Forex price action was as exciting as watching paint dry, as a lack of fresh catalysts ahead of big events pushed traders to the sidelines.
- NZ visitor arrivals dips by 5.3% vs. 4.9% uptick in June
- NZ credit card spending (y/y) up by 7.2% vs. 8.3% uptick in June
- U.K. Rightmove house price index down by 0.9% vs. 0.1% increase in July
- Japan’s all industries activity up by 0.4% vs. 0.5% expected, -0.8% previous
Triple threat for risk appetite
With not a lot of major economic reports on the docket, Asian session traders mostly stuck to the sidelines ahead of this week’s Jackson Hole Symposium.
Asian bourses were a mixed bag of beans as traders caught up to last Friday’s headlines. If you recall, White House advisor Steven Bannon left his post, which reinforced concerns that the Donald would take an even longer time before he can fulfill his campaign promises (read: tax and infrastructure projects).
Of course, it also didn’t hurt that the U.S. and South Korea started their 10-day joint military exercises today. North Korea warned that it would be like “pouring gasoline on the fire,” and that “the exercises worsen the state of the peninsula.”
Last but not the least is anticipation of this week’s meetings/pressers in Jackson Hole. Though “sources familiar with the situation” shared that Draghi won’t be delivering new policy messages, some traders have decided to take their positions off the table nonetheless.
Nikkei is down by 0.35% to 19,402.50,
Australia’s A SX 200 is down by 0.81% to 5,700.30,
Hang Seng is up by 0.49% to 27,179.00, and
Shanghai index is up by 0.05% to 11,651.56.
Major Market Mover(s):
Risk aversion and a bit of profit-taking ahead of this week’s big events sent traders into the arms of low-yielding currencies like the yen.
USD/JPY is down by 11 pips (-0.10%) to 109.25,
EUR/JPY is down by 18 pips (-0.14%) to 128.42,
CHF/JPY is down by 10 pips (-0.09%) to 113.17, and
AUD/JPY is down by 12 pips (-0.14%) to 86.59.
Watch Out For:
- 11:00 am GMT: Germany’s Bundesbank monthly report