- NZ ANZ commodity prices: -5.6% vs. 7.1% previous
- AU retail sales: 0.5% vs. 0.4% expected and previous
- Japan average cash earnings: 0.7% vs. 0.4% expected and previous
- Japan consumer confidence: 42.6 vs. 41.8 expected, 41.5 previous
Forex price action was as exciting as watching water boil, as traders refrained from committing to positions ahead of today’s NFP report.
Australia’s retail sales meets expectations – Retail sales in the Land Down Under showed improvement for a third month in a row in October, this time clocking in a 0.5% uptick. Analysts had been expecting a 0.4% rise just like last month.
A closer look tells us that it was the 3.5% increase in department store sales that helped lift the stats, along with a 1.1% increase in household good sales and 0.6% uptick in food retailing. The reports support theories that the RBA’s low interest rates are helping support consumer spending.
Small profit-taking – Whether it’s profit-taking from yesterday’s ginormous moves or a bit of risk aversion on the back of the ECB’s latest move to increase stimulus, the higher-yielding currencies took hits across the board. Even the Asian session bourses took a break in the red with Nikkei down by 2.26%, Shanghai index down by 1.19%, Hang Seng down by 1.12%, and ASX down by 1.65%.
Tight pre-NFP ranges – Like in most NFP days, volatility was limited in major currency pairs. This doesn’t mean that we won’t see any action during the release though. Just take a look at Forex Gump’s trading guide to see what happened to the dollar’s price action last month!
Major Currency Movers:
USD – The Greenback gained a couple of pips across the board, either due to a slight risk aversion in the markets or traders finally paying attention to Yellen’s hawkish remarks yesterday. In any case, USD/JPY popped up by 25 pips (+0.20%), USD/CHF inched 40 pips higher (+0.41%), and GBP/USD slid by 24 pips (-0.16%).
AUD – The comdoll failed to gain support from forex traders despite a favourable Australian retail sales release. AUD/USD slipped by 29 pips (-0.40%) as AUD/JPY inched 15 pips (-0.17%) lower.
EUR – The common currency started the session by taking a few pips back across the board, but eventually recovered some of its session losses.
EUR/USD fell to a session low of 1.0900 before finishing at 1.0940 while EUR/GBP fell to .7208 before climbing back up to .7230. Heck, even EUR/JPY managed to sneak up to 134.07 after falling to 133.76!
- 7:00 am GMT: German factory orders (1.2% expected vs. -1.7% previous)
- 8:15 am GMT: Swiss CPI report (0.0% expected vs. 0.1% previous)
- More tight ranges ahead of Canada and Uncle Sam’s employment reports
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!