6 Nov 2013
Session recap: An absence of bearish data points leaves door open for risk bulls late in Asian session
FXstreet.com (Barcelona) - The combination of data and news from New Zealand, Australia and Japan as well as pure technical influences has allowed the risk bulls free reign late in the Asia trading session. The Asia Pacific equity indices – especially the Nikkei index - all started ripping to the upside while the safe harbor assets like the Yen saw outflows simultaneously (sending the AUD/JPY, EUR/JPY and USD/JPY higher).
New Zealand Employment data comes out NZD-bullish
New Zealand labour data reinforces the market belief that the country is in a path to strong growth, notes Greg Gibbs, FX Strategist at RBS. The number of people in New Zealand employed rose 2.4%y/y, significantly above 1.6%y/y expected (Labour Force Survey), the highest annual growth since Q3-2006. The unemployment rate fell from 6.4% to 6.2% in Q3, reversing its rise from Q1 to Q2, taking this measure back to the low side of the range since 2009, but still significantly above full employment levels closer to perhaps 5%.
Aussie Trade Balance comes out modestly AUD-bullish
Australia’s September trade balance came out at -284m (vs. expected at -500m). The numbers were AUD-bullish and most of the crosses reflected that Aussie strength.
Bank of Japan meeting minutes contain no surprises
Here were some of the highlights:
“With regard to the outlook, Japan's economy is expected to continue a moderate recovery. The year-on-year rate of increase in the CPI is likely to rise gradually.”
“Regarding risks, there remains a high degree of uncertainty concerning Japan's economy, including the prospects for the European debt problem, developments in the emerging and commodity-exporting economies, and the pace of recovery in the U.S. economy.”
“The Bank will continue with quantitative and qualitative monetary easing, aiming to achieve the price stability target of 2 percent, as long as it is necessary for maintaining that target in a stable manner. It will examine both upside and downside risks to economic activity and prices, and make adjustments as appropriate.”
Top headlines from the Asian Session:
Upbeat NZ labour data: jobless rate declines as participation rises
EUR/AUD finishes off the lows but may just be biding time before more downside; target 1.3835
USD/JPY drops following BOJ Minutes but holds ST correction support at 98.41
Gold staying within the range of the last four sessions – waiting on DXY to break directionally
AUD/JPY reflecting the indecision in the risk markets. To pull back or not to pull back?
USD/JPY soars as Nikkei up 1% above 14.400; also boosted by EUR/JPY rally
USD/JPY soars as Nikkei up 1% above 14.400; also boosted by EUR/JPY rally
NZD/JPY upwards for a fourth consecutive day amid waning safe haven demand
New Zealand Employment data comes out NZD-bullish
New Zealand labour data reinforces the market belief that the country is in a path to strong growth, notes Greg Gibbs, FX Strategist at RBS. The number of people in New Zealand employed rose 2.4%y/y, significantly above 1.6%y/y expected (Labour Force Survey), the highest annual growth since Q3-2006. The unemployment rate fell from 6.4% to 6.2% in Q3, reversing its rise from Q1 to Q2, taking this measure back to the low side of the range since 2009, but still significantly above full employment levels closer to perhaps 5%.
Aussie Trade Balance comes out modestly AUD-bullish
Australia’s September trade balance came out at -284m (vs. expected at -500m). The numbers were AUD-bullish and most of the crosses reflected that Aussie strength.
Bank of Japan meeting minutes contain no surprises
Here were some of the highlights:
“With regard to the outlook, Japan's economy is expected to continue a moderate recovery. The year-on-year rate of increase in the CPI is likely to rise gradually.”
“Regarding risks, there remains a high degree of uncertainty concerning Japan's economy, including the prospects for the European debt problem, developments in the emerging and commodity-exporting economies, and the pace of recovery in the U.S. economy.”
“The Bank will continue with quantitative and qualitative monetary easing, aiming to achieve the price stability target of 2 percent, as long as it is necessary for maintaining that target in a stable manner. It will examine both upside and downside risks to economic activity and prices, and make adjustments as appropriate.”
Top headlines from the Asian Session:
Upbeat NZ labour data: jobless rate declines as participation rises
EUR/AUD finishes off the lows but may just be biding time before more downside; target 1.3835
USD/JPY drops following BOJ Minutes but holds ST correction support at 98.41
Gold staying within the range of the last four sessions – waiting on DXY to break directionally
AUD/JPY reflecting the indecision in the risk markets. To pull back or not to pull back?
USD/JPY soars as Nikkei up 1% above 14.400; also boosted by EUR/JPY rally
USD/JPY soars as Nikkei up 1% above 14.400; also boosted by EUR/JPY rally
NZD/JPY upwards for a fourth consecutive day amid waning safe haven demand