10 Jan 2014
Asia Recap: All quiet ahead of Non Farm Payrolls
FXstreet.com (Bali) - Today's take away in Asia was the Chinese trade balance, which despite coming lower-than-expected, saw imports surge to double expectations, a surprise helping boost the Aussie towards 0.89 handle.
Earlier on the session, new home sales in Australia showed he fastest monthly growth rate in 4 yr, despite as one would expect, another counter-intuitive move occurred, as the Aussie ignored data to instead find a reason to test session lows at 0.8880 before getting back up.
The Japanese Yen traded heavy right from the first ticks in Tokyo, allowing USD/JPY to make a comeback towards 105.00 magnet level. As per the Euro, further marginal short covering was noted vs the US Dollar, extending the rebound off 2014 low post ECB, with EUR/JPY buying underpinning price. The Pound saw a tight range, Kiwi traded a bit heavy, while the Canadian Dollar still sees no end to its misery ahead of today's Canadian jobs data.
Going forward, the Non Farm Payroll in the US is the focus, a risk event in which the market seems to be positioned for a strong number given the optimistic +196k estimate from a Reuters poll. While a lottery, it is worth noting that the number hints at risk slightly skewed for disappointment, as market is likely going to be looking to play overweight USD bets.
Earlier on the session, new home sales in Australia showed he fastest monthly growth rate in 4 yr, despite as one would expect, another counter-intuitive move occurred, as the Aussie ignored data to instead find a reason to test session lows at 0.8880 before getting back up.
The Japanese Yen traded heavy right from the first ticks in Tokyo, allowing USD/JPY to make a comeback towards 105.00 magnet level. As per the Euro, further marginal short covering was noted vs the US Dollar, extending the rebound off 2014 low post ECB, with EUR/JPY buying underpinning price. The Pound saw a tight range, Kiwi traded a bit heavy, while the Canadian Dollar still sees no end to its misery ahead of today's Canadian jobs data.
Going forward, the Non Farm Payroll in the US is the focus, a risk event in which the market seems to be positioned for a strong number given the optimistic +196k estimate from a Reuters poll. While a lottery, it is worth noting that the number hints at risk slightly skewed for disappointment, as market is likely going to be looking to play overweight USD bets.