Forex today in Friday’s Asian trading was driven by the US dollar dynamics amid a risk-averse market environment, as the US political and trade worries continued to linger. Most majors traded in thin ranges, helped by broad-based US dollar retreat from three-week highs.
Amongst the G10 currencies, the Kiwi reversed the Reserve Bank of New Zealand (RBNZ) Governor Orr’s upbeat comments-led gains and dropped below 0.63 handle on poor NZ Consumer Confidence data and negative oil prices. Meanwhile, the Aussie emerged the strongest in Asia, somewhat underpinned by US-China trade optimism, as markets shrugged-off weak China’s industrial profits data. The Yen also traded firmer across the board, benefiting from falling Asian equities and Wall Street futures. However, the USD/JPY pair managed to stall its decline near 107.70. Gold prices posted small gains and remained above the 1500 level.
Ahead of the European open, the EUR/USD pair recovered to 1.0925, following a dip to fresh over two-year lows of 1.0905. The Cable traded better bid above 1.2300 ahead of the key Brexit talks and Parliamentary showdown.
Main Topics in Asia
Sources: China trade talks set to resume Oct. 10 – CNBC
Japan Tokyo CPI (YoY) Sep 0.4% (est 0.5%; prev 0.6%)
WTI ignores Middle East tensions following a bounce from 3-week-old support-line
China’s industrial profits drop 2.0% y/y in July, Aussie sticks to 0.6750
EU’s Juncker: We are doing all we can to reach a Brexit deal
Gold technical analysis: Consolidating between key support and resistances
Key Focus Ahead
Markets gear up for a relatively busy EUR macro calendar, kicking-off with German Import Price Index data due at 0600 GMT, followed by a slew of Eurozone consumer confidence and economic sentiment data, dropping in at 0900 GMT. Meanwhile, the UK docket remains absolutely data-dry, except for the speech by the BOE policymaker Saunders at 0700 GMT. The speech by the ECB Governing Council members De Guindos and Weidmann will be also closely eyed at 0715 GMT and 0910 GMT respectively.
Later in the NA session, the focus will remain on the US Durable Goods, Core PCE Price Index, Personal Spending data and Fed official Quarles’ speech, all which will be published at 1230 GMT. Also, of note remains the Michigan Consumer Sentiment Index at 1400 GMT and Baker Hughes US Oil Rig Count that will be released at 1700 GMT.
Further, the Brexit, geopolitical and trade developments will continue to have a significant impact on the market mood.
EUR/USD attempts recovery from YTD lows of 1.0905, will it last?
The US dollar bulls take a breather heading into the European open, allowing a tepid bounce in EUR/USD from fresh over two-year lows of 1.0905. However, the risks remain skewed to the downside ahead of the key US macro data.
GBP/USD pulls back from 2-week low ahead of Brexit talks, Parliament drama
GBP/USD traders seem to be tired of Brexit/UK political deadlock as the quote bounces off two-week low and holds the higher ground above 1.2300 ahead of the London open. All eyes of UK-EU Brexit negotiators’ meet in Brussels.
US Durable Goods Orders preview: Consumers have questions
Durable goods order expected to fall in August after hefty gain in July. Business investment to be flat. Lower consumer sentiment may dent spending.
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