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With not a lot of top-tier reports on deck, Asian session forex traders focused on pricing in yesterday’s headlines and this week’s upcoming catalysts.

  • 10:00 am GMT: Euro Zone’s ZEW economic sentiment (28.1 expected, 29.3 previous)
  • Australia’s house price index (q/q) up by 1.0% vs. 0.1% expected, -0.2% previous
  • RBA’s minutes: household balance sheets warrant “careful monitoring”
  • RBA’s minutes: an appreciating exchange rate would result in slower activity and inflation

Major Events/Reports:

RBA’s meeting minutes

Earlier this month we saw the Reserve Bank of Australia (RBA) maintain its interest rates at 1.50%.

As in the statement, the RBA’s meeting minutes noted the central bank’s optimism over Australia’s broad-based growth and improvements in the labor market.

However, Philip Lowe and his team also noted that “improvement in overall (labor) conditions had not yet translated into a definitive pick-up in wages growth” and that household debts remain high. This is why RBA now believes that household balance sheets “warranted careful monitoring.

More jitters ahead of Fed event

Asian session traders didn’t have a lot to go with catalyst-wise, so they just caught up to their European and U.S. counterparts.

If you recall, the euro found support from a not-so-dovish Reuters report while the pound was boosted by positive Brexit-related news. The combo inspired an overall risk-friendly vibe in the markets.

  • Gold is only down by 0.03% to $1,316.30;
  • Brent crude oil is up by 0.24% to $66.24, and
  • U.S. WTI is up by 0.23% to $62.33.

The Asian equity markets didn’t get the memo, however. Apparently, they’re still mostly worried about the Fed tightening too quickly and the Donald slapping on tariffs on China and other export-dependent Asian economies. It also didn’t help that the U.S. tech market was hit by the prospect of more regulations following Facebook’s data mess.

  • Nikkei is down by 0.75% to 21,320.3;
  • Austrlaia’s A SX 200 is down by 0.19% to 5,921.9;
  • Hang Seng is down by 0.54% to 31,344.2, and
  • Shanghai index is down by 0.26% to 3,270.818.

Major Market Mover(s):

The common currency continued to gather support on speculations that the ECB is legit normalizing its policy.

EUR/JPY is up by 27 pips (+0.21%) to 131.14;
EUR/NZD is up by 62 pips (+0.36%) to 1.7089;
EUR/AUD is up by 34 pips (+0.21%) to 1.6013, and
EUR/CHF is up by 16 pips (+0.13%) to 1.1747.

Much like the euro, the pound’s good vibes extended to today’s Asian session trading.

GBP/USD is up by 11 pips (+0.08%) to 1.4035;
GBP/JPY is up by 33 pips (+0.22%) to 149.10;
GBP/AUD is up by 40 pips (+0.22%) to 1.8207, and
GBP/CHF is up by 20 pips (+0.15%) to 1.3356.

Watch Out For:

  • 6:45 am GMT: Switzerland’s SECO economic forecasts
  • 6:45 am GMT: Switzerland’s SECO economic forecasts
  • 9:30 am GMT: U.K.’s CPI report (2.8% expected, 3.0% previous)
  • 9:30 am GMT: U.K.’s PPI input (-0.9% expected, 0.7% previous)
  • 9:30 am GMT: U.K.’s PPI output to remain at 0.1%?
  • 10:00 am GMT: Germany’s ZEW economic sentiment (13.1 expected, 17.8 previous
  • 10:00 am GMT: Euro Zone’s ZEW economic sentiment (28.1 expected, 29.3 previous)