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No major reports were printed today, so Asian session forex traders were all too happy to extend the previous session’s themes.

  • Australia’s MI leading index rises by 0.1% vs. 0.1% decline in August
  • China’s Xi Jinping: “The outlook is extremely bright; the challenges are also extremely grim.”

Major Events/Reports:

All good in the hood

With no fresh catalyst to rock market boats, Asian session traders took their cues from the previous sessions. And as mentioned in the U.S. session recap, it was supportive of the dollar and equities.

In case you missed the bulletin, FOMC members Harker and Kaplan shared a hawkish statement or two, which served as a good backdrop to already brewing speculations that the POTUS would pick Taylor, a hawkish candidate, as the next Fed head honcho.

And then there’s the upbeat U.S. data, which helped boost U.S. equities enough for Trump to RT related headlines.

The optimistic tone extended to the Asian session where traders priced in more rate hikes from the Fed and an upbeat equities market.

  • Nikkei is up by 0.05% to 21,347.00;
  • Australia’s A SX 200 is up by 0.11% to 5,895.80;
  • Hang Seng is up by 0.01% to 27,700.00, and
  • China’s A50 is up by 0.30% to 12,372.72.

Even commodities caught the optimism bug.

  • Gold prices inched 0.22% higher to $1,289.01 despite the dollar’s strength;
  • Silver rose by 0.30% to $17.092;
  • Brent crude oil edged 0.60% higher to $58.23, and
  • U.S. WTI rose by 0.35% to $52.06.

Major Market Mover(s):

NZD

The New Zealand dollar lost pips against its major counterparts as traders continued to price in a 1% drop in dairy prices printed earlier.

NZD/USD fell by 8 pips (-0.11%) to .7161;
NZD/JPY slipped by 8 pips (-0.10%) to 80.36;
GBP/NZD popped up by 32 pips (+0.17%) to 1.8417, and
AUD/NZD rocketed by 23 pips (+0.21%) to 1.0966.

AUD

Unlike Kiwi, the Aussie had a good trading day today. One possible reason is the MI leading index report, which rose 0.08% to 97.43 in September after declining by 0.1% in August. Of course, it also didn’t hurt that gold prices ticked higher during the session.

AUD/USD is up by 8 pips (+0.10%) to .7853;
AUD/JPY is up by 10 pips (+0.11%) to 88.13, and
GBP/AUD is down by 8 pips (-0.05%) to 1.6794.

CAD

Thanks to overall risk-taking and higher oil prices, the Loonie found support against its major counterparts.

USD/CAD is down by 26 pips (-0.21%) to 1.2502;
CAD/JPY is up by 19 pips (+0.21%) to 89.76;
GBP/CAD is down by 24 pips (-0.15%) to 1.6488, and
EUR/CAD is down by 29 pips (-0.20%) to 1.4714.

Watch Out For:

  • 8:10 am GMT: ECB’s Draghi to make a speech in Frankfurt
  • 8:30 am GMT: U.K.’s jobless rate, claimant count change, and average earnings. Read Forex Gump’s trading guide if you’re trading the event!