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

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD languishes near two-month low amid renewed Iran tensions

AUD/USD holds above 0.7000 during the Asian session on Wednesday, though it remains close to a nearly two-month low set the previous day. Fresh US strikes on Iran temper hopes for a peace deal and benefit the safe-haven US Dollar. Furthermore, inflationary concerns continue to fuel hawkish Fed expectations, lending additional support to the buck ahead of the US CPI report. Adding to this, reduced bets on an RBA rate hike in June cap the currency pair.

USD/JPY sits near 160.50 intervention zone as bulls shrug off Japan's strong PPI

USD/JPY consolidates just below mid-160.00s, or its highest level since late April, as economic concerns stemming from the Middle East conflict continue to undermine the Japanese Yen (JPY). Furthermore, a fresh wave of US strikes on Iran benefits the safe-haven US Dollar and acts as a tailwind for the currency pair, countering Japan's hotter-than-expected PPI report. However, intervention fears cap the upside as traders seem hesitant ahead of the US consumer inflation figures later this Wednesday.

Gold flirts with $4,200, lowest since March 23 on hawkish Fed bets

Gold drops to a fresh low since March 23, around the $4,200 mark during the Asian session on Wednesday, as fresh US strikes on Iran fuel inflationary concerns and bolster bets for more hawkish central banks, including the US Fed. Meanwhile, US Dollar bulls are turning cautious ahead of the US CPI report, which could limit bullion losses. However, the recent breakdown below the 200-day SMA suggests that the path of least resistance for the XAU/USD is to the downside.

Bitcoin sell-off pushes over 50% of circulating supply into loss, hinting at market bottom

Bitcoin dropped near $61,000 on Tuesday, with the latest sell-off pushing long-term market indicators toward levels historically associated with bear-market bottoms, according to a report by K33 Research.

When the chips are down, the AI tape starts to shake

The market came into Tuesday trying to sell investors the comforting ”Turnaround Tuesday” idea that Friday’s AI fracture was just another pothole on the road higher. By the close, that story had lost its bid. Monday’s dead cat bounce had done what dead cat bounces always do.

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.