Forex Today: USD/JPY - volatile in Asia, PMIs in focus

The Australian dollar was the top performer in Asia this Thursday, staging a solid comeback from the previous sell-off, despite mixed economic releases from Asia-Pac regions. The Australian private capex data came in worse-than expectations, while a set of Chinese manufacturing PMI reports bettered estimates.

USD/JPY witnessed big moves on both sides, initially rallying to fresh ten-month tops at 114.83, before meeting fresh offers to now trade back below 114 handle. The US dollar corrected lower against most of its major peers, on a fresh bout of profit-taking after the recent strength. While oil prices traded positive after a brief phase of consolidation, as the bulls continue to cheer an OPEC deal.

Heading into Europe, markets look forward to a raft of final manufacturing PMI reports from the Euro area economies, followed by the UK manufacturing PMI and Eurozone jobs data. While in the NA session, we have the usual weekly jobless claims data from the US docket, alongside the ISM manufacturing gauge.

Main topics in Asia

Australia's Q3 capex worse-than-expected, no much change on estimates for 2016/17

Australian capex (private capital expenditure) for Q3 showed a reading of -4% q/q vs -2.5% expected and -5.4% last. 

Brent oil takes a breather after 9% rally

Brent oil is trading in the sideways manner in Asia after the first OPEC output cut deal since 2008 led to a 9% rally in prices on Wednesday.

China's Caixin PMI Nov: 5th consecutive month in expansionary territory

China' Caixin PMI came at 50.9 vs 50.8 exp and 51.2 last, which represents a 5th consecutive month in expansionary territory. 

USD/JPY: Sellers in control, flirts with 114.00

Broad based correction behind the greenback appears to have gathered pace over the last hour, knocking-off USD/JPY below 114 handle.

Key focus for the day ahead

UK: Potential for a big upside surprise in November’s Manufacturing PMI - TDS

Research Team at TDS, sees potential for a big upside surprise of 56.0 in November’s Manufacturing PMI of UK.

EUR/USD advances further to test 5-DMA, EZ PMIs eyed

The EUR/USD pair caught a fresh bid tone last hour, finally breaking higher from the overnight consolidative mode to regain 1.06 handle.

US: Inflation expectations surging higher - ANZ

Research Team at ANZ, notes that the US 10-year inflation expectations, as priced in the inflation-indexed bond market, have risen half a percent in 3 months, and got a 7bp lift overnight.

Goldman Sachs on GBP: Risks further downside in case of a ‘hard Brexit’

In its latest note on sterling, analysts at Goldman Sachs noted that they expect further declines in the GBP in next year, in wake of Brexit-related political uncertainty.