OANDA Trading Asia market update : HSI,OIL ,XAU,JPY,EUR,CAD,GBP

Hong Kong

HSI is trading with a negative bias playing catch up from yesterday holiday in reaction to the weaker China PMI data. But at least for today, it’s more than apparent HK investors are in no mood to join the revamped NAFTA festivities.

Oil

Oil markets are holding onto the astonishing overnight gains ahead tomorrows API inventory data. But, oil traders are biding time and waiting for another cause and effect to buy more barrels.

Gold

Gold has been nudging higher as risk has been trading a bit unsettled in Asia as expressed by the HSI mini melt, and Italian EU risk. The  USD is consolidating recent gains vs the Yen but looking to bully the EURO lower on early London flow.

G-10 currencies

Japanese Yen 

While the USDJPY is following the more hawkish FOMC playbook, but the lack of follow-through above 114.00 suggesting positions are getting a bit crowded  and  USD bulls are  in need of some absolute “risk on” to breakout topside

The Euro.

The EURUSD is getting squashed by a toxic combination of higher US interest rates and Italy risk, look  for more downside momentum on this trade

The Canadian Dollar

The USDCAD is merely biding time, but eventually, 1.2800 give way. Perhaps Asia  CAD traders are waiting for Bay Street to run with the baton given RM chatter around 1.2800. Short EURCAD continues to be the favourable  expression on a bullish CAD view

The Pound

The Pound, on the other hand, should continue trading like an old beach roller coaster, getting moved by the latest BREXIT iteration

RBA
In the battle for the most dovish G-10 central banker award, as expected the RBA held rates in check. With nothing explicitly standing out in the statement, I think the Aussie trade is on hold till Fridays NFP

OANDA Trading Podcast: MONEYFM 89.3 OIL markets and China risk

OANDA Commodities Weekly: Short gold positions increase as prices drop 

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