ASIA UP, GOLD SHINE WITH HELP OF YIELDS, OIL SUBDUED

ECONOMY

On Tuesday , Asian stocks were left adrift as expectations of more dovish talk from the Federal Reserve pushed down Treasury yields and the dollar, while lifting gold to six-year peaks.
Equity investors are waiting to see if anything will come of Sino-U.S. trade talks later this week.
U.S. President Donald Trump is slated to meet one-on-one with at least eight world leaders at the G20 summit in Osaka, including China’s President Xi Jinping and Russian President Vladimir Putin.
There are no less than five Fed policy makers speaking on Tuesday, including Chair Jerome Powell, and markets assume they will stick with the recent dovish message.
Mexico has deployed almost 15,000 soldiers and National Guard in the north of the country to stem the flow of illegal immigration across the border into the United States, the head of the Mexican Army said on Monday.
Tax cuts planned by Boris Johnson, the leading candidate to become Britain’s next prime minister, could cost as much as 20 billion pounds ($25 billion) a year, according to calculations from the Institute for Fiscal Studies think tank.

Yields on 10-year Treasuries have dived 120 basis points since November and, at 2.01%, are almost back to where they were before Trump was elected in late 2016.

The speed and scale of the latest decline has seen the dollar fall for four sessions on a row against a basket of other currencies to stand at a three-month low of 95.980. USD DXY is now looking it likely will break through the March low of 95.76 and below there 95.0.
The euro has climbed to its highest in three months and was last holding firm at $1.1403, within striking distance of the March top of $1.1448.
Safe-haven yen, the dollar has hit its lowest since the January flash crash and was last at 107.33 yen.
The People's Bank of China has set the Yuan reference rate at 6.8580 vs Monday's fix of 6.8503.
AUD/USD pair is trading near a fortnight top while quoting 0.6966 amid the early Asian session on Tuesday. Trade developments, RBA’s Bullocks will be followed for fresh impulse.

The pullback in the dollar combined with lower yields globally has put a fire under gold, which touched a six-year top overnight. The metal is up 12% since early May at $1,1426.39 an ounce, with the next target the 2013 top of $1,433.
Oil prices consolidated after rising sharply last week in reaction to tensions between the United States and Iran. Brent crude futures firmed 8 cents to $64.94, while U.S. crude was unchanged at $57.90 a barrel.