Profit-taking was the name of the game during the Asian session, as a lack of major economic releases inspired traders to close their positions ahead of Thanksgiving holidays.
- New Zealand’s visitor arrivals up by 2.9% vs. 0.4% gain in September
- Australia’s MI leading index extends 0.1% growth in November
- Australia’s construction work done (q/q) up by 15.7% vs. 2.1% decline expected
- Mueller probes Kushner’s contacts with foreign leaders
Risk appetite up
Higher-yielding currencies like the comdolls may have lost its mojo against their lower-yielding counterparts, but that didn’t stop equities and commodities traders from loading up on their bets.
The Asian bourses were boosted higher by a recovery in U.S. equities:
- Nikkei is up by 0.58% to 22,546.50;
- China’s A50 is up by 0.83% to 13,882.48;
- Hang Seng is up by 0.93% to 30,095.50, and
- Australia’s A SX 200 is up by 0.47% to 5,991.30.
Even oil prices extended their rallies:
- U.S. crude oil is up by 1.55% to $57.71 and
- Brent crude oil is up by 0.59% to $62.94.
Mixed dollar action
With not a lot of fresh data to price in, Asian forex traders took cues from the previous trading session. That is, they were also wary of the lack of momentum for U.S. yield curves despite the parade of relatively hawkish reports from Uncle Sam.
Of course, it didn’t help the Greenback that special counsel Robert Mueller reportedly started digging into Jared Kushner’s interactions with foreign leaders during the presidential transition.
While the motivation to expand investigations this wide isn’t yet clear, the possibility of more “administrative errors” from the Presidential son-in-law was enough to keep some traders away from the Greenback.
Major Market Mover(s):
Profit-taking ahead of the U.S. Thanksgiving holidays and Labor Thanksgiving Day in Japan boosted demand for the low-yielding yen weighed on its counterparts.
USD/JPY is down by 16 pips (-0.14%) to 112.29;
EUR/JPY is down by 18 pips (-0.14%) to 131.82;
AUD/JPY is down by 24 pips (-0.28%) to 84.96, and
NZD/JPY is down by 12 pips (-0.16%) to 76.67.
Watch Out For:
- No major reports scheduled, but keep an eye out for possible profit-taking before tomorrow’s Turkey Day holiday in the U.S.!