The yen was the biggest gainer across the fx space in Asia this Tuesday, as markets sought safe-havens amid cautious environment in the run up to Trump’s speeches. At the same time, the Aussie too traded with moderate gains in wake upbeat fundamentals, including the latest current account data, which showed Australia’s smallest Q4 current account deficit (CAD) since September 2001. The US dollar stalled its sharp recovery and remained broadly subdued almost through the Asian session.
Next on tap, in terms of the economic data releases, we have a spate of US macro data on the cards in the NA session, including the prelim GDP report, goods trade balance, Chicago PMI and CB consumer confidence data. The EUR calendar remains relatively data-dry today.
The main risk event for today remains the US President Trump’s appearances on the media, first being an interview scheduled at 11GMT, followed by his congressional address that will take place at 9PM Washington time on Tuesday, i.e. Wednesday 2GMT.
Main topics in Asia
Japan’s industrial output falls for first time in six months
Bloomberg offers more details into the Japanese industrial production figures released earlier on the day.
Australia's Q4 BoP current account balance largely in line with expectations
Australia's BoP current account balance for Q4 came at -3.9 billion AUD vs -4.0bn AUD exp and -11.4bn AUD last.
Trump providing clues ahead of Congress - ANZ
The Whitehouse said it is planning a $54bn increase in defence spending (+10%), which will be offset with significant cuts to foreign aid and reductions in agency spending.
Delay Brexit if no trade deal reached – BC
The British Chamber of Commerce (BCC), which is in favor of remaining in the EU, says completing a trade deal within the two years allowed by Article 50 would be the “ideal outcome”.
Key focus for the week ahead
EUR/USD extends the Asian recovery, tests 1.06 ahead of Trump
The EUR/USD pair is seen reversing from daily lows of 1.0570 reached at Tokyo-open, peeking into the green zone just under 1.06 handle, as investors gear up for another round of Trump trade.
US President Trump interview coming up Tuesday at 11GMT
The US President Trump posted on his twitter account that he will be interviewed today on ‘Fox and Friends’ at 1100GMT (6am Washington time).
US Q1 GDP forecast slashed from 2.2% to 2.1% - Goldman Sachs
Analysts at Goldman Sachs came out with their latest report on the US growth numbers, which showed a cut in Q1 GDP forecast from 2.2% to 2.1% on weaker capital goods data.
US: All eyes on Trump today – ANZ
Analysts at ANZ note that US President Trump addressed media a number of times overnight providing a few clues on the key topics to be discussed at today’s joint session of Congress – among them budget plans.
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