Both volatility and directional movement were in short supply during today’s Asian session. The Kiwi was feeling some bearish pressure and got nudged lower across the board, though. The yen, meanwhile, managed to score small wins against all its peers.
- Japan’s M2 money stock y/y: 4.3% as expected vs. 4.2% previous
Commodities score slightly more gains
Commodities broadly inched higher today, extending their gains from yesterday.
Precious metals outperformed, likely because of the risk-off vibes.
- Gold was up by 0.18% to $1,226.37 per troy ounce
- Silver was up by 0.82% to $16.399 per troy ounce
Base metals were mixed but most printed some gains.
- Copper was up by 0.24% to $2.513 per pound
- Tin was up by 0.10% to $19,897.50 per dry metric ton
Oil benchmarks, meanwhile, were also slightly up.
- U.S. crude oil was up by 0.13% to $47.89 per barrel
- Brent crude oil was up by 0.10% to $50.82 per barrel
The U.S. dollar index was down slightly by 0.05% to 99.48 for the day (so far) when the session was about to end. And that may have helped stoke demand for commodities.
Iron ore slides some more
Most commodities extended their gains, but iron ore was not one of them. Iron ore continued to bleed out, with Dalian iron ore falling further by 1.7% to 453.50 yuan ($66) per dry metric ton during today’s Asian session.
Market analysts pointed to speculators getting squeezed out by China’s deleveraging campaign, as well as China’s continuing crackdown on steel mills that failed to pass emission standards.
Mostly risk-off vibes in Asia-Pacific
The major equity indices in the Asia-Pacific region had a mixed performance. More indices were printing losses, though, so risk aversion seems to have been more prevalent.
- Australia’s ASX 200 was down by 0.87% to 5,827.40
- New Zealand’s NZX 50 was down by 0.35% to 7,463.13
- The Shanghai Composite was up by 0.38% to 3,073.48
- Hang Seng was up by 0.04% to 25,135.00
- The Nikkei Index was down by 0.55% to 19,851.50
- KOSPI was down by 0.34% to 2,288.15
According to market analysts, the risk-off vibes in the Asia-Pacific region was due to risk sentiment spillover from the downbeat session in Wall Street.
Major Market Mover(s):
Most currency pairs were milling about in tight ranges during the session. Kiwi pairs were an exception, though, since the Kiwi felt some bearish pressure and ended up lower across the board.
There were no apparent catalysts, although it’s possible that risk aversion may be weighing down on the higher-yielding Kiwi. However, risk aversion is also not very likely since the Aussie was range-bound despite lower iron ore prices. Well, whatever the case may truly be, it’s still a fact that the Kiwi was the loser of this session.
NZD/USD was down by 8 pips (-0.12%) to 0.6841, NZD/JPY was down by 22 pips (-0.28%) to 77.77, NZD/CHF was down by 7 pips (-0.10%) to 0.6899
Price action on yen pairs was rather choppy. Even so, the yen did slightly edged out wins against all its rivals, very likely because of the risk-off vibes during the session.
USD/JPY was down by 16 pips (-0.15%) to 113.68, GBP/JPY was down by 19 pips (-0.13%) to 146.53, CAD/JPY was down by 11 pips (-0.14%) to 82.98
Watch Out For:
- 6:00 am GMT: German preliminary GDP (0.6% expected, 0.4% previous)
- 6:00 am GMT: German final HICP (0.0% expected, same as previous)
- 6:45 am GMT: French preliminary non-farm payrolls (0.2% expected, 0.4% previous)
- 9:00 am GMT: Euro Zone industrial production (0.3% expected, -0.3% previous)