Search ForexCrunch

In a market wrap, analysts at Westpac note that Asian equities’ pessimistic mood turned to mixed trade in Europe and then moderate gains in the US, where the Oct services ISM supported optimism.  

Key Quotes:

“Enforcement of US sanctions on Iran’s energy and financial sectors commenced Monday, offering something other than US politics to focus on. Brent crude oil snapped a  5 day  losing streak, up about 1%. President Trump said he allowed temporary waivers for 8 countries buying oil from Iran “because I don’t want to drive the oil prices in the world up.”

“EUR/USD bounced off 1.1354 to 1.1415. GBP/USD was also choppy as competing media stories on Brexit generated confusion. At its lows around 1.2965, cable had wiped out its Monday opening bounce but it rebounded to 1.3045 late NY. USD/JPY was flat, trading in the low 113s.”

“AUD/USD was quiet overall, eventually ticking up 20 pips in the NY afternoon to 0.7215. NZD rose from 0.6635 in Sydney trade to 0.6670. AUD/NZD was barely lower at 1.0810.”

“AUD/USD edged up a fraction to 0.7210 in mostly muted markets”

“Today we see the RBA policy decision, the dairy auction and it is US Election Day but results aren’t due until well into Wednesday Sydney time.”

“US services sector activity cooled in October, the ISM survey falling back from record levels in September at 61.6 to a still very solid 60.3. The underlying detail on new orders, prices paid and employment all moderated a touch but remain at lofty levels too, consistent with ongoing strong momentum in the services sector.”