Markets Today: NZD outperforms amid risk-off, UK PMI, FOMC eyed

Risk-off sentiment remained the key theme in Asia this session, bolstering the demand for safe-havens at the expense of higher-yielding assets.

Hence, the yen emerged the top gainer in the Asian trades, while the Aussie slumped amid risk-aversion triggered by latest polls showing Trump taking the lead in the US presidential elections race. However, the NZD stood resilient to risk-off trades and rallied sharply on the back of solid NZ jobs data and a jump in the milk prices seen a day before.

Heading into Europe, the immediate focus remains on the flurry of final manufacturing PMI reports from the Euroland and UK construction PMI report. While in the NA session, we have the ADP jobs and EIA crude reserves data, followed by the much-awaited FOMC statement, which is expected to strongly signal a Dec Fed rate rise.

Main topics in Asia

NZ jobs: Labor market has strong momentum and is tightening quite quickly - ANZ

Putting aside the surprise in some quarterly movements (always on the cards), today’s figures confirmed what we had expected: the labour market has strong momentum and is tightening quite quickly.

Risk-off grips Asia ahead of Fed verdict

The sentiment on the Asian markets soured this Wednesday, as risk-off moods remained in full swings with markets now pricing-in a Trump win in the US presidential elections.

Australia's national fiscal outlook has deteriorated since 2015-16

Australia's national fiscal outlook has deteriorated since 2015-16 mid-year fiscal updates, according to the Australian Parliamentary Budget Committee. 

BOJ’s Kuroda: Will continue with ‘aggressive, bold easing’ until price target reached

BOJ Governor Kuroda is on the wires yet again, speaking in Diet on central bank’s commitment to reach 2% price target.

Key focus for the day ahead

EUR/USD breaks higher to new 3-week highs, PMIs ahead

The immediate focus remains on a series of final manufacturing PMI reports from the Euro area economies. While the US ADP jobs report and FOMC decision will take center-staged later in the NA session.

GBP/USD: Key support at 1.2220 tested, UK PMI eyed

Later in the day, markets look forward to the UK construction PMI, which is also expected to deteriorate in Oct, much like yesterday’s manufacturing PMI data.

Key US economic events ahead – Nomura

Analyst at Nomura present brief insights on the upcoming key macro events from the US docket lined up later today.