Caution ahead of today’s NFP report kept Asian session traders in the sidelines. It didn’t hold back the Aussie bears, though, especially after a surprisingly weak trade report from Australia.
- Japan’s monetary base (y/y) up by 11.2% vs. 13.1% expected, 13.2% previous
- U.K.’s BRC shop price index (y/y) slips by 0.6% vs. 0.1% dip in November
- Australia’s trade balance shows 0.63B AUD deficit vs. 0.55B surplus expected in November
Australia’s trade balance
The only major data printed earlier was Australia’s trade numbers and, boy, did it deliver intraday volatility.
See, Australia printed a trade deficit of 0.63B AUD for the month of November, which is not only weaker than October’s 0.30B deficit in October but is a disappointment for those who only saw a 0.55B deficit.
A closer look tells us that imports were flat for the month while imports ticked 1.0% higher from October to November.
Market players were shook by the numbers considering that the Land Down Under was actually seeing decent gains in its commodity and services exports while commodity prices AND global demand are generally showing improvements.
Tight trading ahead of NFP…or not.
Another month, another chance to trade the NFP! And in true pre-NFP fashion, a lot of Asian session traders stayed in the sidelines…until they didn’t. As you can see in your charts, high-yielding assets received a bit of a boost just as the session was coming to its mid-day break.
- Nikkei gained 0.55% to 23,635.7;
- Australia’s A SX 200 is up by 0.28% to 6,118.6;
- Hang Seng is up by 0.18% to 30.791.6, and
- Shanghai index is up by 0.23% to 3,393.66.
Commodity prices were a little bit more mixed, however.
- Gold is down by another 0.05% to $1,321.48;
- Brent crude oil is flat at $67.96, and
- U.S. WTI is up by 0.05% to $61.91.
Major Market Mover(s):
The Aussie took hits across the board following a surprising downgrade of October’s trade numbers AND a wider-than-expected deficit for the month of November.
AUD/USD is down by 7 pips (-0.09%) to .7857;
GBP/AUD is up by 28 pips (+0.16%) to 1.7265;
AUD/CAD is down by 7 pips (-0.07%) to .9812, and
AUD/NZD is down by 16 pips (-0.15%) to 1.0976.
Watch Out For:
- 7:00 am GMT: Germany’s retail sales (1.0% expected, -1.2% previous)
- 7:45 am GMT: France’s preliminary CPI (0.3% expected, 0.1% previous)
- 9:10 am GMT: Euro Zone’s retail PMI
- 10:00 am GMT: Euro Zone’s flash CPI estimate (y/y) (1.4% expected, 1.5% previous)
- 10:00 am GMT: Euro Zone flash core CPI (y/y) (1.0% expected, 0.9% previous)
- 10:00 am GMT: Euro Zone PPI (0.3% expected, 0.4% previous)
- 10:00 am GMT: Italy’s preliminary CPI (0.2% expected, -0.2% previous)