Forex Today: AUD slips on poor Aus trade, EZ CPI, US NFP - Key

FXStreet Team FXStreet

Pre-NFP caution gripped the FX today in the Asia session, with the US dollar on the back foot across the board. More so, the fresh North Korean headlines weighed down on the risk sentiment. However, towards the Asia close, a recovery in risk appetite was witnessed, with the Asian equities extending gains, in turn, pushing the USD/JPY pair back towards the 113 handle. Meanwhile, the Aussie remained on the defensive, as downbeat Aus trade data continued to weigh. The Kiwi defended minor bids while Cable advanced further towards 1.3580 levels.

Main topics in Asia

North Korea is said to be preparing for a rocket test launch

Reuters posted the reports coming out after viewing the satellite imagery that showed that North Korea is preparing for a test of a rocket engine at one of its sites.

N. Korea and S. Korea set January 9 for talks

Reuters reports the latest updates surrounding the Korean peninsula, citing that the North Korea and South Korea will speak on January 9th on Winter Olympics and other matters.

Australia's trade balance shrinks unexpectedly in November

Australia's trade balance for Nov came in at -628 million vs 915 million exp and 105 million last. Exports stood at 0% m/m, while imports were UP 1% m/m.

Japan’s Aso: Sales tax needs to be raised for fiscal consolidation

Reuters reports comments from the Japanese Finance Minister Taro Aso, as speaks to the local media on the sales tax hike, budget and other matters.

Key Focus ahead

The European calendar is quite eventful on the final trading day of this week, with the German retail sales release to pave the way for the Eurozone retail PMI and flash CPI estimate, which is expected to soften a bid in December.

Meanwhile, the labor market report and trade data from both the US and Canada are likely to dominate the NA session today. Also, of note will be the US ISM services PMI and Canadian Ivey PMI releases. Besides, the speech by the FOMC member Mester will be also closely heard for fresh insights on the US interest rates outlook.

EUR/USD: Bullish consolidation to extend ahead of EZ CPI

Having failed just shy of the 1.2092 2017 high in the US last session, the EUR/USD pair retreated on profit-taking, now extending the overnight side trend, as investors await the Eurozone flash CPI estimate and US payrolls data for fresh trading impetus.

GBP/USD: Further upside still in play ahead of US NFP?

The post-UK services PMI-led rally extended into Asia, with the bulls sending GBP/USD to daily highs of 1.3567, before easing slightly to enter a phase of consolidation near 1.3560 region.

NFP Preview: Could a strong US jobs report help boost the struggling dollar?

The official US jobs data for December will be reported on Friday morning by the US Department of Labor, and consensus expectations are pointing to a likely continuation of the strong job creation that prevailed through much of last year.

GMT	Event	Consensus	Previous
Friday, Jan 05
07:00	EUR Retail Sales (YoY)	2.5%	-1.4%
07:00	EUR Retail Sales (MoM)	1.0%	-1.2%
10:00	EUR Consumer Price Index - Core (YoY)	1.0%	0.9%
10:00	EUR Consumer Price Index (YoY)	1.4%	1.5%
10:00	EUR Producer Price Index (YoY)	2.5%	2.5%
10:00	EUR Producer Price Index (MoM)	0.3%	0.4%
13:30	USD Labor Force Participation Rate	62.8%	62.7%
13:30	USD Average Hourly Earnings (MoM)	0.3%	0.2%
13:30	USD Unemployment Rate	4.1%	4.1%
13:30	USD Average Weekly Hours	34.5	34.5
13:30	USD Average Hourly Earnings (YoY)	2.5%	2.5%
13:30	USD Nonfarm Payrolls	190K	228K
13:30	USD Trade Balance	$-49.5B	$-48.7B
13:30	CAD Imports		$45.93B
13:30	CAD International Merchandise Trade	$-1.20B	$-1.47B
13:30	CAD Exports		$44.46B
13:30	CAD Participation rate		65.7%
13:30	CAD Unemployment Rate	6.0%	5.9%
13:30	CAD Net Change in Employment	1.0K	79.5K
15:00	USD ISM Non-Manufacturing PMI	57.6	57.4
15:00	USD Factory Orders (MoM)	1.1%	-0.1%
15:00	CAD Ivey Purchasing Managers Index s.a	62.2	63.0
15:00	CAD Ivey Purchasing Managers Index		62.4
15:15	USD FOMC Member Harker Speech
17:30	USD FOMC Member Mester speech

Author

FXStreet Team

FXStreet

EUR/USD challenges 1.1800, two-week lows

EUR/USD remains on the defensive, extending its leg lower to the vicinity of the 1.1800 region, or two-week lows, on Tuesday. The move lower comes as the US Dollar gathers further traction ahead of key US data releases, inclusing the FOMC Minutes, on Wednesday.

GBP/USD looks weaker near 1.3500

GBP/USD adds to Monday’s pessimism and puts the 1.3500 support to the test on Tuesday. Cable’s marked pullback comes in response to extra gains in the Greenback while disappointing UK jobs data also collaborate with the offered bias around the British Pound.

Gold loses further momentum, approaches $4,800

Gold recedes to fresh two-week troughs around the $4,800 region per troy ounce on Tuesday. The precious metal builds on Monday’s downtick following a marked rebound in the US Dollar and mixed US Treasury yields across the board.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.