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Forex Today: AUD slips on RBA minutes, CPIs, ZEW and Carney in focus

Risk-aversion emerged the main theme in Asia this Tuesday, with the Yen regaining ground against its American counterpart, following the warning issued by the North Korean UN ambassador. As a result, the Antipodeans also traded on the back foot, with the Aussie facing double whammy amid dovish RBA minutes.

Meanwhile, the US dollar extended its bid tone and went on to hit fresh five-day tops at 93.27, before entering a phase of consolidation near the last. The Asian equities picked-up strength over the last hour, while oil prices traded largely subdued, despite escalating Iraq tensions.

Main topics in Asia

RBA minutes: rate change timing here dependent on local economic conditions

The RBA minutes were released and the Aussie dropped a handful of pips with the minute not showing any surprises…

North Korean UN envoy says 'nuclear war may break out at any moment' - Guardian

North Korea’s deputy UN ambassador has warned that the situation in the Korean Peninsular has reached "the touch-and-go point and a nuclear war may breakout at any moment".

RBA's Ellis - Starting to see spill over effect from public infrastructure spending

Comments from RBA Assistant Governor Ellis crossing the wires via Reuters.

NZ CPI first thoughts - Westpac

Analysts at Westpac's first thoughts on the NZ CPI data that arrived as follows..

US, Japan fail to bridge gap on trade in economic talks - RTRS

Reuters out with the latest reports, citing that the US Vice President Mike Pence and Japanese Finance Minister Taro Aso failed to bridge the differences on issues of trade during economic talks on Monday. 

Key Focus ahead

Traders are poised for a busy calendar ahead, with plenty of risk events from the European calendar, viz., UK CPI, German ZEW surveys and Eurozone final CPI. Also, of significance remains the speeches by the BOE Governor Carney and board members Ramsden and Tenreyro. In the NA session, a fresh batch of US macro data are up for grabs, including the industrial production, import prices and capacity utilization. Besides, FOMC member Harker’s speech and NZ GDT price index data will also hog the limelight later on Tuesday.

GBP/USD - Will UK CPI lift Sterling?

GBP/USD fell to a low of 1.3225 on Monday after reports hit the wires that that unless the European Union concedes on some key issues, Brexit talks could collapse.

EUR/USD - Bond market sending mixed signals, focus on the Spanish / Catalonia standoff

The EUR/USD pair fell to a 5-day low of 1.1775 in Asia on reports that US President Donald Trump was impressed with Stanford University economist John Taylor during an interview for Fed Chair. 

Topsy Turvy Tuesday?

Dealers have spent the last 24 hours digesting Friday’s CPI fallout while keeping an eye on geopolitical risk amidst the deluge of Fed chair speculative headlines.

GBP - Will Hope for BoE Overshadow Brexit?

There was very little movement in currencies on Monday and this lack of volatility could be indicative of trading for the rest of the week.

GMT
Event
Vol.
Actual
Consensus
Previous
Monday, Oct 16
n/a
2.28%
 
1.55%
18:00
 
$6B
$-108B
18:00
 
 
21:00
 
 
10.7%
21:00
 
 
9%
21:45
1.9%
1.8%
1.7%
21:45
0.5%
0.4%
0.0%
Tuesday, Oct 17
00:30
 
 
00:30
-0.5%
 
0.0%
00:30
-0.8%
 
1.7%
07:00
 
 
0%
07:00
 
 
2.1%
07:00
 
1.7%
1.6%
07:00
 
0.1%
0.0%
08:00
 
 
€2.028B
08:00
 
€4.23B
€6.56B
08:00
 
 
08:30
 
4.0%
3.9%
08:30
 
0.3%
0.7%
08:30
 
5.4%
5.1%
08:30
 
0.1%
0.2%
08:30
 
3.3%
3.4%
08:30
 
0.3%
0.4%
08:30
 
8.3%
7.6%
08:30
 
2.6%
2.5%
08:30
 
1.2%
1.6%
08:30
 
2.8%
2.7%
08:30
 
3.0%
2.9%
08:30
 
0.3%
0.6%
n/a
 
 
-0.368%
08:50
 
 
-0.485%
09:00
 
20
17
09:00
 
89.0
87.9
09:00
 
34.2
31.7
09:30
 
 
10:00
 
0.4%
0.3%
10:00
 
1.5%
1.5%
10:00
 
0.4%
0.3%
10:00
 
1.1%
1.1%
10:15
 
 
12:00
 
6.2%
6.6%
12:30
 
2.6%
2.1%
12:30
 
0.6%
0.6%
12:30
 
 
2.3%
12:30
 
0.4%
0.6%
12:55
 
 
3.2%
12:55
 
 
-1.5%
13:15
 
0.2%
-0.9%
13:15
 
76.2%
76.1%
14:00
 
64
64
n/a
 
 
-2.4%
15:30
 
 
1.015%
17:00
 
 
20:00
 
 
$-7.3B
20:00
 
$14.3B
$1.3B
20:30
 
 
3.097M
23:00
 
 
3.8%
23:30
 
 
-0.1%
Wednesday, Oct 18
24h
 
 
03:00
 
 
6.7%
08:00
 
 
4.8%
08:00
 
 
0.1%
08:10
 
 
08:30
 
1.0K
-2.8K
08:30
 
4.3%
4.3%
08:30
 
 
2.1%
08:30
 
 
2.3%
08:30
 
2.0%
2.1%
09:00
 
 
0.2%
09:00
 
 
3.4%
n/a
 
 
1.27%
n/a
 
 
€-0.633B
11:00
 
 
-2.1%
11:45
 
 
12:00
 
 
12:00
 
 
12:00
 
 
7.6%
12:00
 
 
8.8%
12:00
 
 
3%
12:30
 
 
5.7%
12:30
 
 
-0.8%
12:30
 
1.18M
1.18M
12:30
 
1.25M
1.30M
12:30
 
1.0%
-2.6%
n/a
 
 
1.5%
n/a
 
 
4.7%
14:30
 
 
-2.747M
15:00
 
 
$-520.1M
15:15
 
 
18:00
 
 
23:50
 
14.9%
18.1%
23:50
 
 
¥367.3B
23:50
 
15.0%
15.2%
23:50
 
¥559.8B
¥112.6B Revised from ¥113.6B
23:50
 
 
¥89.2B
23:50
 
 
¥1,235.3B
Thursday, Oct 19
24h
 
 
24h
 
 
00:30
 
 
54.2K
00:30
 
 
40.1K
00:30
 
 
14.1K
00:30
 
 
5.6%
00:30
 
 
65.3%
01:00
 
 
1.25%
02:00
 
10.2%
10.1%
02:00
 
6.2%
6.0%
02:00
 
 
02:00
 
7.7%
7.8%
02:00
 
6.8%
6.9%
02:00
 
1.7%
1.7%
04:00
 
 
5%
04:30
 
 
-0.1%
04:30
 
 
4.7%
06:00
 
 
2,173M
06:00
 
 
16,667M
06:00
 
 
14,494M
07:00
 
 
13.1%
07:30
 
 
6%
08:00
 
 
08:30
 
2.4%
2.8%
08:30
 
0.1%
1.0%
08:30
 
-0.2%
1.0%
08:30
 
2.0%
2.4%
n/a
 
 
3.1%
n/a
 
 
1.36%
n/a
 
 
0.026%
08:50
 
 
2.804%
n/a
 
 
1.161%
12:30
 
 
1.889M
12:30
 
245K
243K
12:30
 
23.7
23.8
13:00
 
 
3
n/a
 
 
$423.3B
13:30
 
 
14:30
 
 
87B
n/a
 
 
2.5%
21:00
 
 
3.2%
n/a
 
 
0.3%
21:45
 
 
5.8%
Friday, Oct 20
24h
 
 
04:30
 
 
2.8%
04:30
 
 
23
06:00
 
0.1%
0.2%
06:00
 
2.9%
2.6%
06:35
 
 
07:00
 
 
0.3%
08:00
 
 
€25.1B
08:00
 
 
€32.5B
08:30
 
 
£5.093B
11:30
 
 
$398.79B
12:00
 
 
0.11%
n/a
 
 
6.5%
12:30
 
0.3%
0.2%
12:30
 
0.4%
0.4%
12:30
 
0.3%
0.1%
12:30
 
0.3%
0.1%
12:30
 
1.6%
1.4%
12:30
 
 
0.9%
12:30
 
 
0%
13:00
 
 
3.3%
13:00
 
 
3.5%
14:00
 
5.30M
5.35M
14:00
 
-1.0%
-1.7%
17:00
 
 
743
18:00
 
 
19:30
 
 
$200.1K
19:30
 
 
417.1K
19:30
 
 
$140.5K
19:30
 
 
£15.5K
19:30
 
 
¥-101.4K
19:30
 
 
€98.1K
19:30
 
 
$69.2K
23:15
 
 

Author

Dhwani Mehta

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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