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A lack of economic reports didn’t stop Asian session forex traders from getting busy today, as they pushed the dollar higher while dragging comdolls lower.

  • Bitcoin flirts with $14,000 mark
  • AU AIG construction index up from 53.2 to 57.5 in November
  • AU trade surplus slips from 1.60B AUD to 0.11B AUD in October
  • Japan’s leading indicators dips from 106.4% to 106.1% in October
  • Kuroda: “exit from quantitative and qualitative easing” an important topic in future communication

Major Events/Reports:

Australia’s trade balance

Australia printed a 0.1B AUD surplus in October, which is lower than the expected 1.4B AUD figure and September’s 1.60B growth. That’s the lowest surplus since April, yo!

Apparently, a slump in exports of Australia’s most popular products – iron ore (-10%) and coal (-3%) contributed to the dip, as they dragged overall exports 3% lower for the month.

Meanwhile, imports grew by 2.0% on the back of higher demand for consumption goods, services, and non-monetary gold.

Not surprisingly, the Aussie took a hit at the report especially since it came at the heels of yesterday’s disappointing GDP release.

Is BOJ ready to change policy direction?

In a speech earlier today, BOJ Governor Haruhiko Kuroda hinted that he and his team might be willing to discuss exit strategies down the road.

He shared that while they “consider the current shape of the yield curve as appropriate,” they would also “consider where our short- and long-term rate targets should be in order to create an appropriate shape of the yield curve” depending on how their policies affect Japan’s banking system.

Kuroda added that “[w]hen considering our future communication with markets, an exit from quantitative and qualitative easing would be quite an important topic,” though he also stressed that it’s too early to discuss specifics for now.

Major Market Mover(s):

JPY

The low-yielding yen took a hit on overall risk appetite, which wasn’t enough to offset hints of future exit talks from the BOJ.

USD/JPY is up by 11 pips (+0.10%) to 112.39;
EUR/JPY is up by 20 pips (+0.15%) to 132.65, and
CHF/JPY is up by 15 pips (+0.13%) to 113.58.

Comdolls

A disappointing trade balance report weighed on the Aussie today and dragged Kiwi lower with it. Of course, it didn’t help that commodity prices (including oil prices) took hits during the U.S. session.

AUD/USD is down by 13 pips (-0.17%) to .7549;
USD/CAD is up by 16 pips (+0.13%) to 1.2801, and
NZD/USD Is down by 24 pips (-0.35%) to .6859.

Watch Out For:

  • 6:45 am GMT: Switzerland’s unemployment rate to remain at 3.1%?
  • 7:00 am GMT: Germany’s industrial production (0.9% expected, -1.6% previous)
  • 7:45 am GMT: France’s trade balance expected to remain at -4.7B EUR in October
  • 8:00 am GMT: Switzerland’s foreign currency reserves
  • 8:30 am GMT: U.K. Halifax house price index (0.2% expected, 0.3% previous)
  • 9:00 am GMT: Italy’s quarterly unemployment rate (11.2% expected and previous)
  • 10:00 am GMT: Euro Zone’s revised GDP (q/q) (0.6% expected and previous)