Article Highlights

  • AU AIG construction index up from 46.6 to 47.0 in December
  • Japanese markets out on Coming-of-Age Day bank holiday
  • AU building approvals up by 7.0% in November vs. 4.6% expected, -11.8% previous
  • AU ANZ job ads slips down by 1.9% vs. 1.6% in December
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The dollar squeezed out a couple more pips from its major counterparts, as Asian session forex traders priced in a somewhat better-than-expected NFP report and a healthy Wall Street close from last week.

Major Events:

Australia’s building approvals – Data from Australia’s Bureau of Statistics (ABS) earlier today revealed that dwellings approvals jumped up by 7.0% in November, much better than the expected 4.6% uptick and the 11.8% decline in October.

Details tell us that much of the boost came from apartments, which made up 7,966 of the 17,569 dwellings approved for the month. One thing you need to know about it is that apartment approvals are notoriously volatile, as they’re usually skewed by big projects. If we look at the more stable trend data, approvals actually fell by 2.9% in November, the sixth consecutive monthly decline for the metric. Yikes!

The report also showed that approvals fell in the Northern Territory, New South Wales, Queensland, the ACT, Victoria and South Australia. Approvals in Western Australia ticked 1.9% higher, while Tasmania’s numbers remain flat.

Overall dollar strength – With Japan’s markets out on a bank holiday, Asian session forex traders mostly caught up to last week’s price action. The dollar caught most of the good vibes after Uncle Sam printed a not-so-terrible NFP report. Meanwhile, Wall Street’s positive close may have also factored in keeping risk sentiment steady throughout the session.

Australia’s A SX 200 is up by 0.90%, the Shanghai index is up by 0.31%, and Hang Seng eked out a 0.09% gain.

Major Market Movers:

USD – Asian session traders took cues from last Friday’s U.S. session trading and continued to push the Greenback higher.

USD/JPY is up by another 37 pips (+0.32%) to 117.39, GBP/USD slipped by 5 pips (-0.04%) to 1.22446, and USD/CHF inched 4 pips higher (+0.04%) to 1.0178.

GBP – The pound gapped lower over the weekend after British Prime Minister Theresa May failed to reassure markets that she would work hard to keep the U.K.’s “single market access.” On the contrary, she suggested that those who thought the country would keep “bits of EU membership” were missing the point that it “would be leaving.”

EUR/GBP opened at .8595 after closing at 8578, GBP/JPY slid from 143.66 to 143.48, and GBP/USD opened at 1.2251 after closing at 1.2276.

AUD – Aussie bulls pounced on the better-than-expected building approvals report from Australia, but soon lost momentum near the Asian session break.

AUD/USD popped up to .7329 before settling down to .7313, AUD/JPY rose by 47 pips (+0.55%) to 85.84, and EUR/AUD 1.4382 before levelling off to 1.4400.

Watch Out For:

  • 8:00 am GMT: German industrial production (0.7% expected, 0.3% previous)
  • 8:00 am GMT: German trade balance (20.8B EUR expected, 20.5B EUR previous)
  • 9:15 am GMT: Switzerland’s retail sales (0.4% expected, -0.5% previous)
  • 9:30 am GMT: U.K. Halifax house price index (0.3% expected, 0.2% previous)
  • 10:00 am GMT: Italian unemployment rate expected to remain at 11.6%
  • 10:30 am GMT: Euro Zone Sentix investor confidence (12.6 expected, 10.0 previous)
  • 11:00 am GMT: Euro Zone unemployment rate expected to remain at 9.8%

See also:

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