Not a lot of top-tier reports to rock the markets this time, but that didn’t stop currency playas from being all over the place with their bets.
- Business NZ manufacturing index improves from 51.9 to 53.5 in October
NZ manufacturing index
The only notable data release during the Asian session showed New Zealand’s manufacturing sector expanding in October.
A manufacturing survey from Business NZ clocked in at 53.5, which is higher than September’s 51.9 figure and marks the fastest expansion reading since May.
Turns out, new orders and production improved, while employment finally printed a second consecutive expansion after seeing contractions earlier this year.
Mixed market sentiment
There were no fresh catalysts to influence market prices, so Asian session market players focused on pricing in (and taking profits from) events seen in the previous trading sessions.
Speculations that the U.S. might pause or even reverse its tariffs on Chinese products kept the Chinese markets in the green even as Reuters reported that China’s recent handwritten letter will unlikely “trigger a breakthrough” in the negotiations.
Meanwhile, other non-Chinese markets struggled to end the session with gains as disappointing numbers from U.S. chipmaker Nvidia Corp weighed on the tech sector.
- Nikkei is down by 0.31% to 21,735.5
- A SX 200 is down by 0.18% to 5,754.2
- Shanghai index is up by 0.71% to 2,687.043
- Hang Seng is up by 0.33% to 26,190.3
Commodity prices were a little more positive, with gold finding support from a bit of dollar weakness while oil prices extended their gains on the back of declining U.S. fuel stockpiles and speculations of OPEC cutting its output.
- Gold is up by 0.13% to $1,214.72 per troy ounce
- Brent crude oil is up by 0.63% to $67.07 per barrel
- U.S. WTI is up by 0.48% to $56.81 per barrel
Major Market Mover(s):
Loonie bulls were out to play today, as a combo of weaker dollar and stronger crude oil prices helped boost the comdoll.
USD/CAD is down by 18 pips (-0.14%) to 1.3159; CAD/CHF is up by 16 pips (+0.21%) to .7650; EUR/CAD is down by 11 pips (-0.08%) to 1.4915; GBP/CAD is up by 10 pips (+0.06%) to 1.6833, and AUD/CAD is down by 26 pips (-0.27%) to .9561.
The Kiwi found some support after the unofficial manufacturing PMI survey was released, but a bit of profit-taking soon took over to drag the currency lower.
NZD/USD is down by 4 pips (-0.05%) to .6823; NZD/JPY is down by 17 pips (-0.22%) to 77.38; NZD/CAD is down by 16 pips (-0.18%) to .8978; GBP/NZD is up by 54 pips (+0.29%) to 1.8747, and EUR/NZD is up by 27 pips (+0.16%) to 1.6612.
USD and CHF
There were no direct catalysts to explain the moves, but low-yielding currencies like the dollar and yen took steps back against their counterparts today.
Risk-taking could be a reason, though profit-taking from the week’s gains could have also enticed the bears.
USD/JPY is down by 22 pips (-0.19%) to 113.41; EUR/USD is up by 10 pips (+0.09%) to 1.1335, and GBP/USD is up by 24 pips (+0.18%) to 1.2692.
EUR/CHF is up by 12 pips (+0.11%) to 1.1410; GBP/CHF is up by 29 pips (+0.22%) to 1.2878; CHF/JPY is down by 17 pips (-0.15%) to 112.66, and USD/CHF is up by 6 pips (+0.06%) to 1.0067.
Watch Out For:
- 7:00 am GMT: Germany’s wholesale price index (0.2% expected, 0.4% previous)
- 8:30 am GMT: ECB President Draghi to give a speech at the Frankfurt European Banking Congress