Forex Today: AUD dumped on Aus GDP miss, UK IP ahead

A big miss on the Australian Q3 GDP slammed the Aussie in the Asian session, with the antipodean emerging the weakest across the fx board. The yen also tumbled in wake of BOJ deputy governor Iwata’s dovish comments. While broad based US dollar consolidation remained the underlying theme so far this session.

We have a data-light EUR calendar, kicking-off with the German industrial figures, followed by the UK industrial and manufacturing production. Moving onto the North American, the main risk event for today remains the BOC rate statement. While the US JOLTS job openings and EIA crude oil inventories data will be also reported.

Main topics in Asia

Australia's Q3 GDP: Huge miss on expectations, first contraction in 5 years

Australia's Gross Domestic Product (QoQ) for Q3 came at -0.5% vs 0.3% exp and 0.5% last, while the yearly reading registered 1.8% vs 2.5% exp and 3.3% last. 

UK current account gap revised lower

UK’s Office for National Statistics (ONS) revised the current account gap lower to 6% of GDP from the previously reported figure of 7% of GDP.

Asian stocks ticked up in lackluster trade

Stock markets across Asia ticked higher in lackluster trade on Tuesday in the absence of a major market moving, macroeconomic events.

Goldman Sachs slashes Indian growth estimates amid currency crackdown - BBG

Bloomberg reports that Goldman Sachs economists, led by Nupur Gupta, cut their estimates for inflation-adjusted output for Q4 2016, citing a sharper-than-initially-estimated fall in consumer sentiment and industrial production amid the demonetization drive.

Key focus for the day ahead

EUR/USD flat-lined around 1.0720, German data eyed

The EUR/USD pair extends its Asian side-trend into early European trading, as the bulls continue their struggle to regain control amid resurgent USD demand across the board.

BOJ’s Iwata: BOJ may need to expand asset buying to push down yields

Additional comments flowing in from the BOJ deputy governor Iwata, as he continues to speak on the bank’s monetary policy, via Reuters.

Germany: Industrial production numbers awaited – Danske Bank

Research Team at Danske Bank, suggests that it is a quiet day in terms of data releases and market participants are likely to be in some state of wait-and-see mode ahead of the ECB meeting tomorrow.

China: Outlook for 2017 – Deutsche Bank

Research Team at Deutsche Bank, suggests that the Chinese government faces a policy dilemma in 2017 and DB believes it would be able to achieve the 6.5% growth target with strong fiscal easing in 2017.