Greenback Rises From Yesterday's Lows

The greenback bounced which saw AUD and NZD come under pressure, Antipodean/USD crosses down around 13 pips. Australian PM Morrison announced support for hotspots impacted by COVID-19. Elsewhere The trade surplus widened less than expected as exports missed estimates, while retail sales rose 1.1%, in line with forecasts. RBNZ Deputy Gov Bascand spoke late on Wednesday and said that loose policy will not last forever and noted supply driven price pressures.

• Yen is softer, USD/JPY up 12 pips, final Jibun Bank services PMI fell to 46.5 for the sixteenth straight month of contraction, while composite slipped to 48.8 from 51.0. Meanwhile Asahi reports suggested that PM Suga is likely to call a snap election in the Autumn, after the end of Paralympic games. The report also suggested that the government is considering compiling a new stimulus package ahead of the snap election.
• Yuan stuck to a fairly narrow range, the PBOC fixed above sell-side estimates indicating a preference for a weaker yuan after a brief hiatus yesterday. Elsewhere May Caixin services PMI printed 55.1 from 56.3 previously, composite PMI fell to 53.8 from 54.7. There were reports that US President Biden is planning on amending a US investment ban on companies linked to China's military.