G7, Jackson Hole

GBP/USD trims latest gains as Tories warn PM Johnson. The increasing scope of soft Brexit triggered the pair’s earlier surge. G7, global central bankers’ appearance at Jackson Hole will be followed for fresh impulse.

Gold: Looks south with symmetrical triangle breakdown on 4H

Gold has dived out a symmetrical triangle pattern on the 4-hour chart. The daily chart indicators also favor a drop to $1,480. Essentially, sellers have come out victorious in a tug of war with the bulls.

Jackson Hole: The audiences of Chairman Powell

Federal Reserve Chairman Powell will be addressing two audiences when he speaks to the high life of global banking and finance at the central bank’s annual end of summer conclave in Jackson Hole, Wyoming on Friday.