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Risk aversion was the name of the game during the Asian session, as a lack of reports turned investors’ attention to the Asian bourses’ weak performances.

  • Japan’s services producer price index (y/y) grows by 0.8% vs. 0.9% expected and previous
  • Bitcoin jumps to $9,700 and everyone can’t stop talking about it
  • Yen gains on overall risk aversion

Major Events/Reports:

Jitters from China’s markets

The Asian bourses started the week on a weak note as the Chinese government’s continued crackdown on shadow banking and other risky forms of financing weighed on consumer and banking stocks, which then pulled Chinese indices lower.

  • China’s A50 is down by 1.81% to 13,229.12;
  • Hang Seng is down by 0.43% to 29,736.50;
  • Nikkei is down by 0.28% to 22,487.00, and
  • Australia’s A SX 200 treaded water at 5,984.90 (+0.04%).

Commodity prices were a little more mixed:

  • Gold rose by 0.19% to $1,289.80;
  • U.S. crude oil slipped by 0.41% to $58.71, and
  • Brent crude popped up by 0.58%.

Small dollar gains

Whether it’s the overall risk aversion vibe or a bit of optimism ahead of Trump’s tax meeting with Senate Republicans this week, the Greenback managed to sneak in a couple of pips.

Of course, it also doesn’t hurt that incoming Fed Chair Jerome Powell will be under the spotlight tomorrow in a Congressional hearing, where we’ll likely hear his thoughts on issues like growth and inflation.

Major Market Mover(s):

JPY

The risk-averse vibe worked well for the low-yielding yen, which gained pips against its major counterparts.

USD/JPY is down by 15 pips (-0.13%) to 111.39;
EUR/JPY is down by 24 pips (-0.18%) to 132.83;
CHF/JPY is down by 30 pips (-0.26%) to 113.56, and
GBP/JPY is down by 31 pips (-0.21%) to 148.33.

Comdolls

Risk aversion and commodity-related concerns rained on the comdolls’ parade today and dragged them lower against their lower-yielding counterparts.

AUD/USD is down by 13 pips (-0.17%) to .7604;
NZD/USD is down by 18 pips (-0.26%) to .6864;
AUD/JPY is down by 25 pips (-0.29%) to 84.69;
CAD/JPY is down by 16 pips (-0.18%) to 87.60, and
NZD/JPY is down by 29 pips (-0.38%) to 76.46.

Watch Out For:

  • 6:00 am GMT: Germany’s import price index (0.4% expected, 0.9% previous)