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The major currencies mostly stayed in Snoozeville for most of the Asian session as they wait for top-tier events scheduled in the London session.

  • Japan’s PPI (y/y) up by 3.5% vs. 3.3% expected, 3.4% growth in October
  • Japan’s tertiary industry activity up by 0.3% vs. 0.2% expected, -0.2% previous
  • Australia’s house price index (q/q) slips by 0.2% vs. 0.6% expected, 1.9% previous
  • AU NAB business confidence slips from 9 to 6 in November
  • AU NAB business confidence slips from 9 to 6 in November
  • Major Events/Reports:

    Australia’s NAB survey

    Data from National Australia Bank (NAB) printed earlier today saw pullbacks for both business confidence and conditions compared to the month of October.

    Business conditions dropped from 21 to 12 for the month, which NAB says is still well above the long-run average of the report.

    The weakness was seen across the industries, though construction saw the benefits of additional infrastructure spending, large residential property pipeline, and a rise in non-residential construction activity.

    Meanwhile business confidence also slipped, as it fell 3 points to +6. Firms cited wage pressures and demand outlook as concerns, though forward orders continued to point to strength in non-mining industries.

    While the numbers are still consistent with wage growth, the pullback was enough for some Aussie bears to attack.

    Mixed risk sentiment

    The release of top-tier reports starting later today caused a bit of cautiousness in the Asian bourses.

    • Nikkei is down by 0.13% to 22,909.00;
    • Australia’s A SX 200 is up by 0.19% to 6,009.50;
    • Hang Seng is down by 0.49% to 28,822.00, and
    • China’s A50 is down by 0.80% to 13,161.58.

    Oil prices caught a bullish momentum, though, thanks to a crack causing an unplanned closure of a major North Sea pipeline. Word around is that it has a capacity of 450,000 barrels per day (bpd), which is pretty hefty on top of OPEC’s already imposed limits.

    • U.S. crude oil prices is up by 0.53% to $58.30 while
    • Brent crude oil is up by 1.07% to $65.38.

    Major Market Mover(s):

    NZD

    The New Zealand dollar extended its gains against its major counterparts as traders continued to cheer the appointment of Adrian Orr as the next Reserve Bank of New Zealand (RBNZ) Governor.

    NZD/USD is up by 13 pips (+0.19%) to .6929;
    NZD/JPY is up by 16 pips (+0.20%) to 78.65, and
    AUD/NZD is down by 23 pips (-0.21%) to 1.0868.

    GBP

    The pound stayed near its post-U.S. session lows despite Theresa May’s optimism in her Brexit speech in front of Parliament. Word around the hood is that forex traders are taking profits and/or positioning ahead of U.K.’s top-tier data due this week.

    GBP/USD is still at 1.3345;
    GBP/JPY is stagnant below 151.50;
    EUR/GBP is near .8825, and
    GBP/AUD can’t make a clear jump above 1.7700.

    Watch Out For:

    • 6:30 am GMT: France’s final private payroll (q/q) expected to maintain 0.2% growth
    • 9:30 am GMT: U.K.’s CPI (y/y) to remain at 3.0% in November?
    • 9:30 am GMT: U.K.’s core CPI expected to remain at 2.7%
    • 9:30 am GMT: U.K.’s house price index (y/y) (5.2% expected, 5.4% previous)
    • 9:30 am GMT: U.K.’s PPI output (0.2% expected and previous)
    • 10:00 am GMT: Germany’s ZEW economic sentiment (17.9 expected, 18.7 previous)