Trading day in one post 04.07.2017

Asian bourses were mixed on Tuesday after North Korea launched a missile, with the Reserve Bank of Australia's interest rate decision due later.

South Korea's Kospi edged down on the news, but quickly recovered to trade at near previous levels. The safe-haven yen strengthened slightly on the news to trade at 113.11 to the dollar, but later receded to trade at levels seen before news of the missile launch. The greenback had traded at its highest level in seven weeks against the yen overnight.

Australia's benchmark S&P/ASX 200 index jumped 1.6 percent. Over in China, the Hang Seng Index edged higher by 0.04 percent, but markets on the mainland traded lower. The Shanghai Composite was off by 0.21 percent.

Shares of automakers in Japan traded higher despite the overall decline in U.S. auto sales for the month of June. Among individual brands, Toyota said sales increased by 2.1 percent on year. Nissan also reported a 2 percent rise in sales. Toyota shares were up by 2.15 percent and Nissan shares rose 1.43 percent.

Economic data:

11:30 UK- Construction PMI
12:00 EU - PPI
15:30 EU - ECB's Praet Speaks
16:30 Canada - RBC Manufacturing PMI

CAD - Due to speculation about interest rate hikes by BoC that will happen earlier than expected (by the end of 2017), CAD received support and maintained its position even with the fall in oil prices. We remain positive towards CAD.

JPY - The yen was the strongest currency during the Asian session. The Japanese currency shift for investors after the investors got support after it became clear that North Korea again launched a ballistic missile. Longa is more likely in the yen.

AUD -  The Australian dollar loses its position after initially rising due to good economic data by Australia. The RBA left the base interest rate unchanged, which had a negative impact on AUD.

EUR - Euro was trading lower during the Asian trade session. ECB policymakers were wary about indicating at its July meeting that it was nearing a roll back of some easing measures. A continued easy-money environment would weigh the euro.

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