- Australia’s new motor vehicle sales down by 0.6% in Nov
- PM Abe and LDP emerge victorious in Japanese national elections
- Japan’s Tankan manufacturing index down from 13 to 12
- Japan’s Tankan non-manufacturing index up from 13 to 16
- Australian mid-year economic and fiscal outlook: Mixed forecasts on inflation, employment and growth
Forex traders still seem to be watching the hostage situation in Sydney very closely, as price action among some pairs was limited. It looks like risk aversion is taking hold for now, as GBP/USD is looking at a mere 0.02% gain, USD/JPY is down 0.09%, and EUR/USD has a 0.12% loss so far.
Despite the tense situation in Australia, Prime Minister Tony Abbott allowed the Treasury department to release their mid-year economic and fiscal outlook. The report indicated mixed forecasts on inflation, employment, and growth, with stronger price pressures and weaker hiring prospects eyed. AUD/USD is up 0.09% while AUD/JPY is down 0.11%.
In Japan, the Tankan survey indicated more weakness in the manufacturing sector and an improvement in the non-manufacturing industry. The manufacturing component fell from 13 to 12 while the non-manufacturing figure climbed from 13 to 16, stronger than the projected reading at 14.
Yen pairs are trading lower so far, with the Nikkei chalking up more than 1% in losses for the session, as the national elections held over the weekend showed a victory for Prime Minister Abe and his ruling coalition. This suggests that sweeping reforms in government spending and potentially increased policy easing could be seen much later on.
Only a few medium-tier reports are due in the London trading session, with Switzerland ready to release data on producer prices and the U.K. set to print its CBI industrial order expectations report. Producer prices are expected to climb 0.2% in Switzerland, erasing part of the 0.1% decline in the previous month. Meanwhile, the CBI index is slated to hold steady at 3 for December.
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