Talking Points
Yen Rallies on Haven Demand, NZ Dollar Up on Supportive Data in Asian Trade
Australian Dollar Sold as Chinese Exports Unexpectedly Fall in September
S&P 500 Futures Point to Risk Aversion Ahead as US Debt Impasse Continues
The Japanese Yen outperformed in overnight trade as most Asian stocks declined, driving demand for the safe-haven currency. Regional bourses edged lower after US policymakers failed to reach a budget accord over the weekend even as the October 17 deadline to increase the so-called “debt ceiling” looms ever-closer. The New Zealand Dollar rose on the back of supportive economic data showing service-sector activity and house sales growth accelerated in September.
The Australian Dollar proved weakest on the session, sliding as much as 0.6 percent on average against its top counterparts, in the wake of disappointing Chinese trade data released over the weekend. Beijing reported that exports unexpected fell -0.3 percent year-on-year in September, marking the first decline in three months.
Looking ahead, a quiet European economic calendar is likely to keep sentiment trends in the diver’s set. S&P 500 futures are pointing sharply lower, hinting at continued risk aversion in the hours ahead. The landscape remains clouded in uncertainty however as US lawmakers continue to negotiate, leaving the door open for an unexpected headline to spark an about-face across the financial markets.
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Asia Session:
GMT
CCY
EVENT
ACT
EXP
PREV
21:30
NZD
Performance Services Index (SEP)
55.6
–
53.3
23:00
NZD
REINZ Housing Price Index (SEP)
3778.1
–
3746.6
23:00
NZD
REINZ House Price Index (MoM) (SEP)
0.8%
–
2.1%
23:00
NZD
REINZ House Sales (YoY) (SEP)
19.0%
–
8.5%
0:30
AUD
Credit Card Balances (AUG)
A$48.9B
–
A$49.2B
0:30
AUD
Credit Card Purchases (AUG)
A$21.8B
–
A$23.0B
0:30
AUD
Home Loans (AUG)
-3.9%
-2.5%
2.1%
0:30
AUD
Investment Lending (AUG)
0.0%
–
2.9%
0:30
AUD
Value of Loans (MoM) (AUG)
-1.9%
–
0.0%
1:30
CNY
Consumer Price Index (YoY) (SEP)
3.1%
2.8%
2.6%
1:30
CNY
Producer Price Index (YoY) (SEP)
-1.3%
-1.4%
-1.6%
Euro Session:
GMT
CCY
EVENT
EXP/ACT
PREV
IMPACT
7:15
CHF
Producer & Import Prices (MoM)
0.1% (A)
0.2%
Low
7:15
CHF
Producer & Import Prices (YoY)
0.0% (A)
0.2%
Low
8:00
CNY
New Yuan Loans (SEP)
787.0B (A)
711.0B
Low
8:00
CNY
Foreign Reserves (SEP)
$3660.0B (A)
$3496.7B
Low
8:00
CNY
Money Supply M2 (YoY)
14.2% (A)
14.70%
Medium
8:00
CNY
Aggregate RMB Financing (SEP)
1400.0B (A)
1570.0B
Low
9:00
EUR
Euro-Zone Industrial Production (MoM)
0.8%
-1.5%
Medium
9:00
EUR
Euro-Zone Industrial Production (YoY)
-2.5%
-2.1%
Medium
13:00
EUR
Eurozone Finance Ministers Meeting
–
–
Medium
Critical Levels:
CCY
SUPP 3
SUPP 2
SUPP 1
Pivot Point
RES 1
RES 2
RES 3
EURUSD
GBPUSD
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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Source: Daily fx