Forex Today: AUD extends rebound post-China CPI, ECB Draghi in spotlight

Forex today was driven by a corrective slide in the US dollar against most of its majors, while upbeat Chinese CPI figures combined with higher oil prices and Asian equities lifted risk sentiment. Risk-on trades helped extend the rebound in the Antipodeans, with the Aussie emerging the strongest across the fx board. The yen regained footing, following BOJ’s Summary of Opinions of the April meeting and a dozen of Kuroda headlines.

Next of relevance for the fx markets remain ECB President Draghi’s speech due at 1200GMT on the topic - "Exchange of views with the President on the impact of monetary policy of the European Central Bank at Dutch House of Representatives in The Hague, Netherlands. On the data front, the EUR docket remains data-light, while the NA sesson has little to offer, in terms of economic releases, with the US import prices and Federal Budget balance on the cards. Besides, speech from Fed’s Rosengren will be also published in the American session.

Main topics in Asia

Trump: "You're fired" - FBI Director James B. Comey has been dismissed

White House spokesman Sean Spicer just announced that FBI Director James B. Comey has been dismissed by the US president Donald Trump. 

New Zealand Electronic Card Retail Sales (MoM) up to 1.1% in April from previous -0.3%

BOJ Meeting Summary – policy sustainability could be an issue next year

The ‘summary of the opinions’  of the Bank of Japan (BOJ) April monetary policy meeting released this Wednesday morning showed the need to maintain current accomodative policy due to downside risks from overseas…’

China's April CPI y/y upbeat, but PPI disappoints

China's Consumer Price Index (MoM) (April) came at 0.1% vs 0% exp and -0.3% last, while Consumer Price Index (YoY) (April) was 1.2% vs 1.1% exp and 0.9% last.

BOJ’s Kuroda: Changes in BOJ bond buying amount will not have implication on BOJ policy stance

Bloomberg reports headlines from text of a speech the Bank of Japan (BOJ) Governor Kuroda gave at research Institute of Japan earlier today.

Key Focus ahead

EUR/USD: Struggle with 1.0900 extends, ECB Draghi eyed

Heading into the early European trading, the spot maintains the bid tone and awaits fresh impetus for next direction.  All eyes remain on the ECB President Draghi’s speech amid a data-light EUR calendar.

GBP/USD Forecast: possibly a range trade ahead of BoE Super Thursday

With market focus on BoE's Super Thursday, investors seemed reluctant to carry big bets heading into the key event risk. 

RBNZ to keep policy steady – Goldman Sachs

Economists at Goldman Sachs brings us a brief preview of the RBNZ monetary policy decision due later on Wednesday at 2100GMT.