Forex Today: Aussie cheers risk reset; eyes on Treasury yields, US data

Here is what you need to know on Friday, August 16th:

- The risk sentiment somewhat improved on Friday amid US President Trump’s optimistic comments on trade while upbeat US Retail Sales data offset recession fears.

- Markets ignored a weaker Yuan fix and looming Honk Kong concerns, as Treasury yields and US equity futures recovered. The Asian equities traded mixed, capping the upside in USD/JPY.

- USD/JPY traded firmer above 106.00, as the US dollar held onto its overnight gains, Japan's 10-year yield hit three year low. Gold eased below $ 1520 while oil prices rallied hard amid risk reset.

- The Aussie emerged the strongest while the Swiss Franc was the weakest heading into Europe.

- Brexit: 50 members of the opposition Labour party are ready to join Tory rebels to stop no-deal Brexit. UK FinMin Javid will travel to Berlin to meet the German counterpart Scholz and discuss Brexit deal.

- UK Retail Sales unexpectedly rose 0.2% m/m in July, suggesting that the UK economy is in much better shape than feared. GBP/USD regained 1.2100 while EUR/USD hovered around 1.1100 after ECB Rehn said that the ECB stimulus may beat expectations.  

- Cryptocurrencies consolidated after Thursday’s rout. Bitcoin battles 10k mark.