- Japan Markit services PMI down from 52.2 to 51.6 in November
- AU AIG services PMI: 48.2 vs. 48.9 previous
- AU trade shows 3.31B AUD deficit vs. 2.6B AUD deficit expected, 2.32B AUD deficit previous
- AU HIA new home sales: -3.0% vs. -4.0% previous
- China Caixin/Markit services PMI: 51.2 vs. 53.1 expected, 52.0 previous
- Fonterra: global dairy prices gives us more confidence on payout
The dollar gained a couple of pips on its counterparts, thanks to Asian session forex traders pricing in Yellen’s hawkish comments and taking profits ahead of the ECB decision.
AU trade balance – Trade data from the Land Down Under surprised to the downside due to fewer exports. Its deficit widened from a revised 2.40B AUD to 3.31B AUD in October. Analysts were only expecting a deficit of 2.60B AUD.
A closer look reveals that exports fell by a seasonally adjusted 3% after showing a 6% drop in minerals and metals exports such as gold. Guess non-mining sectors aren’t covering for weaknesses in the mining industry enough!
Snoozer before the ECB decision – With the ECB’s monetary policy decision only a few hours away, some forex traders are squaring some of their positions. Other traders though, still priced in Yellen’s hawkish comments from yesterday’s U.S. session.
The Asian markets stopped for a break with Shanghai index up by 0.59%, Nikkei down by 0.20%, Hang Seng down by 0.27%, and Australia’s ASX down by 0.57%.
Major Currency Movers:
USD – The Greenback continued to find support from Yellen’s hawkish comments from the previous session. It also didn’t hurt that some forex traders took profits from their higher-yielding bets.
EUR/USD is down 26 pips (-0.25%), GBP/USD is down 10 pips (-0.07%), USD/JPY is up by 24 pips (+0.20%), and USD/CHF inched 17 pips higher (+0.17%).
AUD – The Aussie started the session on the red side of the charts after Australia printed a disappointing trade balance report. The comdoll was able to recover its losses though, with AUD/USD popping up by 10 pips (+0.14%) and AUD/JPY rising by 28 pips (+0.31%).
NZD – Like the Aussie, the Kiwi rose up the charts despite a weak Chinese services PMI report. One possible reason is Fonterra’s optimism, as it said that the recent dairy prices is giving it confidence on milk payouts. NZD/USD paused the session with a 22-pip gain (+0.33%) while NZD/JPY also rose by 41 pips (+0.50%).
- 8:15 am – 9:30 am GMT: Spanish and Italian services PMIs and French and German final services PMIs. Generally expected to print slightly higher numbers compared to last month.
- 9:30 am GMT: U.K. services PMI (55.1 expected vs. 54.9 previous)
- 10:00 am GMT: Euro Zone retail sales (0.2% expected vs. -0.1% previous)
- 12:45 pm GMT: ECB monetary policy decision
- 1:30 pm GMT: ECB press conference. Watch out for any hints of further easing!
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!