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Ho-hum. Thanks to a lack of fresh catalysts, Asian session market players extended their momentum from the previous sessions.

  • NZ visitor arrivals jumps by 4.0% in October vs. 1.7% dip in September
  • Japan’s national core CPI (y/y) up by another 1.0% as expected in October
  • Republican senators urge vote on new NAFTA deal this year

Major Events/Reports:

Japan’s weak CPI growth

Data printed earlier today showed that Japan’s consumer price growth remain well below the BOJ’s targets.

Japan’s national CPI rose by 1.4% from a year earlier in October, which is better than the 1.2% uptick seen in September and marked the highest rate since February.

However, the national average core CPI, which excludes volatile items like food, maintained its 1.0% annualized growth following a similar growth rate in September.

Analysts weren’t too impressed with today’s numbers especially since about half of the price gains were due to higher energy costs.

With energy costs seeing weaknesses and Japan exposed to the U.S.-China trade drama, market geeks don’t see Japan’s consumers getting excited about purchasing more goods anytime soon.

This is bad news for the BOJ, which has been throwing everything but the kitchen sink to stimulate consumer prices for the past couple of years.

Cautious risk-taking

As in the last few days, there were no fresh catalysts that moved the Asian bourses in a specific direction.

So, traders once again took cues from their U.S. counterparts. That is, the bears also took a chill pill and let the bulls party a bit after steep losses earlier this week.

  • Nikkei is up by 0.24% to 21,559.1
  • A SX 200 is up by 0.32% to 5,684.2
  • Shanghai index is down by 0.55% to 2,636.964
  • Hang Seng is up by 0.04% to 25,981.7

Commodity prices were a little more mixed, with gold taking advantage of a weaker dollar demand. Meanwhile, crude oil benchmarks went back to sliding down the charts after getting a reprieve in the earlier trading session.

  • Gold is up by 0.12% to $1,227.25 per troy ounce
  • Brent crude oil is down by 0.35% to $63.26 per barrel
  • U.S. WTI is down by 0.31% to $54.41 per barrel

Major Market Mover(s):

AUD and NZD

The Aussie and Kiwi took hits as some traders went back to worrying about global growth slowdown and the impact of a U.S.-China trade war.

Of course, it also didn’t help that copper prices took heavy hits and dragged the comdolls along with it.

AUD/USD is down by 13 pips (-0.18%) to .7250; AUD/JPY is down by 20 pips (-0.24%) to 81.92; AUD/CAD is down by 21 pips (-0.22%) to .8588; AUD/CHF is down by 18 pips (-0.25%) to .7205; EUR/AUD is up by 47 pips (+0.30%) to 1.5720; GBP/AUD is up by 40 pips (+0.23%) to 1.7692, and AUD/NZD is up by 17 pips (+0.16%) to 1.0644.

NZD/USD is down by 22 pips (-0.33%) to .6811; NZD/JPY is down by 29 pips (-0.37%) to 76.96; EUR/NZD is up by 72 pips (+0.43%) to 1.6732; GBP/NZD is up by 69 pips (+0.37%) to 1.8765, and NZD/CHF is down by 25 pips (-0.37%) to .6769.

EUR

There were no direct catalysts to boost the euro, but some Asian session players might have caught the optimism bug and priced in a resolution to Italy’s debt drama now that the EU has taken steps to disciplining the Italian government over its latest budget plans.

EUR/USD is up by 13 pips (+0.11%) to 1.1397; EUR/JPY is up by 8 pips (+0.06%) to 128.78; EUR/GBP is up by 7 pips (+0.08%) to .8917; EUR/CHF is up by 5 pips (+0.04%) to 1.1327, and EUR/CAD is up by 11 pips (+0.07%) to 1.5072.

USD

Weaker-than-expected lower-tier U.S. economic reports and weaknesses in U.S. Treasuries caused the dollar to give up a pip or two against some of its counterparts.

USD/JPY is down by 7 pips (-0.06%) to 112.99; USD/CHF is down by 6 pips (-0.06%) to .9939; GBP/USD is up by 5 pips (+0.04%) to 1.2781, and EUR/USD is up by 13 pips (+0.11%) to 1.1397.

Watch Out For:

  • 12:30 pm GMT: ECB’s monetary policy meeting accounts