Forex Today: WTI conquers $ 70, US dollar takes a breather ahead of a light session

The US dollar witnessed a softer start to the week across its main competitors, as the dust settles over the US non-farm payrolls aftermath. Therefore, a recovery theme was seen across most majors, but the Aussie bucked the trend amid mixed Australian macro news and increased nervousness ahead of the Australian budget due tomorrow. The Kiwi, on the other hand, remained well bid above the 0.70 handle.

The USD/JPY pair staged a minor comeback in tandem with the Japanese stocks and regained the 109 handle while a rally in oil prices also helped lift the overall market sentiment and weighed down on the safe-haven Yen. The WTI futures reclaimed the $ 70 mark for the first time since November 2014 amid looming Iran concerns over a nuclear deal with the US.

Main topics in Asia

BoJ maintains JGB buying amounts in regular operation

The Bank of Japan (BoJ) announced no changes to its Japanese Government Bond (JGB) buying in regular operation today.

NAB business conditions index hits record high in April

The National Bank of Australia (NAB) business conditions index increased by 6 points to record high of +21 index points in April, the data released a few minutes ago showed. 

Iran’s President Rouhani: ‘America is making a mistake if it leaves the nuclear accord’

In a speech carried live by state television on Sunday, the Iranian President Hassan Rouhani noted that Iran was prepared with plans to respond to any move by the US President Trump on the 2015 nuclear agreement.

US oil futures rise above $70 for the first time since November 2014

The WTI oil futures rose to $70.22/barrel in Asia - the level was last seen in November 2014 on fears President Trump is set to walk away from the 2015 Iran deal (set to expire on May 12).

Australia PM Turnbull flags tax cuts, infrastructure spend in federal budget

After unveiling a part of an A$24.5 billion, 10-year road and rail infrastructure package of the budget, the Australian Prime Minister Malcolm Turnbull promised tax cuts for lower income earners and flagged a multibillion-dollar infrastructure spend, Reuters reports.

Key Focus ahead

Following a heavy FOMC/NFP last week, traders brace for a quiet start to the EU calendar this week. The UK is on a May Day holiday while the Euroland has the second-liner retail PMI and Sentix Investor Confidence data on the cards. Also, of note remains the German factory orders and Swiss CPI data today, followed by a speech from the Bank of Canada (BOC) Governing Council member Lane.

Ahead of the US open, we have the Federal Reserve (Fed) board member Bostic’s speech, which could hog the limelight amidst a data-empty US docket. In the American afternoon, another Fed official, Barkins, is due to speak at George Mason University, in Virginia.

EUR/USD moves sideways amid oversold readings

The EUR/USD pair will likely trade in the sideways manner below 1.20 and could witness a minor corrective rally, courtesy of oversold conditions.

GBP/USD looking to stage a correction from 1.35 as the BoE's interest rate call looms

Monday is a quiet affair for the Sterling with little on the economic calendar, reflecting most of the upcoming week, until Thursday hits. Thursday brings the Bank of England's (BoE) May rate call, a highly-anticipated monetary policy meeting for the UK.

The week ahead: plenty going on - Rabobank

Analysts at Rabobank offered their outlook for the week ahead.

All eyes will be on this week’s US CPI report

Following a very solid, but softer than expected jobs report; the USD remains in an advantageous position but perhaps short-term speculators are a bit oversubscribed heading into the week.