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Risk-taking was the name of the game during the Asian session, as traders caught up to the post-NFP party and priced in a few upbeat releases.

  • Japan’s monetary base expands by 8.1% from a year earlier in May (7.4% expected, 7.8% previous)
  • AU MI inflation gauge flat in May vs. 0.5% uptick in April
  • AU retail sales shoots up by 0.4% vs. 0.3% expected, 0.0% previous
  • AU company operating profits (q/q) jumps by 5.9% vs. 3.1% expected, 2.8% previous
  • AU company operating profits (q/q) jumps by 5.9% vs. 3.1% expected, 2.8% previous

Major Events/Reports:

Upbeat Australian reports

All green! Reports from the Land Down Under extended the bullish party that started during the NFP release.

Australia’s retail sales improved by 0.4% in April, which beat the 0.0% reading in March and the 0.3% uptick that analysts had expected.

Cafes, restaurants, and takeaways sales led the expansion, while retailing, household goods, and food retailing also continued to rebound.

Meanwhile, a separate report showed gross profits of Australia’s companies rising by 5.9% in Q1 2018. What’s more, wages and salaries also saw a 0.8% bump for the quarter!

The figures supported whispers that we’ll see a stronger GDP report this week, which is probably why the Aussie easily beat its counterparts across the board.

Risk-taking in the markets

Asian session traders caught up to their U.S. counterparts to price in Uncle Sam’s upbeat NFP report.

If you recall, the economy churned 223,000 jobs and the unemployment rate dipped to an 18-year low last month as warm weather encouraged more construction-related jobs.

Add this to Australia’s strong reports and Italy FINALLY swearing in a coalition government over the weekend and you’ve got a cocktail of good (read: risk-friendly) news to start the week.

  • Nikkei is up by 1.43% to 22,485.4
  • A SX 200 is down by 0.07% to 6,026.7
  • Hang Seng is up by 1.24% to 30,889.9
  • Shanghai index is up by 0.22% to 3,081.765

Meanwhile, gold inched higher as the dollar gave ground to its higher-yielding counterparts and crude oil encountered some pressure over after the U.S. showed higher production output and expectations of the same from OPEC.

  • Gold is up by 0.03% to $1,293.37
  • Brent crude oil is down by 0.09% to $76.50
  • U.S. WTI is up by 0.05% to $65.72

Major Market Mover(s):

AUD and NZD

The Aussie found support from strong Australian data, risk-taking, and possibly even short-covering. Meanwhile, the high-yielding Kiwi also took advantage of the upbeat mood in the markets.

AUD/USD is up by 47 pips (+0.62%) to .7612
AUD/JPY is up by 59 pips (+0.71%) to 83.44
AUD/CHF is up by 44 pips (+0.59%) to .7516

NZD/USD is up by 18 pips (+0.26%) to .7004
NZD/JPY is up by 36 pips (+0.46%) to 76.77
NZD/CHF is up by 25 pips (+0.36%) to .6916

EUR

Like the Aussie and Kiwi, the euro also rode the risk appetite train. And also like the comdolls above, the common currency saw its biggest victories against the low-yielding currencies.

EUR/USD is up by 38 pips (+0.32%) to 1.1695
EUR/JPY is up by 56 pips (+0.44%) to 128.19
EUR/CHF is up by 36 pips (+0.31%) to 1.1548

Watch Out For:

  • 7:00 am GMT: Spain’s unemployment change (-105.7K expected, -86.7K previous)
  • 8:30 am GMT: Euro Zone’s Sentix investor confidence (18.6 expected, 19.2 previous)
  • 8:30 am GMT: U.K.’s construction PMI (52.0 expected, 52.5 previous)
  • 9:00 am GMT: Euro Zone PPI (0.2% expected, 0.1% previous)