View our guide on how to interpret the FX Dashboard
- Officials from US and China have confirmed that both sides could roll back tariffs as part of the phase one trade deal, although no timetable has been presented.
- Chinese exports rose 2.1% YoY (Yuan-denominated), pushing their trade surplus up to 42.8 billion versus 40.4. Imports also fell -6.4%, less than the expected 8.9% forecast.
- Australian home loans rose for a second month thanks to record low rates and rising house prices. Yet until we see the rest of the economy follow suit (wages, inflation, consumption and a lower debt to savings ratio) it’s unlikely to call for higher rates, unless RBA targets rising house prices for once…
- Household spending rose 9.5% YoY in Japan, its fastest pace since 2001. Still it was fully expected according with the pending sales tax hikes just around the corner. The last time Japan hiked sales taxes, a similar pattern emerged only to see consumption crash the following months.
- AUD is the weakest major, minor ranges elsewhere across the FX space. AUD/JPY saw the most volatility, with its daily range spanning 87% of it ATR. Moreover, it’s found this volatility around the 200-day eMA, although today’s bearish price action has remained within yesterday’s range.
- Key Asian stock markets have not taken the positive cue from the U.S. stock market where all three benchmark indices; S&P 500, Nasdaq 100 and Dow Jones Industrials hit another fresh all-time highs on the backdrop of U.S-China trade deal optimism after the Chinese Commence Ministry commented that both sides had agreed to roll back some of the imposed tariffs.
- The latest trade deal related news flow from the U.S. has been lukewarm where media has reported from unnamed sources that an agreement between U.S. and China to roll back existing tariffs as part of the “Phase One trade deal” has faced fierce internal opposition in the White House and even from outside advisors. So far, the U.S. Trade Representative’s office has not commented on whether or not there will be tariff rollbacks.
- The markets are appearing to get “lethargic” on such “hot and cold” trade deal related headlines without any concrete direction where it will lead until a real deal is being signed off.
- Almost all Asian stock markets are in the red after hitting 5-6 months highs. The worst performer is Singapore’s Straits Times Index (STI) that has dropped by -0.79% so far led by Golden Agri-Resources, Ascendas Real Estate Investment Trust and Genting Singapore that have tumbled by -6.52%, -5.45% and -3.13% respectively.
- Casino operator, Genting Singapore has reported a weak Q3 earnings where net profit has dropped to S$158.9 million from S$210.4 million y/y and revenue fell about 7% which has triggered a negative reaction on its share price; it drop as much as 3.7% to hit a current intraday low of S$0.925, the biggest intraday percent drop in 4-months.
- The 10-year Japanese Bond Government (JGB) yield has continued to inch higher in line with the rest of the developed nations’ sovereign bond yield, on track for its biggest weekly climb since May 2013. An increase in JGB yield can trigger a liquidity tightening condition that explains the earlier intraday gain of 1% seen in the Nikkei 225 has been reversed to the downside.
- BoC surprised markets with a dovish meeting last month by lowering their projections. This means CAD traders may be more sensitive to a weak employment print later today, had they been otherwise.
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.