- Australia’s AIG construction index climbed from 47.0 to 47.8
- OECD: RBA should keep further rate cuts “in reserve”
- Japanese leading indicators up from 106% to 107.2%
- OPEC meetings scheduled today: Potential production cut?
It’s NFP Friday, forex fellas! Asian session traders seemed to be playing it safe, allowing dollar pairs to drift sideways in the past few hours. EUR/USD is holding steady above the 1.1200 handle and is down 15 pips (-0.15%), GBP/USD is up 6 pips (+0.03%), and USD/JPY is up 11 pips (+0.09%) while testing the resistance at 124.50.
The coast was clear in terms of top-tier data, giving medium-tier updates a chance to make waves across the charts. In particular, the small improvement in Australia’s AIG construction index from 47.0 to 47.8 enabled the Aussie to edge higher, with AUD/USD enjoying a 21-pip gain (+0.29%) and AUD/JPY advancing by 28 pips (0.34%).
Apart from that, the Organization for Economic Cooperation and Development (OECD) advised the RBA to take it easy with its rate cuts for now since the housing market could be in for a sharp correction. The organization also suggested that the central bank might get more bang for its buck in terms of easing efforts much later on, as they still expect Australian economic growth to slow down towards the end of the year.
Up ahead, the forex calendar shows that only a couple of medium-tier reports are lined up from the euro zone. These are the French trade balance and German factory orders figures, both of which might take a backseat to any updates on the Greek debt talks. Last time I checked, Greek PM Tsipras, German Chancellor Merkel, and French President Hollande were having a conference call and word through the grapevine is that the discussions were constructive.
Also scheduled today is an important huddle among OPEC officials who might announce potential changes in oil production levels. In case you haven’t been keeping track, crude oil is still on a Slip ‘N Slide these days and this has been hurting profits for oil-producing nations. Saudi Arabia doesn’t seem to be too bothered by this but if the group does decide to curb production, oil prices could pop higher and lift commodity prices and comdolls. If this turns out to be a snoozefest, better take some time to look at my buddy Forex Gump’s NFP preview instead!
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
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