17 Oct 2013
Session Recap: DC kicks the can down the road and the globe breathes a sigh of relief
FXstreet.com (Barcelona) - Everyone around the world knows that we may be in for a re-run of this hideous display of pettiness and unbearable partisanship in just a couple of months. But, Americans and international investors would agree that it’s nice to not have to deal with “limit down” futures – which was a real possibility if “the deal” didn’t get done.
Data during the Asia session was light, but took a backseat to the Washington news
Traders in the Australian pairs got some actual economic data off of which they could trade Thursday. First the National Australia Bank’s Business Confidence came out better than analysts’ expectations even as actual business conditions remained subdued. The initial reaction in the Aussie Dollar was bullish – but that reaction faded in fairly short order.
The other bit of meaningful datsa came from China in the form of their foreign direct investment data – which came out slightly lower than expectations and lower on a month-over-month basis. The news may not have initiated the selling of the Aussie Dollar and other risk currencies, but it certainly did not help either.
The trading action is pointing gently to some modest safe harbor buying early on Thursday
We are currently noticing weakness in the Aussie Dollar. However, that weakness is not infecting the Canadian Dollar or euro – the other two risk currencies. Meanwhile, strength can be found in the Yen and the Swiss Franc – two of the three traditional “safety” currencies. Only the DXY is trading lower in terms of the safe-harbor currencies.
Main headlines in Asia
New Zealand economic expansion to continue through 2015 - Westpac
Japanese retailers slowing AUD selling in toshin market - Nomura
Why the USD is likely to struggle into year-end
US Senate approves deal to raise debt limit, fund government
No more RBA cuts expected, 4% rate by H1 2016 - ANZ
Australian business confidence highest in 2 years
Uncorrelated risk adverse behavior’s back in Asian equity results
China: FDI - Foreign Direct Investment (YTD)(YoY) (September): 6.2% vs 6.37%
Data during the Asia session was light, but took a backseat to the Washington news
Traders in the Australian pairs got some actual economic data off of which they could trade Thursday. First the National Australia Bank’s Business Confidence came out better than analysts’ expectations even as actual business conditions remained subdued. The initial reaction in the Aussie Dollar was bullish – but that reaction faded in fairly short order.
The other bit of meaningful datsa came from China in the form of their foreign direct investment data – which came out slightly lower than expectations and lower on a month-over-month basis. The news may not have initiated the selling of the Aussie Dollar and other risk currencies, but it certainly did not help either.
The trading action is pointing gently to some modest safe harbor buying early on Thursday
We are currently noticing weakness in the Aussie Dollar. However, that weakness is not infecting the Canadian Dollar or euro – the other two risk currencies. Meanwhile, strength can be found in the Yen and the Swiss Franc – two of the three traditional “safety” currencies. Only the DXY is trading lower in terms of the safe-harbor currencies.
Main headlines in Asia
New Zealand economic expansion to continue through 2015 - Westpac
Japanese retailers slowing AUD selling in toshin market - Nomura
Why the USD is likely to struggle into year-end
US Senate approves deal to raise debt limit, fund government
No more RBA cuts expected, 4% rate by H1 2016 - ANZ
Australian business confidence highest in 2 years
Uncorrelated risk adverse behavior’s back in Asian equity results
China: FDI - Foreign Direct Investment (YTD)(YoY) (September): 6.2% vs 6.37%