27 Aug 2015
Aussie bulls hit by Capex, US Q2 GDP, Jackson Hole Symposium - Key
FXStreet (Mumbai) - Broad based US dollar retreat remained the underlying theme in Asia, with most G10 currencies enjoying gains amid improved risk sentiment as China stocks joined the Asian rally.
Key headlines in Asia
Australia's capex second estimate 2015/16 lower-than-expected
BoJ Kuroda speaking: Price target can be achieved
BoJ Kuroda: No plans for further easing
Asian stocks swing higher on strong Wall Street close, China leads the show
Dominating themes in Asia - centered on JPY, AUD, NZD
The US dollar edged lower against its major peers in Asia, reversing a part of its previous rally, as unwinding of USD longs was evidenced ahead of the key US GDP data due later today. While the greenback remained unperturbed by the prevalent risk-sentiment boosted by rebounding Asian equities.
USD strength dominated across the FX board on Wednesday as risk sentiment clawed its way back after several days of volatility and as US economic data was surprisingly upbeat. US durable goods orders surged 2.0% month-on-month in July, coming in much better than the forecast of a 0.4% decline, while core durable goods orders rose 0.6% over the same.
The Antipodeans struggles to extend the recovery as the Aussie was hurt by below estimates Australia’s capex data. Private capex fell 4.0% in the June quarter, according to the Australian Bureau of Statistics (ABS), coming in weaker than the consensus forecast of a 2.5% decline, but improving on the revised 4.7% slump recorded in the March quarter. While its OZ neighbor, the NZD is seen defending gains amid USD weakness and on renewed appetite for risk currency.
The dollar-yen pair is seen struggling around 120 barrier, receding from 120.37 highs reached in early Asia. The Japanese currency was little impacted by BOJ Kuroda’s speech delivered in early Asia. Although the safe-haven allure of yen was hit hard after Asian stocks firmed up today.
The Asian equities swung back higher following upbeat Wall Street close overnight, with the Hong Kong's benchmark Hang Seng index gaining 2.41% at 21588 while mainland China's benchmark Shanghai Composite pared gains and trades +1.55% at 2972. Among other Asian indices, the Japanese benchmark Nikkei 225 advances 1.36% at 18626 on weaker yen. While the benchmark Australian S&P/ASX 200 rebounded, now up 1.28% at 5238. Korea's benchmark Kospi index now trades +0.53% at 1,904 points in Seoul.
Heading into Europe - centered on EUR, GBP
Another calmer European session ahead, with a slew of 2nd-tier macro data to fill in a quiet EUR calendar.
While, ECB executive board member Benoit Coeure will participate in the Conférence des Ambassadeurs organized by Ministère des Affaires étrangères et du Développement international in Paris.
Looking towards the New York session, the main market mover on Thursday remains the US Q2 GDP results due later tonight. Markets expect that the second quarter GDP will rise a solid 3.2% when the first of two rounds of monthly revisions are unveiled by the Department of Commerce. That's a big improvement on the already decent 2.3% growth pace suggested by the initial estimate.
Besides, the weekly jobless claims and pending home sales data will also be closely watched while the key event – Jackson Hole Symposium.
The Economic Symposium, held in Jackson Hole, Wyoming, is attended by central bankers, finance ministers, academics, and financial market participants from around the world.
EUR/USD Technicals
AceTrader Research team noted, “Despite euro's rally to as high as a fresh 7-month peak at 1.1715 on Monday on dollar's broad-based selloff due to the near 600 points fall in Dow Jones Index, subsequent strong retreat suggests a temporary top has been made and consolidation with downside bias would be seen for a stronger retracement towards 1.1250/60, then 1.1214 later this week. However, near term loss of momentum would keep price above 1.1377 and yield a much-needed rebound.”
On the upside, only above 1.1562 would indicate aforesaid pullback has ended and turn outlook bullish for a re-test of said top, break would extend gain towards 1.1750/54.”
Key headlines in Asia
Australia's capex second estimate 2015/16 lower-than-expected
BoJ Kuroda speaking: Price target can be achieved
BoJ Kuroda: No plans for further easing
Asian stocks swing higher on strong Wall Street close, China leads the show
Dominating themes in Asia - centered on JPY, AUD, NZD
The US dollar edged lower against its major peers in Asia, reversing a part of its previous rally, as unwinding of USD longs was evidenced ahead of the key US GDP data due later today. While the greenback remained unperturbed by the prevalent risk-sentiment boosted by rebounding Asian equities.
USD strength dominated across the FX board on Wednesday as risk sentiment clawed its way back after several days of volatility and as US economic data was surprisingly upbeat. US durable goods orders surged 2.0% month-on-month in July, coming in much better than the forecast of a 0.4% decline, while core durable goods orders rose 0.6% over the same.
The Antipodeans struggles to extend the recovery as the Aussie was hurt by below estimates Australia’s capex data. Private capex fell 4.0% in the June quarter, according to the Australian Bureau of Statistics (ABS), coming in weaker than the consensus forecast of a 2.5% decline, but improving on the revised 4.7% slump recorded in the March quarter. While its OZ neighbor, the NZD is seen defending gains amid USD weakness and on renewed appetite for risk currency.
The dollar-yen pair is seen struggling around 120 barrier, receding from 120.37 highs reached in early Asia. The Japanese currency was little impacted by BOJ Kuroda’s speech delivered in early Asia. Although the safe-haven allure of yen was hit hard after Asian stocks firmed up today.
The Asian equities swung back higher following upbeat Wall Street close overnight, with the Hong Kong's benchmark Hang Seng index gaining 2.41% at 21588 while mainland China's benchmark Shanghai Composite pared gains and trades +1.55% at 2972. Among other Asian indices, the Japanese benchmark Nikkei 225 advances 1.36% at 18626 on weaker yen. While the benchmark Australian S&P/ASX 200 rebounded, now up 1.28% at 5238. Korea's benchmark Kospi index now trades +0.53% at 1,904 points in Seoul.
Heading into Europe - centered on EUR, GBP
Another calmer European session ahead, with a slew of 2nd-tier macro data to fill in a quiet EUR calendar.
While, ECB executive board member Benoit Coeure will participate in the Conférence des Ambassadeurs organized by Ministère des Affaires étrangères et du Développement international in Paris.
Looking towards the New York session, the main market mover on Thursday remains the US Q2 GDP results due later tonight. Markets expect that the second quarter GDP will rise a solid 3.2% when the first of two rounds of monthly revisions are unveiled by the Department of Commerce. That's a big improvement on the already decent 2.3% growth pace suggested by the initial estimate.
Besides, the weekly jobless claims and pending home sales data will also be closely watched while the key event – Jackson Hole Symposium.
The Economic Symposium, held in Jackson Hole, Wyoming, is attended by central bankers, finance ministers, academics, and financial market participants from around the world.
EUR/USD Technicals
AceTrader Research team noted, “Despite euro's rally to as high as a fresh 7-month peak at 1.1715 on Monday on dollar's broad-based selloff due to the near 600 points fall in Dow Jones Index, subsequent strong retreat suggests a temporary top has been made and consolidation with downside bias would be seen for a stronger retracement towards 1.1250/60, then 1.1214 later this week. However, near term loss of momentum would keep price above 1.1377 and yield a much-needed rebound.”
On the upside, only above 1.1562 would indicate aforesaid pullback has ended and turn outlook bullish for a re-test of said top, break would extend gain towards 1.1750/54.”