Markets Today: AUD shrugs-off retail sales, US NFP in Spotlight

Dhwani Mehta FXStreet

A quiet Asian session, with only a couple of macro news from the Australian docket, viz., the RBA’s quarterly Statement of monetary policy (SoMP) and retail sales data. Both events failed to keep the Aussie as higher levels, as risk-off theme continued to dominate Asia.

The Kiwi was the biggest loser on increased expectations that RBNZ will cut cash rate next week, while the cable continued to derive support from the UK High Court Brexit ruling and BOE policy decision.

Looking ahead, we have a fairly light EUR calendar, with only the final services PMI readings to be reported from across the Euro area and PPI data. While the all-important US labour market report will be published in the NA session, followed by the Canadian jobs and trade data.

Apart from the data, BOE MPC member Forbes is scheduled to speak about the unintended consequences of monetary and regulatory policies at the Jacques Polak Annual Research Conference, in Washington DC.

Main topics in Asia

Sept Australian retail sales beat expectations

The trend estimate rose 0.2% in September 2016. This follows a rise of 0.3% in August 2016 and a rise of 0.2% in July 2016.

RBA SoMP: GDP, inflation forecasts little changed

The RBA’s Statement on Monetary Policy (SoMP), issued quarterly, has been published, with the Central Bank failing to provide fresh clues into monetary policy.

2 parallel FBI probes regarding emails and Clinton foundation case - FBI sources

According to market sources via Twitter, well placed unnamed FBI sources confirmed that there are 2 parallel FBI probes regarding emails and Clinton foundation case.

Key focus for the day ahead

Dec Fed hike odds approach 80% as job growth seen rising – BBG

Bond markets are very optimistic of a Fed hike in Dec as economists expect the US jobs report will show enough improvement to justify such a hike, Bloomberg reports.

EUR/USD re-attempts 1.1100 ahead of US payrolls

The EUR/USD pair is seen consolidating in a narrow range just below 1.11 barrier as we head into early Europe, with sellers lurking in response to renewed demand for the US dollar ahead of the US NFP data due later on Friday.

To learn more about this topic, check our video analysis

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.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.