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Forex Today: Aussie sold-off into weak Aus trade, EZ GDP, Draghi eyed

 Amidst ongoing broad-based US dollar upbeat momentum, most majors traded with sizeable losses in the Asian session this Thursday. The Kiwi emerged the biggest loser on the back of the commodities’ sell-off seen in the US last session, while the Aussie fell on downbeat Australian trade balance report. The Japanese currency also traded on the back foot, in the wake of rallying Japanese indices and BOJ Governor Kuroda’s comments. However, the EUR/USD pair kept its recovery mode intact, unfazed by risk-on sentiment and higher Treasury yields.

Meanwhile, the Asian equities traded lower, led by the declines in the Japanese stock. WTI dropped on a build seen in the US API stockpiles data.  Gold rebounded from 2-month lows and tested $ 1270 levels on subdued Treasury yields.

Main topics in Asia

Australia trade surplus narrowed in October, exports dropped 3 percent

The data released by the Australia Bureau of Statistics (ABS) shows the trade surplus narrowed to AUD 105 million in October from the September figure of AUD 1604 million.

Bitcoin: Bulls unstoppable, jumps beyond $ 14000 mark

The relentless rise in Bitcoin, (BTC/USD) the world’s largest cryptocurrency appears unstoppable, with the bulls extending the ongoing rally beyond $ 14,500 for the first time ever.

Fitch: APAC growth to hold up amid China slowdown and US hikes

In its latest 2018 Outlook: Emerging Asia Sovereigns, the US-based Fitch ratings, highlighted, “economic growth in Asia-Pacific (APAC) is likely to remain strong in 2018, supported by improving global trade volumes…

EU’s Juncker 'fears May's Govt will collapse next week without Brexit deal' - Telegraph

The UK's Telegraph published a story earlier today, after having learnt that the European (EU) Commission President Jean-Claude Juncker fears the UK PM Theresa May's government will collapse next week without a break to Brexit deal.

BoJ’s Kuroda: The CPI is likely to increase moderately

BoJ’s Kuroda: BOJ will promote powerful monetary easing to achieve its objectives

BoJ’s Kuroda: BOJ will do whatever it takes to achieve mandates

Key Focus ahead

The European calendar is filled up with a set of second-liner macro data releases, including the German industrial figures and Eurozone Q3 GDP revision. Meanwhile, from the UK docket, we have the Halifax HPI index release, which will keep the GBP traders slightly busy alongside the Brexit headlines hitting the wires.

In the NA session, the Canadian building permits and Ivey PMI data will be reported, while the weekly jobless claims is on the cards from the US docket. The main focus today will remain on the ECB President Draghi’s speech scheduled later in the American mid-morning.

EUR/USD: Upside seems limited ahead of EZ Q3 GDP, Draghi’s speech

The EUR/USD pair traded in a 15-pips tight range around 1.18 handle in the Asian trades, consolidating the overnight recovery from 2-week troughs of 1.1781.

GBP/USD - Net negative setup?

The GBP/USD closed below 1.34 yesterday, possibly due to concerns surrounding the Irish border and the dwindling prospects of a deal ahead of next week’s summit. 

Tricky Year End Markets

It’s not getting any easier deciphering the continually shifting market sentiment in the currency markets as the USD has gone bid across nearly every currency.

GMT
Event
Vol.
Actual
Consensus
Previous
Thursday, Dec 07
07:00
 
4.3%
3.6%
07:00
 
1.0%
-1.6%
08:30
 
0.2%
0.3%
08:30
 
3.9%
4.5%
n/a
 
 
1.87%
10:00
 
0.6%
0.6%
10:00
 
2.5%
2.5%
12:30
 
 
29.831K
13:30
 
1.908M
1.957M
13:30
 
240K
238K
13:30
 
1.5%
3.8%
15:00
 
 
63.5
15:00
 
62.7
63.8
15:30
 
-7B
-33B
16:00
 
 
20:00
 
$17.50B
$20.83B
21:45
 
 
1%
23:50
 
2.8%
2.8%
23:50
 
0.1%
0.1%
23:50
 
1.5%
1.4%
23:50
 
0.4%
0.3%
23:50
 
¥418.1B
¥852.2B
23:50
 
¥1,720.5B
¥2,271.2B
Friday, Dec 08
00:00
 
0.8%
0.9%
n/a
 
 
-6.1%

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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