Article Highlights

  • China’s banks still out on holiday
  • NZ ANZ commodity prices up by 5.1% vs. 3.2% previous
  • AU retail sales up by 0.4% vs. 0.2% expected, 0.0% previous
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The yen and the Aussie were the stars of today’s Asian session show, as the former weakened across the board while the latter priced in the RBA’s statement.

Major Events:

Australia’s retail sales – Retail sales in the Land Down Under picked up in August, rising by 0.4% when analysts had only expected a 0.2% surge. The gain marked the fastest pace since October 2015 and translates to a 2.8% increase in the twelve months to August.

A closer look reveals that it was the rise in department store sales (+3.5%) that led the uptick, followed by sales in restaurants, cafes, and takeaway food services (+1.3%), food retailing (+0.3%), and household goods retailing (+0.2%).

Uptick in oil pricesBlack Crack prices received boosts early in the session after the American Petroleum Institute (API) reported a surprise draw in oil inventories. The report showed that U.S. crude oil inventories fell for the fifth straight week, this time declining by 7.6 million barrels against the expected decrease of 2.6 million barrels.

Brent crude oil is up by 0.86% to $51.31 while U.S. crude oil is also up by 0.97% to $49.16.

Major Market Movers:

JPY – The yen weakened further on continued dollar strength, a fact that was celebrated by Japanese companies today.

USD/JPY may have stalled just below the 103.00 major psychological handle, but EUR/JPY rose by another 12 pips (+0.10%) to 115.36 while CHF/JPY shot up by another 14 pips (+0.13%) to 105.16.

AUD – The Aussie lost a couple of pips in early Asian session trading, but soon found its footing after Australia printed a better-than-expected retail sales report.

AUD/USD rose from its .7606 intraday lows to trade at .7634 while AUD/JPY fell to a low of 78.16 before recovering to 78.49.

CAD – The oil-related Loonie took advantage of the rise in oil prices.

USD/CAD slipped by 18 pips (-0.14%) to 1.3176 and GBP/CAD is down by 12 pips (-0.07%) to 1.6784.

Watch Out For:

  • 7:15 am GMT: Spanish services PMI (54.8 expected, 56.0 previous)
  • 7:45 am GMT: Italian services PMI (52.1 expected, 52.3 previous)
  • 7:50 am GMT: French final services PMI expected to remain at 54.1
  • 7:55 am GMT: German final services PMI expected to remain at 50.6
  • 8:00 am GMT: Euro Zone final services PMI expected to remain at 52.1
  • 8:30 am GMT: U.K. services PMI (52.1 expected, 52.9 previous)
  • 9:00 am GMT: Euro Zone retail sales (-0.1% expected, 1.1% previous)

See also:

U.S. Session Recap
London Session Recap

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