Dollar selloff was the name of the game, as risk appetite and a bit of positioning ahead of this week’s top-tier events pushed higher-yielding currencies higher.
- Japan’s BSI manufacturing index pops up from 9.4 to 9.7 in Q3 2017
- RBNZ has a new Governor!
- Bitcoin futures open today and its volatility didn’t disappoint
RBNZ has a new Governor!
Earlier today New Zealand Prime Minister Jacinda Ardern and Finance Minister Grant Robertson confirmed the appointment of Adrian Orr as the new Reserve Bank of New Zealand (RBNZ) Governor.
Orr was Chief Manager of the RBNZ’s Economics Department from 1997 to 2000 before he was Westpac Banking Corp’s Chief Economist in 2000 – 2003. He then became Deputy Governor and head of Financial Stability from 2003 – 2007 before he made NZ$ rain for New Zealand’s Superannuation Fund.
Orr’s appointment is widely supported across New Zealand’s financial market players and is also popular among RBNZ’s board. Guess he puts “or” in Governor, huh? Heh.
Overall risk appetite
Risk appetite was the name of the game during the Asian session, as traders priced in Uncle Sam’s positive jobs report and optimism ahead of the Fed’s monetary policy announcement.
- Nikkei is up by 0.31% to 28,881.50;
- Australia’s A SX 200 is up by 0.11% to 6,001.10;
- Hang Seng is up by 0.51% to 28,785.00, and
- China’s A50 is up by 0.52% to 13,132.69.
Commodity prices were a mixed bag, though.
- Gold is up by 0.16% to $1,250.40;
- Silver is up by 0.23% to $15.860;
- Brent crude oil is down by 0.43% to $63.13, and
- U.S. crude oil is down by 0.42% to $57.12.
Major Market Mover(s):
The Greenback lost pips across the board on a bout of optimism after last Friday’s strong U.S. payrolls data and ahead of this week’s major events.
EUR/USD is up by 14 pips (+0.11%) to 1.1781;
GBP/USD is up by 10 pips (+0.07%) to 1.3401, and
USD/CHF is down by 24 pips (-0.24%) to .9918.
AUD and NZD
The combination of risk appetite and the optimism around Adrian Orr as the new RBNZ head honcho boosted the Kiwi and took the Aussie along for the ride.
NZD/USD jumped by 61 pips (+0.79%) to 78.28;
NZD/JPY popped up by 50 pips (+0.72%) to .6893;
AUD/USD rose by 15 pips (+0.20%) to .7522, and
AUD/JPY inched 18 pips (+0.21%) higher to 85.42.
Watch Out For:
- 6:00 am GMT: Japan’s preliminary machine tool orders (y/y)
- 7:30 am GMT: France’s BoF business sentiment (107.0 expected, 106.0 previous)
- 9:00 am GMT: Italy’s retail sales (-0.1% expected, 0.9% previous)