Commodity Dollars Rise, Yen Falls as Risk Appetite Firms Overnight
- Commodity Dollars Gains, Japanese Yen Declines as Risk Appetite Firms
- S&P 500 Index Futures Hint Risk-On Sentiment Likely to Carry Forward
- See Economic News Directly on Your Charts with the DailyFX News App
The Australian, Canadian and New Zealand Dollars rallied as risk appetite firmed in overnight trade. The Japanese Yen weakened as the firming sentiment undercut demand for the safety-linked currency.
Asian shares soared in a move the news-wires chalked up to firming confidence in Chinese officials’ ability to stabilize on-shore markets. Data released over the weekend showed Chinese FX reserves fell by US$93.9 billion in August – the most since at least 1996 – to telegraph Beijing’s willingness to commit resources toward pushing back against recent turmoil.
The European calendar is relatively quiet in overnight trade, hinting risk sentiment trends are likely to remain in the driver’s seat for now. S&P 500 stock index futures are pointing firmly higher, suggesting the risk-on mood will probably carry onward and continue to boost high-yielding FX while weighing on funding currencies.
New to FX? START HERE !
|23:01||GBP||BRC Shop Price Index (YoY) (AUG)||-1.4%||-0.2%||-1.4%|
|23:50||JPY||Money Stock M2 (YoY) (AUG)||4.2%||4.1%||4.0%|
|23:50||JPY||Money Stock M3 (YoY) (AUG)||3.4%||3.3%||3.3%|
|00:30||AUD||Westpac Consumer Conf Index (SEP)||93.9||-||99.5|
|00:30||AUD||Westpac Consumer Conf SA (MoM) (SEP)||-5.6%||-||7.8%|
|01:30||AUD||Home Loans (MoM) (JUL)||0.3%||0.8%||4.8%|
|01:30||AUD||Investment Lending (JUL)||0.5%||-||-0.5%|
|01:30||AUD||Owner-Occupier Loan Value (MoM) (JUL)||2.2%||-||6.7%|
|05:00||JPY||Consumer Confidence Index (AUG)||41.7||40.5||40.3|
|06:00||JPY||Machine Tool Orders (YoY) (AUG P)||-16.5%||-||1.7%|
|08:30||GBP||Industrial Production (MoM) (JUL)||0.1%||-0.4%||Medium|
|08:30||GBP||Industrial Production (YoY) (JUL)||1.4%||1.5%||Medium|
|08:30||GBP||Manufacturing Production (MoM) (JUL)||0.2%||0.2%||Medium|
|08:30||GBP||Manufacturing Production (YoY) (JUL)||0.5%||0.5%||Medium|
|08:30||GBP||Visible Trade Balance (£/Mn) (JUL)||-9500||-9184||Low|
|08:30||GBP||Trade Balance Non EU (£/Mn) (JUL)||-1825||-1620||Low|
|08:30||GBP||Trade Balance (£/Mn) (JUL)||-1950||-1601||Low|
|CCY||Supp 3||Supp 2||Supp 1||Pivot Point||Res 1||Res 2||Res 3|
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
To receive Ilya's analysis directly via email, please SIGN UP HERE
Contact and follow Ilya on Twitter: @IlyaSpivak
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.