Asian Session Recap

Headlines:

• Goldman Sachs – At 85 cents the RBA views the Australian dollar as still overvalued
• New Zealand Finance minister English: Forecast of 2.75% GDP growth in 2016 is `optimistic’

Data:

• Q3 GDP from Australia: +0.3% q/q (vs. expected +0.7%)
• China Services PMI for November: 53.9 (prior was 53.8)
• New Zealand Q3 Construction work +1.5% q/q (vs. +2.6% expected)
• JAPAN Markit services PMI for November: 50.6 (prior 48.7)
• China HSBC services PMI: 53.0 (prior 52.9)

Recap:

USD maintained most of its overnight gains in the Asian session especially against the Aussie after poor Q3 GDP data sent the currency lower. Equity markets were mixed as was the commodity space.

The Aus200 took some liking to the cavalcade of rate cut expectations now beginning to grow after the release of the Q3 GDP data we trade at 5335, up 10. Elsewhere the Nikkei trades lower by 45 at 17720.

Commodities trade mixed in quiet trade with Gold at 1200.72, +3.10 and Silver at 16.37, -7 cents. WTI Crude is down 38 cents at 67.34.

Apart from the losses in the Aussie, other currencies are barely changed from the open. UsdJpy sits at 119.14, down 4 points after an early attempt at 119.50 failed. EurUsd sits at 1.2380 down 6, Cable at 1.5645 flat and UsdChf unchanged at 0.9721.

The Aussie dropped the better part of 50 points on the announcement and has been as low as 0.8388 thus far 3 points shy of both hourly and weekly target levels at 0.8385. Daily channel support and the 4ATR band sits below at 0.8317. Kiwi also weaker on the day by 18 points at 0.7782.

Coming Up Tonight:

With the ECB out tommorrow as the main European event, tonight sees the release of Swiss GDP, European Services PMI, GBP Services PMI in that order. Later in the US session we have ADP Employment, Services PMI, ISM data and finally the Beige Book, The Canadians have the BoC rate decision with Governor Poloz speaking in the Asian morning.