Talking Points:
- Aussie, NZ Dollars rise alongside S&P 500 futures in Asian trade
- US Housing Starts, Building permits top otherwise quiet calendar
- Consolidative tone likely to persist ahead of FOMC rate decision
The Australian and New Zealand Dollars narrowly outperformed in otherwise quiet overnight trade. The sentiment-linked currencies edged higher alongside S&P 500 futures, hinting at cautiously improving risk appetite as the catalyst behind the move. The Kiwi narrowly led the way higher, perhaps reflecting the currency’s yield advantage relative to its Aussie counterpart.
A quiet economic calendar in European trading hours is likely to translate into restrained volatility going forward. US Housing Starts and Building Permits figures may generate a bit of activity, but lasting follow-through seems unlikely as traders wait for the FOMC monetary policy announcement to cross the wires before committing to a firm directional bias.
Losing money trading in the FX market? This might be why.
Asia Session
| GMT | CCY | EVENT | ACT | EXP | PREV |
|---|---|---|---|---|---|
| 23:30 | AUD | Weekly Consumer Confidence Index (SEP 18) | 115.5 | - | 118.1 |
| 01:30 | AUD | RBA Sept. Meeting Minutes | - | - | - |
| 01:30 | AUD | House Price Index (QoQ) (2Q) | 2.0% | 2.8% | -0.2% |
| 01:30 | AUD | House Price Index (YoY) (2Q) | 4.1% | 5.1% | 6.8% |
European Session
| GMT | CCY | EVENT | EXP | PREV | IMPACT |
|---|---|---|---|---|---|
| 05:45 | CHF | SECO September 2016 Economic Forecasts | - | - | Medium |
| 06:00 | CHF | Trade Balance (AUG) | - | 2.81b | Low |
| 06:00 | CHF | Exports Real (MoM) (AUG) | - | 5.5% | Low |
| 06:00 | CHF | Imports Real (MoM) (AUG) | - | 9.2% | Low |
| 06:00 | EUR | German PPI (MoM) (AUG) | 0.0% | 0.2% | Low |
| 06:00 | EUR | German PPI (YoY) (AUG) | -1.6% | -2.0% | Low |
| 07:00 | JPY | Convenience Store Sales (YoY) (AUG) | - | 0.3% | Low |
| 09:40 | GBP | BOE ILTR Operation Results | - | - | Medium |
| 13:10 | GBP | BOE Exec Director Hauser Speaks in London | - | - | Low |
| 13:50 | GBP | BOE Bond-Buying Operation Results | - | - | Medium |
Critical Levels
| CCY | Supp 3 | Supp 2 | Supp 1 | Pivot Point | Res 1 | Res 2 | Res 3 |
|---|---|---|---|---|---|---|---|
| EUR/USD | 1.1076 | 1.1125 | 1.115 | 1.1174 | 1.1199 | 1.1223 | 1.1272 |
| GBP/USD | 1.2849 | 1.2944 | 1.2987 | 1.3039 | 1.3082 | 1.3134 | 1.3229 |
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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