Forex Today: Aussie weaker on RBA minutes, UK inflation report hearings eyed

Dhwani Mehta FXStreet

Forex today was a mixed bag, with resurgent USD demand and mostly higher Asian equities driving the moves. Meanwhile, the RBA minutes turned out to be a big villain, souring sentiment around the AUD, with the Kiwi following the suit, little affected by better NZ credit card spending data. The yen, Euro, and gold were better bid amid the renewed North Korea risks after the US designated N. Korea as a state sponsor of terrorism.

Main topics in Asia

ECB's Villeroy - Don't wait to see French reforms to strengthen eurozone - Reuters

“The euro area can ill afford to wait and see if France’s reforms bear fruit before deepening the bloc’s economic integration.”

RBA Minutes: sees `considerable uncertainty' around wage pressures

The RBA minutes were released and the AUD/USD has dropped over 10 pips on the release.

Japan’s Abe welcomes the US designation of N. Korea as sponsor of terrorism - Kyodo

Kyodo news reported comments from the Japanese PM Abe on Tuesday, responding to the US President Trump’s move of designating North Korea as a state sponsor of terrorism.

Trump administration asks Supreme Court to reinstate full travel ban – BBG TV

Headlines crossed the wires earlier today, via Bloomberg TV, citing that the Trump administration asked Supreme Court to reinstate full travel ban.

Key Focus ahead

Heading into Europe, the UK inflation report hearings will remain the main interest for the EUR, GBP traders amid a lack of significant news from the Euroland and UK docket. Also, of note will be the RBA Governor Lowe’s speech and UK industrial order expectations data. In the NA session, the Canadian wholesales sales, NZ GDT price index and the US existing home sales data will be reported.

GBP/USD: Bulls in a wait-and-see mode ahead of BOE’s inflation hearings

The overnight rebound in the GBP/USD pair lost legs just shy of 1.3250 mark, with the bears now push the rate back towards the NY lows of 1.3224 amid resurgent USD demand and North Korea headlines.

Will Merkel's Political Troubles Send EURO to 1.16?

The week of Thanksgiving is typically a quiet one for currencies because many U.S. traders are off for the whole week.

EUR/USD - Trendline offers support & risk reversals shed bullish bias, what's next?

EUR/USD closed below the 100-day MA yesterday but failed to cut through the support offered by the trendline sloping downwards from the Sep. 8 high and Sep. 20 high.

Australia Q3 construction work done preview - NAB

Analysts at National Australia Bank (NAB) note that the key risk event for the Aussie this week will be the Q3 construction work done due on the cards tomorrow.

GMT	Event	Consensus	Previous
Tuesday, Nov 21
09:00	EUR EU Financial Stability Review
09:05	AUD RBA's Governor Philip Lowe Speech
09:30	GBP Public Sector Net Borrowing	£6.600B	£5.326B
10:00	GBP Inflation Report Hearings
11:00	GBP CBI Industrial Trends Survey - Orders (MoM)	3	-2
13:30	USD Chicago Fed National Activity Index	0.20	0.17
13:30	CAD Wholesale Sales (MoM)	0.6%	0.5%
13:55	USD Redbook index (YoY)		2.3%
13:55	USD Redbook index (MoM)		-1.2%
n/a	NZD GDT Price Index		-3.5%
15:00	USD Existing Home Sales (MoM)	5.43M	5.39M
15:00	USD Existing Home Sales Change (MoM)	0.7%	0.7%
15:00	EUR ECB Cœuré Speech
16:30	USD 4-Week Bill Auction		1.045%
20:30	USD API Weekly Crude Oil Stock		6.513M
21:45	NZD Visitor Arrivals (YoY)		3.1%
23:00	USD Fed's Yellen Speech
23:30	AUD Westpac Leading Index (MoM)		0.1%
Wednesday, Nov 22
00:30	AUD Construction Work Done		9.3%
08:00	EUR Non-monetary policy's ECB meeting
n/a	GBP 30-y Bond Auction		1.87%
12:00	USD MBA Mortgage Applications		3.1%
n/a	GBP Autumn Forecast Statement
13:30	USD Initial Jobless Claims		249K
13:30	USD Continuing Jobless Claims		1.86M

Author

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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Gold treads water around $4,000

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Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

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The French bond panic is overdone. Here's what the market is misreading

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