Forex Today: AUD jumps on Aus jobs big beat, EZ PMIs, CB decisions eyed

The AUD/JPY cross was a bigger mover in Asia, benefiting from solid Aus employment data and stabilizing Treasury yields. The Antipodeans traded mixed, with the Aussie cheering a big beat on the Aus jobs report, while the Kiwi lost ground on stalled USD selling and downbeat NZ Treasury’s half-year economic & fiscal report. The Chinese data dump was broadly ignored by markets.

The Asian equities traded with moderate losses, while the precious metals extended its post-FOMC rebound, as sentiment remains mixed ahead of the key central banking events scheduled for the session ahead.

Main topics in Asia

Fed's Brainard: It's a great time to find a job in the US

Lael Brainard, a member of the Federal Reserve's Board of Governors, is making remarks on the US jobs market.

Australia's Nov employment report beats estimates by a large margin

The Australian employment change s.a. for November came in at 61.6k, above forecasts of +18k and prior to 3.7k, with the unemployment rate s.a. at 5.4 % vs forecasts of 5.4% and 5.4% last. 

New Zealand releases half year economic & fiscal report

The new Labour-NZ First Government has released its first economic and fiscal report, noting that the country is now projected to see a 2018/19 OBEGAL surplus of NZ$+2.828 bln (PREFU NZ$+3.515 bln).

Most US primary dealers see no more than 3 Fed rate hikes in 2018 – RTRS poll

Reuters published their poll of the primary dealers and what they expected from the FOMC next year.

China Nov data dump: Industrial production a beat, Retail sales meet estimates

China’s Nov retail sales YoY, the number came in at +10.2 vs 10.2% exp and 10.0% last, with industrial output YoY at 6.1% and 6.0% exp and 6.2% last. 

Key Focus ahead

Traders gear up for a busy and action-packed European session, with the SNB, BOE, and ECB monetary policy decisions to dominate the markets. On the data front, a raft of flash manufacturing and services PMI reports will be published from the Euro area economies alongside the Swiss PPI and UK retail sales data.

Among the central banking events, the SNB is likely to maintain the status-quo on its monetary policy, BOE will also keep its policy steady while maintaining a cautious stance on the Brexit issue. Not much is expected from the ECB monetary policy statement after October’s dovish taper announcement and amid the ongoing EU political woes.

As the dust would settle after the CB decisions, the focus will shift towards the US data flow, with the retail sales, jobless claims, import prices, and flash manufacturing and services PMIs due on the cards, which will wrap up a busy trading session.

GBP/USD - Neutral set up ahead of the BOE

GBP/USD rose to a 4-day high of 1.3449 in Asia as the Asian desks offered USD, tracking the post-FOMC decline in the treasury yields.

EUR/USD - Yield spread tightens, risk reversals rise ahead of the ECB

The post-FOMC weakness in the treasury yields and the resulting sell-off in the US dollar pushed the EUR/USD rose to a one-week high of 1.1844.

Expect no change in SNB’s monetary policy today - Commerzbank

Analysts at Commerzbank provide a brief sneak peek at what to expect from the Swiss National Bank (SNB) quarterly monetary policy assessment due out later today at 0830GMT.

The Bank of England Preview: Trapped in inflation vs. growth dilemma

The Bank of England is set to hold it monetary policy steady in December as it is about to announce the result of the Monetary Policy Committee (MPC) meeting on Thursday noon.

ECB Preview: Draghicomedy of words

With the ECB pre-announcing its asset purchasing program taper at the beginning of November, there is no much on the agenda for the ECB to deliver before Christmas given the economic environment in the Eurozone of late.