The risk-on sentiment dominated the Asian trades this Tuesday on the back of the US President Trump’s optimism on the US-China trade deal. The Asian markets cheered improved risk appetite while the US dollar stalled its upside and consolidated the recent gains versus its main peers. The Aussie benefited the most from an unexpected uptick in the National Australia Bank’s (NAB) survey readings and trade deal hopes, having made a few attempts to test the 0.71 barrier. The Kiwi also followed suit and hit three-week lows at 0.6740 while the USD/JPY pair surpassed the 110.50 level to hit fresh seven-week tops at 110.66. Further upside in the US equity futures and Treasury yields aided the fresh leg up in the spot. Meanwhile, both the Euro and the GBP traded better bid, looking to stabilize ahead of the key central bankers’ speeches.
On the commodities’ front, both crude benchmarks traded with moderate gains amid US-China trade while gold prices on Comex traded modestly flat above 1310 levels.
Main Topics in Asia
Aussie pops on the back of NAB's business confidence and conditions surprising to the upside
BOJ trims long-term JGB purchases for the first time since July 2018
US Senator Shelby: Agreement in principle reached in US shutdown talks
RBNZ 2-year inflation expectations for Q1 at 2.02% vs. 2.03% prior
Gold Technical Analysis: Failed breakout has established $1315 as key resistance
Trump says “We are going to make great deals on trade”, Aussie jumps to 0.7090
Trump: `We probably have some good news' over border deal
China’s CommerceMin: China will take more measures to boost consumption
Asian stocks rise on US-China trade optimism
UK PM Theresa May calls on former EU Chief to help break Brexit deadlock – Sky News
USD/INR Technical Analysis: Bearish bias intact
Key Focus Ahead
We have a data-light calendar today, with absolutely no release from the Euroland as well as from the UK docket. Meanwhile, the NA calendar sees the US JOLTS job openings data for the month of December while the API will publish its weekly crude stocks data at 2130 GMT. Hence, markets remain focused on a slew of speeches due to be delivered by the major central bankers (CB) amidst Brexit-related developments and the US-China trade headlines.
Also, in focus remains the Reserve Bank of New Zealand (RBNZ) rate decision and Governor Orr’s presser that is scheduled in Wednesday’s early Asian session.
The key CB speeches lined up for today are here under:
0800 GMT: ECB Vice-President Weidmann
0900 GMT: ECB Nowotny
1300 GMT: BOE Governor Carney
1745 GMT: Fed Chair Powell
EUR/USD: Investors continue to add bets to position for drop in EUR
Risk reversals on the EUR, a gauge of calls to puts on the common currency, fell to its lowest level since the end of November, indicating investors are adding bets to position for further weakness in the EUR.
GBP/USD: Carney's speech awaited after UK GDP miss
BoE’s Carney is scheduled to deliver a speech relating to “the latest developments in the global economy and risks to the outlook” in London around 13:00 GMT today.
EUR/GBP: Where it can go in these 5 Brexit scenarios
Time is running out to reach a deal on Brexit, with fewer than 50 days left to go. UK PM Theresa May is trying to find a deal that may pass muster in the House of Commons, be acceptable to the European Union, and not break up her party.
RBNZ Preview: Dovish shift priced in, NZD/USD to rise?
The Reserve Bank of New announces its first rate decision for 2019 on Wednesday, February 13th, at 1:00 GMT. Governor Adrian Orr will meet the press at 2:00 GMT.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats toward 1.0850 despite weak US employment data
EUR/USD loses its traction and declines toward 1.0850 after testing 1.0900 earlier in the session. Because Nonfarm Payrolls data for October missed the market expectation by a wide margin due to hurricanes and strikes, the US Dollar manages to hold its ground.
GBP/USD climbs above 1.2950, looks to end week little changed
GBP/USD benefits from the improving risk mood and trades in positive territory above 1.2950 in the American session on Friday as markets ignore the weak labor market data from the US. The pair remains on track to end the week flat.
Gold clings to small gains near $2,750 after US data
Gold clings to marginal recovery gains and trades slightly above $2,750. The 10-year US Treasury bond yield struggles to push higher after the dismal October jobs report and weaker-than-expected PMI data from the US, helping XAU/USD keep it footing.
Bitcoin Weekly Forecast: Run toward fresh all-time high hinges on US presidential election results
Bitcoin could experience a price pullback in the next few days ahead of the US presidential election, analysts say, an event that will be key to determining whether and how the crypto class will be regulated in the years to come.
Bank of Japan holds rates steady amid signs of modest GDP growth
Monthly industrial production results have been mixed but generally indicate a modest recovery in third-quarter GDP. Clear guidance from the Bank of Japan remains elusive, with each upcoming meeting being pivotal.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.