Mid Day Update

Mid Day Update

Australian Dollar

A bit of a whipsaw over the Aussie GDP data which came in close to expectation, but the delta was well within consensus to support the Aussie. However, the economic data processing algorithms triggered on weak 0.1% increase in household consumption expenditure sending the Aussie toppling This sorry data print was the lowest result since the GFC. While the market has stabilised above the fundamentally key  .7575 level, it was an unexpectedly weak reading, and the Aussie may see some downside follow-through when London enters the fray
The Japanese Yen

The Tax Reform euphoria, well what little there was for the dollar, is fading. And while our flow remains tentatively bid via Tokyo margin accounts on a mean reversion trade, there’s very little positive USD energy this morning which may open up a test of 112 in London.
Asia FX

Another low liquidity day, as various idiosyncratic storylines play out.

The USDKRW continues to trade bid on wall street losses in the absence of any local market drivers.

The USDMYR remains positively stable but very little speculative or exporter flow in play today.

The USDINR is opening flat ahead of the RBI rate decision where its widely expected the CB will remain unchanged.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

Latest posts by Stephen Innes (see all)