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With no fresh report to price in, Asian session traders focused on themes from the previous sessions.

  • Japan’s retail sales (y/y) up by 2.0% vs. 2.6% expected, 3.2% previous
  • AU HIA new home sales grows by 1.1% vs. 0.8% uptick in April
  • AU job vacancies rose by 1.6% in Q2 2017, the highest since 2011
  • NZ ANZ business confidence shoots up from 14.9 to 24.8 in June

Major Events/Reports:

Continued dollar selloff

With not a lot of data on the docket, Asian session traders extended themes from the previous session. That is, they continued to buy higher-yielding assets on speculations that the Fed isn’t the only major central banker that’s on a tightening road.

As mentioned in my previous trading session recaps, the ECB, BOE, and the BOC all boosted market morale yesterday by hinting that they won’t be maintaining their easy monetary policies for long.

It also helped overall risk appetite that U.S. equities recovered during the previous session and dragged Asian bourses higher across the board.

  • Nikkei is up by 0.42% to 20,215.00
  • Australia’s A SX 200 is up by 1.07% to 5,817.30
  • Hang Seng is up by 25,873.00 and
  • Shanghai index is up by 0.24% to 11,437.60.

Australia’s lower tier reports

Data from the Land Down Under added ammo to the Aussie bulls’ firepower today.

Total job vacancies in Australia climbed by another 1.6% in Q2 2017 and marked the fourth straight quarter of gains to hit the highest level of vacancies since 2011. It also represented a 6.6% gain from Q2 2017.

Vacancies in the private sector rose by 1.3% to 170,100 – also the highest since 2011 – and represented a 5.9% gain from a year earlier in the same period. Meanwhile, public sector vacancies gained 3.8% from the previous quarter and marked its highest reading since 2009.

Meanwhile, the HIA new home sales report posted a back-to-back gain in May, this time growing by 1.1% after a 0.8% uptick in April.

The agency warned, however, that growth significantly differs across regions and that “meeting Australia’s housing needs over the long-term is becoming increasingly challenging.” Specifically, government policies should focus on delivering affordable supply to Australia’s future homeowners.

Major Market Mover(s):

AUD

Positive data from Australia, higher iron ore prices, and overall, risk appetite all contributed to a good trading day for the Aussie.

AUD/USD is up by 19 pips (+0.25%) to .7659, AUD/JPY is up by 24 pips (+0.28%) to 86.00, and AUD/NZD inched 6 pips higher (+0.06%) to 1.0460

USD

The low-yielding dollar stepped back some more against its major counterparts as Asian session traders caught up to the previous sessions’ risk-friendly theme.

EUR/USD shot up by another 24 pips (+0.21%) to 1.1405, GBP/USD rose by 28 pips (+0.22%) to 1.2958, and USD/CHF fell by 15 pips (-0.16%) to .9579.

Watch Out For:

  • 6:00 am GMT: GfK German consumer climate expected to remain at 10.4
  • 7:00 am GMT: Spanish flash CPI (y/y) (1.6% expected, 1.9% previous)
  • 8:00 am GMT: Germany’s preliminary CPI (0.0% expected, -0.2% previous)
  • 8:00 am GMT: Germany’s preliminary HICP (0.0% expected, -0.2% previous)
  • 8:30 am GMT: U.K.’s net individual lending (4.0B GBP expected, 4.3B GBP previous)
  • 8:30 am GMT: U.K. mortgage approvals (64K expected, 65K previous)