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.

Get Real-Time Feedback on Your Trades with DailyFX on Demand!

Asia Session:

GMT

CCY

EVENT

ACT

EXP