Talking Points
- Risk Appetite Swells Amid Easing Risk of Western Intervention in Syria
- Aussie Dollar Higher, Japanese Yen Sold on Pickup in Market Sentiment
- S&P 500 Futures Hint Positive Market Mood Likely to Carry Forward
The Australian Dollar outperformed in overnight trade, rising as much as 0.6 percent on average against its leading counterparts. The sentiment-sensitive currency was pulled higher as stocks continued to rise across Asian bourses, with regional shares adding 1.1 percent on average. The Japanese Yen underperformed as the “risk-on” mood drove demand for carry trades funded in terms of the perennially low-yielding currency. The unit fell as much as 0.6 percent on average against the G10 majors.
The positive tone appears to have followed comments from US President Obama, who said in an interview that a Russia-proposed arrangement that would see Syria surrender its chemical weapons could put on hold the push to initiate military intervention against the government of President Bashar al-Assad. Traders have worried that Western intervention might widen the conflict, disrupting oil shipments from the region and undermining the global recovery.
Another supportive set of Chinese economic data underpin investors’ chipper mood. The East Asian giant reported that Industrial Production rose 10.4 percent year-on-year in August, topping median forecasts calling for a 9.9 percent increase and yielding the best reading since March 2012. Retail Sales rose 13.4 percent over the same period, recording the biggest gain since December 2012.
A quiet economic calendar hints sentiment trends are likely to remain in control for the time being. European stock exchanges are following their Asian counterparts upward and S&P 500 futures are pointing firmly higher, suggesting the markets’ rosy disposition is likely to carry forward as Wall Street comes online.
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Asia Session:
|
GMT |
CCY |
EVENT |
ACT |
EXP |
PREV |
|
22:45 |
Card Spending Retail (MoM) (AUG) |
0.8% |
0.6% |
0.5% |
|
|
22:45 |
NZD |
Card Spending Total (MoM) (AUG) |
0.4% |
- |
0.4% |
|
23:01 |
RICS House Price Balance (AUG) |
40% |
39% |
37% |
|
|
23:50 |
JPY |
Bank of Japan August 7-8 Meeting Minutes |
- |
- |
- |
|
23:50 |
JPY |
Japan Money Stock M2 (YoY) (AUG) |
3.7% |
3.8% |
3.7% |
|
23:50 |
JPY |
Japan Money Stock M3 (YoY) (AUG) |
3.0% |
3.0% |
3.0% |
|
23:50 |
JPY |
Tertiary Industry Index (MoM) |
-0.4% |
-0.5% |
-0.5% |
|
1:30 |
AUD |
NAB Business Conditions (AUG) |
-6 |
- |
-7 |
|
1:30 |
AUD |
NAB Business Confidence (AUG) |
6 |
- |
-3 |
|
5:30 |
CNY |
Industrial Production YTD (YoY) (AUG) |
9.5% |
9.4% |
9.4% |
|
5:30 |
CNY |
Industrial Production (YoY) (AUG) |
10.4% |
9.9% |
9.7% |
|
5:30 |
CNY |
Fixed Assets Ex Rural YTD (YoY) (AUG) |
20.3% |
20.2% |
20.1% |
|
5:30 |
CNY |
Retail Sales YTD (YoY) (AUG) |
12.8% |
12.9% |
12.8% |
|
5:30 |
CNY |
Retail Sales (YoY) (AUG) |
13.4% |
13.3% |
13.2% |
|
6:00 |
JPY |
Machine Tool Orders (YoY) (AUG P) |
-1.8% |
- |
-12.2% |
Euro Session:
|
GMT |
CCY |
EVENT |
EXP/ACT |
PREV |
IMPACT |
|
6:45 |
EUR |
French Industrial Production (MoM) (JUL) |
-0.6% (A) |
-1.4% |
Low |
|
6:45 |
EUR |
French Industrial Production (YoY) (JUL) |
-1.8% (A) |
-0.1% |
Low |
|
6:45 |
EUR |
French Manufacturing Production (MoM) (JUL) |
-0.7% (A) |
-0.4% |
Low |
|
6:45 |
EUR |
French Manufacturing Production (YoY) (JUL) |
-2.5% (A) |
-0.4% |
Low |
|
8:00 |
CNY |
New Yuan Loans (AUG) |
711.3B (A) |
699.9B |
Medium |
|
8:00 |
CNY |
Aggregate Financing RMB (AUG) |
1570.0B (A) |
808.8B |
Medium |
|
8:00 |
CNY |
Money Supply M2 (AUG) |
14.7% (A) |
14.5% |
Medium |
|
8:00 |
EUR |
Italian GDP s.a. and w.d.a. (QoQ) (2Q F) |
-0.3% (A) |
-0.2% |
Medium |
|
8:00 |
EUR |
Italian GDP s.a. and w.d.a. (YoY) (2Q F) |
-2.1% (A) |
-2.0% |
Medium |
Critical Levels:
|
CCY |
SUPP 3 |
SUPP 2 |
SUPP 1 |
Pivot Point |
RES 1 |
RES 2 |
RES 3 |
|
1.2990 |
1.3111 |
1.3183 |
1.3232 |
1.3304 |
1.3353 |
1.3474 |
|
|
1.5427 |
1.5553 |
1.5625 |
1.5679 |
1.5751 |
1.5805 |
1.5931 |
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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