Flash: AUD and NZD slump on Equity rout - OCBC Bank

FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that with global equities in a rout, AUD and NZD slumped across the board with the JPY also pulling higher against its peers, leaving the dollar mixed by the end of the global day.

He adds that earlier in the session, the AUD, still smarting from the RBA statement the previous day, was further sabotaged by a disappointing GDP reading and note that the pair dropped below 0.9500 early on Thursday in Asia. He sees that the greenback lost inherent support following the weaker than expected May ADP number outweighing the better than expected May non manufacturing ISM. Meanwhile, Ng notes that the Fed’s Beige Book was a non-mover and failed to generate any lift for the dollar. He writes, “Elsewhere, yen bears were disappointed after PM Abe’s address failed to spark any renewed dovish implications while the subsequent global equity weakness energized the yen further as investors took risk off the table. Today, expect potential volatility out of the ECB meeting, especially if Draghi’s press conference broaches the issue of potential negative interest rates again.”