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The dollar was the biggest mover of the session as Asian session forex traders focused on tax-related updates and Trump’s upcoming speech in South Korea.

Meanwhile, the Asian bourses and commodity prices ended the session with mixed results.

  • China’s trade surplus (in CNY) up from 193B to 254B vs. 275B expected in October
  • China’s trade surplus (in USD) up from 28.5B to 38.2B vs. 39.4B expected in October
  • Japan’s leading indicators down from 107.2% to 106.6%
  • Trump to NoKor: “Do not underestimate us. And do not try us.”

Major Events/Reports:

China’s trade balance

Data from the world’s second-largest economy saw trade activity improving further in October.

China’s trade surplus widened from $28.5 to about $32.2B in October, which just missed expectations of a $39.5B surplus. In yuan terms, this translates to a surplus of 254B against expectations of a 275B surplus and September’s 193B reading.

Details tell us that exports climbed by 6.9% from a year earlier in October following an 8.1% increase in September. Analysts had expected a 7.1% increase, and softening global demand had been put forward as one of the reasons why the figure missed.

Meanwhile, imports popped up by another 17.2%, which is higher than the expected 16.0% increase but is slightly lower than September’s 18.7% uptick. That’s the 12th straight month of imports growth, yo!

Market players paid close attention to China’s trade surplus against the U.S., which narrowed to $26.62B from a record high of $28.08B in September.

Despite that, today’s numbers put China on track to surpass its 2016 trade surplus numbers against Uncle Sam. Will the Donald make significant remarks over trade relations in his China visit this week? Or will he be too busy trying to tweet over the Great Firewall of China?

More dollar selloff

Asian session traders caught up to their U.S. counterparts in pricing in doubts about the Republicans’ tax plan. Specifically, analysts worried over the possibility of the lawmakers delaying implementation of a major corporate tax cut by a year.

It also didn’t help that Trump was scheduled to speak in South Korea before he leaves for China and market players worried that we’ll get more dollar-bearish “fire and fury” comments from the POTUS.

But aside from a canceled surprise trip to DMZ, the only thing worth noting about Trump’s day is his warning against more provocations from North Korea, saying that it “would be a fatal miscalculation.” The Donald also added that “This is a very different administration than the United States has had in the past. Do not underestimate us. And do not try us.

Overall risk appetite

A weaker dollar and a pretty chill Asian session trading encouraged risk-taking today. Nikkei and oil prices were exceptions, however, thanks to a bit of profit-taking from the bulls.

  • Nikkei is down by 0.28% to 22,874.00;
  • Australia’s A SX 200 is up by 0.13% to 6,022.30;
  • Hang Seng is up by 0.29% to 29.078.50, and
  • China’s A50 is up by 0.78% to 13,041.51.

Meanwhile,

  • Gold is up by 0.17% to $1,277.92;
  • Silver is up by 0.40% to $14.007;
  • Brent crude oil is down by 0.22% to $63.55, and
  • U.S. crude oil prices is down by 0.33% to $57.01.

Major Market Mover(s):

USD

The Greenback was the biggest loser in today’s Asian session trading as market players priced in concerns over the tax reform schedule and Trump’s speech before he leaves Korea.

EUR/USD is up by 10 pips (+0.09%) to 1.1597;
USD/CHF is down by 10 pips (-0.10%) to .9989, and
USD/CAD is down by 19 pips (-0.15%) to 1.2767.

Watch Out For:

  • 7:45 am GMT: France’s trade balance (-4.7B EUR expected, -4.5B EUR previous)