19 Nov 2013
Session recap: Data flow picks up – nets only modest moves in currencies
FXstreet.com (Barcelona) - Tuesday’s Asian trading session has been characterized by the phrase “much ado about nothing”. We had decent Aussie data, an RBA jawboning rates down the best they could in their minutes, Chinese data that disappointed and Yen-bullish Japanese data. What was the net result of all of this new information? No moves in any currency futures more than 0.30% - although the Japanese data just came out and is moving the Yen to the upside a little more now.
Aussie data and RBA Meeting Minutes
The release of the Conference Board’s Index of Leading Indicators for Australia actually showed a nice improvement month over month at 0.3% versus last month’s -0.2% reading. The Reserve Bank of Australia’s monthly Meeting Minutes came out and reflected the RBA’s concerns about the elevated level of the Aussie dollar relative to the still nascient recovery in Australia. The Aussie Dollar waffled around for a while following the data and news from Australia and before Chinese data were released.
Chinese data weighs on risk assets short-term
The read on Foreign Direct Investment into China showed a marked decrease on a month-over-month basis (5.77% versus 6.2% in the previous month). The news was taken as disappointing by the risk markets and initially sent the Aussie and New Zealand Dollars down to the lows of the session. However, the risk currencies did manage to rebound nicely off the lows heading into the release of Japanese Leading Indicator data.
Japanese data surprises to the upside
The Japanese economic data released by the Japanese Cabinet Office at 05:00 GMT caught the markets off guard with its bullish tone – Yen bullish, that is. The September final leading index was 109.2 (vs. prior was 109.5) while the September final coincident index came in at 108.4 (vs. prior was 108.2). The already buoyant Yen – which was being bought from the get-go Tuesday, caught an additional bid after the data were released.
Main Headlines in Asia
Is there room for sustained Yen sales amid crowded specs positioning?
RBA minutes: not closing off chance of cut, AUD uncomfortably high
EUR/USD higher for the session Monday but still below “underbelly resistance” at 1.3530
Nikkei breaks intraday support, Yen buying accelerates
NZD/USD posts bearish “long-tailed” candle Monday – possible downside to follow
Flash: Fed taper in early 2014 looks like a good bet - TDS
AUD bids expected on largest Australian bond deal issuance
Aussie data and RBA Meeting Minutes
The release of the Conference Board’s Index of Leading Indicators for Australia actually showed a nice improvement month over month at 0.3% versus last month’s -0.2% reading. The Reserve Bank of Australia’s monthly Meeting Minutes came out and reflected the RBA’s concerns about the elevated level of the Aussie dollar relative to the still nascient recovery in Australia. The Aussie Dollar waffled around for a while following the data and news from Australia and before Chinese data were released.
Chinese data weighs on risk assets short-term
The read on Foreign Direct Investment into China showed a marked decrease on a month-over-month basis (5.77% versus 6.2% in the previous month). The news was taken as disappointing by the risk markets and initially sent the Aussie and New Zealand Dollars down to the lows of the session. However, the risk currencies did manage to rebound nicely off the lows heading into the release of Japanese Leading Indicator data.
Japanese data surprises to the upside
The Japanese economic data released by the Japanese Cabinet Office at 05:00 GMT caught the markets off guard with its bullish tone – Yen bullish, that is. The September final leading index was 109.2 (vs. prior was 109.5) while the September final coincident index came in at 108.4 (vs. prior was 108.2). The already buoyant Yen – which was being bought from the get-go Tuesday, caught an additional bid after the data were released.
Main Headlines in Asia
Is there room for sustained Yen sales amid crowded specs positioning?
RBA minutes: not closing off chance of cut, AUD uncomfortably high
EUR/USD higher for the session Monday but still below “underbelly resistance” at 1.3530
Nikkei breaks intraday support, Yen buying accelerates
NZD/USD posts bearish “long-tailed” candle Monday – possible downside to follow
Flash: Fed taper in early 2014 looks like a good bet - TDS
AUD bids expected on largest Australian bond deal issuance