Forex news for Asia trading on October 25, 2017
- The bank of Canada to focus later. The usd / cad remains above the 100-day MA
- US 10 year yield to a key, key level
- Japan to consider extending the tax incentives for companies to increase wages
- Nikkei 225 for the 17th day, but the gains are being eroded
- People’s bank of China sets yuan reference rate at 6.6322 (vs yesterday to 6.6268)
- NZ PM designated Ardern named Grant Robertson, minister of finance
- Have a trade idea? Enter here and share the wealth.
- Apparently, stocks of crude oil increased 0.519 MM barrels. Gasoline inventories have plunged.
- As the NA session moves to the closing, the euro is the most strong, the NZD is the weakest.
- The Canada of the End. Minister Morneau: Canada’s budget deficit is lower
- US stocks end the session with gains, but high
- ForexLive Americas FX news wrap: Trump takes a beating
In other markets, of a watch:
- Spot gold down$3.88, or -0.30 percent to $1273.04
- The Nikkei 225 is trading up 13 points at 21818. Positive close will be the 17th consecutive senior day (see the post here). The Hang Seng index is 205.62 points or +0.73%.
The share price has been pretty pathetic in the Asian session, with the exception of the pair with AUD attached to their name. The Q3 CPI data has been released, and it came out lower than expected at 0.6% q / q for headline and +0.4% vs. 0.5% for the coupe. In addition, the year-on-year data was also lower at 1.8% for the three steps (title, trimmed and weighted median). The target for the RBA’s 2% -3%. Stay below will most likely keep the RBA. The pair AUD reacted accordingly.
The AUDUSD is trading towards the bottom -56 pips (see the charts above). The range is 66 pips from the bottom to the top.
By point of comparison,
- the next most important trading range comes at 23 pips for USDJPY. It is up 4 points from the NY close.
- The GBPUSD has a range of 19 points. It is up 1 pip.
- The EURUSD has a low to high trading range of 17 pips and is down -4 pips on the day.
This is not a lot of meat on the os market to say the least (it must be because Eamonn took the day off today).
The good new for traders is whether you have jumped quickly on a AUD band wagon, you had the potential to make a little pips as the price continued to the extreme after the weakening of the limited data corrective price action.
For the AUDUSD, the pair has dropped below the 0.7755 level and the 0.77266 levels of support now (the 0.77266 is the 50% of the progression of the May low see the post here). In the europe/London session traders will be focused on the daily 200 MA at 0.7692 level as the next key target. Look for buyers on a dip near that level.
The AUDJPY also fell, and in the process of felll below the 200 hour MA at 88.38, the 50% retracement at 88.156 and has traded above and below the 61.8% of the move up from the October 10 low at 87.94. There is a collection of swing lows that come around the 87.78 area.
The AUDNZD, which is mounted on the back of NZD weakness since the announcement of the coalition government, has even seen some reversal today. It was down -50 pips on the day with a trading range of 81 points.
The Nikkei 225 is looking to close with gains for the 18th trading day in a row. It is currently about 18 percentage points as I type.
Just because the AUD is the one and only star of the day, until now, does not mean that it will be the star that Europe and North America sessions and start to play.
In Europe, the united KINGDOM, the GDP will be published and in the North American session, the u.s. advance durable goods data will be released with new home sales and oil inventory data. In Canada, the BOC is expected to announce his statement at 10 pm ET/1400 GMT (see the technical overview here).
Below the preview of what the % changes look like in the European session starts.
I’m sure Mike will take care of you for the start of the European session. For me, it has been a pleasure to serve you in Eamonn’s absence. I’ll be back in the NY session, so it’s off to bed for me. Good luck with your trading.