Asian session players didn’t pick up on the risk-friendly vibe from the previous sessions. Instead, traders took some profits off ahead of the monster NFP report and the weekend.
- AU retail sales inches up by 0.2% in September vs. 0.3% growth in August
- AU PPI (q/q) jumps by 0.8% vs. 0.2% expected, 0.3% previous
Australia’s data releases
Data printed earlier showed Australia’s retail sales rising by 0.2% in September. The uptick missed analysts’ expectations (and August’s gain) of 0.3%.
Turns out, sales of cafes, restaurants, and takeaway slowed down while sales of clothing, footwear and personal accessories declined from a month ago.
Meanwhile, a quarterly report reflected a 0.8% jump in Australia’s producer prices. This is much faster than the 0.2% growth that analysts had estimated and the 0.3% uptick seen in Q2. Ditto for its annualized growth, which saw a 2.1% increase after Q2’s 1.5% gain.
Mixed trading ahead of the weekend
What’s an NFP day without tight moves in the Asian markets, amirite?
As mentioned in the U.S. session recap, traders cheered both President Trump and China’s Xi Jinping hinting that trade-related discussions are “moving long nicely.”
However, some traders took the session to lighten up on their higher-yielding bets. For one thing, the NFP report is up and any significant hit or misses can affect the demand for the dollar.
And then there’s this weekend, which marks the last before the U.S. conducts its mid-term elections. Exciting times!
- Nikkei is up by 0.63% to 21,823.6
- A SX 200 is down by 0.46% to 5,788.3
- Hang Seng is up by 2.40% to 26,026.2
- Shanghai index is up by 1.21% to 2,537.653
Market bears didn’t spare the major commodities, which took hits from a slightly stronger dollar.
Crude oil also saw extra bearish pressure from reports that the world’s top three crude oil producers saw record output in October.
Of course, it also didn’t help that Trump shared in a memo that “there is a sufficient supply of petroleum and petroleum products from countries other than Iran” ahead of the implementation of Iran’s sanctions on November 5.
- Gold is down by 0.08% to $1,232.32 per troy ounce
- Brent crude oil is down by 0.20% to $63.38 per barrel
- U.S. WTI is down by 0.15% to $72.60 per barrel
Planning on trading the NFP report? If you are, then y’all better read our short trading guide!
Major Market Mover(s):
A disappointing retail sales report and a bit of profit-taking from the previous session dragged the Aussie lower against its major counterparts.
AUD/USD is down by 7 pips (-0.08%) to .7199; AUD/JPY is down by 8 pips (-0.10%) to 81.13; AUD/NZD is down by 9 pips (-0.08%) to 1.0818; EUR/AUD is up by 5 pips (+0.03%) to 1.5836, and GBP/AUD is up by 8 pips (+0.04%) to 1.8039.
The pound failed to sustain its bullish momentum as traders take profits from their gains ahead of the weekend.
GBP/USD is down by 11 pips (-0.08%) to 1.2987; GBP/JPY is down by 7 pips (-0.05%) to 146.35; EUR/GBP is up by 9 pips (+0.10%) to .8778, and GBP/NZD is down by 16 pips (-0.08%) to 1.9515.
There were no direct catalysts to explain the move, but the low-yielding franc ended up at the top of the forex hill during the Asian session. One possible reason is that some traders had taken their higher-yielding bets off and stayed away from the dollar ahead of the U.S. NFP report and the weekend.
EUR/CHF is down by 12 pips (-0.10%) to 1.1420; CAD/CHF is down by 9 pips (-0.11%) to .7649; GBP/CHF is down by 10 pips (-0.08%) to 1.3009, and CHF/JPY is up by 5 pips (+0.04%) to 112.50.
Lower crude oil prices and a bit of profit-taking sent the Loonie lower across the board.
USD/CAD is up by 10 pips (+0.07%) to 1.3096; CAD/CHF is down by 9 pips (-0.11%) to .7649; CAD/JPY is down by 6 pips (-0.07%) to 86.06, and NZD/CAD is up by 11 pips (+0.11%) to .8715.
Watch Out For:
- 7:00 am GMT: Germany’s import prices (0.4% expected, 0.0% previous)
- 7:45 am GMT: France’s government budget balance
- 8:15 am GMT: Switzerland’s retail sales (y/y) (-0.2% expected, 0.4% previous)
- 8:15 am GMT: Spain’s manufacturing PMI (51.0 expected, 51.4 previous)
- 8:45 am GMT: Italy’s manufacturing PMI (49.7 expected, 50.0 previous)
- 8:50 am GMT: No changes expected from France’s final manufacturing PMI (51.2)
- 8:55 am GMT: Germany’s final manufacturing PMI to remain at 52.3?
- 9:00 am GMT: Euro Zone’s final manufacturing PMI expected to maintain its 52.1 reading
- 9:30 am GMT: U.K.’s construction PMI (52.0 expected, 52.1 previous)