Session Recap: USD month end in Asia slightly higher in the back of soft Aussie

FXstreet.com (Barcelona) - Slow end of the month session in the Asia-Pacific, with USD slightly advancing across the board mostly on the back of weaker commodity currencies such as Aussie and Kiwi, but just marginally given current Euro and Yen resilience. USD index has barely held above the 83.00 round level, while AUD/USD has remained capped below the 0.97 level, and EUR/USD below the 1.3050.

Local share markets started with a bid tone that has finally eased a bit the closer it gets to end of session, off the weekly lows from yesterday after a second losing week in case of Nikkei index, that last trades up +1.17% for the day so far, but down -5% for the week. Shanghai index is about break even for the day at +0.03%, with Hang-Seng down -0.18%, Kospi up +0.27% and Australian ASX also up +0.34%. Gold is higher at $1418, off fresh 2-week highs at $1422, while Oil is marginally higher above the $93 mark.

Plenty of positive data from Japan today that had almost no impact in Yen, with monthly Industrial production almost doubling market expectations reducing the decrease on yearly basis, and core Tokyo CPI improving slightly as well, but nationwide y/y remaining at -0.4%. Better than expected ANZ Business confidence in NZ at 41.8 from previous 32.3, and Australian Private sector credit in line with expectations at +0.3% m/m.

Main headlines in the Asian Session:

EUR/USD notches another day of gains to close above 1.3000

EUR/JPY continues to tread water below 132.00

New Zealand Terms of Trade Index up to 4.1% in 1Q from -1.2%

USD/JPY holding above key bid line 100.70 ahead of Tokyo CPI

Japan National Consumer Price Index (YoY) increase to -0.7% in Apr from -0.9%

Japan Apr Overall Household Spending (YoY) falls to 1.5% vs 5.2%

Japan Industrial Production for April (preliminary): 1.7% m/m (vs. expected 0.6%)

Japan’s finance minister Aso: Not considering postponing Japan sales tax hike

Commodities Brief: Precious metals catch a bid as USD slides

New Zealand RBNZ Business Confidence up to 41.8% in May from 32.3%

Australia Apr Private Sector Credit (MoM) up to 0.3% vs 0.2%

MNI China Business Sentiment Indicator for May falls to 56.7 (vs. 58.5 prior)

AUD/JPY firm bounce off 97.00 support, sets eyes on 98.30

EUR/AUD off fresh 1.5-year highs below 1.35

IMF: 2% inflation is possible in Japan near to medium term

Federal Reserve head Bernanke speaking on Sunday

Aussie advances capped below 0.9700

IMF’s Lipton: Yen’s depreciation leaves it moderately below what would be consistent with long-term fundamentals

‘Pennant’ pattern break out on EUR/USD targets a move north of 1.3200