Asian Session Recap – December 5, 2013

  • Australia’s trade balance disappoints with a 0.53B AUD deficit vs. 0.35B AUD expected
  • Nikkei closed down by 1.5%
  • EUR, GBP calm ahead of the BOE and ECB interest rate decisions

The comdolls started the day on the wrong side of the charts as weak Australian data and overall risk aversion weighed on AUD, CAD, and NZD. As it turned out, Australia’s imports rose by 1% while its exports stayed at the same levels.

The mixed U.S. reports yesterday also caused uncertainty over the Fed’s taper schedule and weighed on Asian equities. Nikkei ended up closing 1.5% lower than its open price. This prompted a broad weakness in yen crosses and tight ranges on the European currency pairs ahead of the central bank interest rate decisions.

Will the high-yielding currencies get a chance at some gains today? At 1:00 pm GMT the BOE will print its monetary policy decision, which isn’t expected to show any changes from last month. The ECB monetary policy decision at 1:45 pm GMT might move the markets though, especially if Draghi says something market-changing in the ECB press statement.

See also:

U.S. Session Recap

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