FX Update: Narrow ranges have been seen once again
FX Update: Narrow ranges have been seen once again on the day so far, as the London interbank takes to its collective seat. EUR-USD has settled back above 1.1550 after posting a six-week low yesterday at 1.1529. AUD-USD has lifted back above 0.7400 on route to edging out a two-session high of 0.7405. The RBA left its cash policy rate at 1.50% today, as had been widely anticipated, and while trimming its CPI outlook for this year, said it now expects inflation to rise more than expected in 2019 and 2020. USD-JPY has remained directionally challenged, holding in a narrow range in the lower-to-mid 111.0s. The 10-year JGB yield nudged back above 0.1%, rising today after dipping over the previous two sessions. In data, Japan's preliminary June leading index came in at 105.2, fractionally below the 105.3 median forecast, while Japan's June cash earnings rose 2.8% y/y, above the median forecast for 1.7% y/y. Wall Street closed higher and most stock markets in the Asia-Pacific region gained, buoyed by a mix of corporate earnings and higher oil prices, although concerns about trade protectionism remain in mix of factors forming sentiment. The PBoC set the USD-CNY reference rate slightly lower today, at 6.8431, comparing to 6.8513 yesterday.