Italian political risk

Asian shares edged higher on while the euro gained some respite after hitting five-month lows a day earlier, after U.S. equities advanced on Wednesday, led by retail and technology shares, even as a rise in U.S. 10-year Treasury yields to an almost seven-year high suggested more competition for equities.

Worries about political risks jolted Italian markets and pressured the euro following reports that Italy’s anti-establishment 5-Star Movement and anti-immigrant League may ask the European Central Bank to forgive 250 billion euros of debt as the parties worked to draft a coalition program.

U.S. bond yields have risen after data this week showed a solid rise in U.S. retail sales, suggesting the U.S. economy is on a stronger footing in the second quarter.

The rises in U.S. bond yields strengthened the dollar, which has gained 1.5 percent against a basket of six major currencies so far in May. EURUSD rose 0.1 percent to 1.1822, after having set a five-month low of 1.1763 on Wednesday. USDJPY is trading at the highest level since Feb 18. GBPUSD is straggling within a range around the 200 MA.

In commodities markets, Oil prices firmed on Thursday, with Brent crude creeping ever closer to 80 per barrel, a level not seen since November 2014, as supplies tighten while demand remains strong. Brent crude futures gained 0.2 percent to 79.40 a barrel.

Employment Change/Unemployment Rate for (AUD) and Annual Budget Release (NZD) are the most important economic events for today, which can move the forex market. Moderate to low volatility should be expected for the AUD Dollar, and the NZD Dollar.