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Aussie Dollar Gains, Yen Drops as Market Sentiment Recovers
DailyFX.com -
Talking Points:
Commodity Dollars rise, Yen falls as risk appetite rebounds in Asia
Quiet economic calendar hints sentiment trends likely to stay in focus
S&P 500 futures point upward, hinting risk-on mood set to continue
A recovery in risk appetite defined FX market price action at the start of the trading week. The sentiment linked Australian, Canadian and New Zealand Dollars outperforming alongside a rally on Asian stock exchanges while the anti-risk Japanese Yen is on the defensive.
Investors’ chipper mood appears corrective after the release of January’s US employment data fueled risk aversion on Friday. While payrolls numbers trailed forecasts, the unemployment rate unexpectedly declined and wage growth impressed on the upside.
This appeared to rekindle Fed rate hike speculation (as we suspected might happen ahead of the release). The US Dollar moved broadly higher against its major counterparts alongside a rally in front-end US bond yields. Meanwhile, the stocks declined to reflect returning fears of on-coming tightening.
Looking ahead, a quiet economic calendar is likely to see sentiment remains remain at the forefront. S&P 500 futures are pointing higher, suggesting the recovery in risk appetite is likely to continue for now absent the emergence of unexpected news-flow.
How will the US Dollar fare against the major currencies this year? Check out our 2016 forecast!
Asia Session
GMT | CCY | EVENT | ACT | EXP | PREV |
01:18 | CNH | Foreign Reserves ($) (JAN) | 3230.9B | 3210.0B | 3330.0B |
23:50 | JPY | BoP Current Account Balance (¥) (DEC) | 960.7B | 1051.7B | 1143.5B |
23:50 | JPY | BoP Current Account Adjusted (¥) (DEC) | 1635.4B | 1590.0B | 1423.5B |
23:50 | JPY | Trade Balance BoP Basis (¥) (DEC) | 188.7B | 305.3B | -271.5B |
23:50 | JPY | Bank Lending Incl Trusts (YoY) (JAN) | 2.3% | - | 2.2% |
23:50 | JPY | Bank Lending Ex-Trusts (YoY) (JAN) | 2.4% | 2.2% | 2.2% |
00:00 | JPY | Labor Cash Earnings (YoY) (DEC) | 0.1% | 0.7% | 0.0% |
00:00 | JPY | Real Cash Earnings (YoY) (DEC) | -0.1% | - | -0.4% |
00:30 | AUD | ANZ Job Advertisements (MoM) (JAN) | 1.0% | - | -0.1% |
04:30 | JPY | Bankruptcies (YoY) (JAN) | -6.38% | - | 1.89% |
05:00 | JPY | Eco Watchers Survey Current (JAN) | 46.6 | 48.4 | 48.7 |
05:00 | JPY | Eco Watchers Survey Outlook (JAN) | 49.5 | 48.4 | 48.2 |
European Session
GMT | CCY | EVENT | EXP | PREV | IMPACT |
08:00 | CHF | Total Sight Deposits (FEB 5) | - | 472.7B | Low |
08:00 | CHF | Domestic Sight Deposits (FEB 5) | - | 407.3B | Low |
09:30 | EUR | Eurozone Sentix Investor Confidence (FEB) | 7.4 | 9.6 | Low |
11:00 | EUR | ECB's Walter Speak in Amsterdam | - | - | Medium |
Critical Levels
CCY | Supp 3 | Supp 2 | Supp 1 | Pivot Point | Res 1 | Res 2 | Res 3 |
EUR/USD | 1.0897 | 1.1034 | 1.1097 | 1.1171 | 1.1234 | 1.1308 | 1.1445 |
GBP/USD | 1.4236 | 1.4376 | 1.4439 | 1.4516 | 1.4579 | 1.4656 | 1.4796 |
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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