ForexLive Asia-Pacific FX news wrap: AUD gets a double-dose of good news

Author: Adam Button | Category: News

Forex news for Asia-Pacific trading on December 5, 2017:

Markets:

  • Nikkei -0.28% to 22,644
  • Gold down $1 to $1275
  • AUD leads, JPY lags

It was all about the Australian dollar as it climbed a half-cent to the best levels since November 12. The initial climb came on an upbeat October retail sales report. There were some caveats (food was a main driver) but it gave AUD traders a reason to lean towards a hawkish RBA.

With the decision from Lowe, there wasn't a screaming 'buy' signal but it was more upbeat on jobs and omitted a reference to low inflation for some time. That was enough to keep the momentum going higher and UAD/USD is near the session high of 0.7653.

The New Zealand dollar piggybacked on the move in a climbed up to 0.6900 from 0.6850. So far, Friday's high of 0.6911 is capping the rise. That will be the level to watch over the next few hours.

Elsewhere, USD/JPY has held its ground after a disappointing slide in US trading. The pair is trading up 10 points on the session at 112.52.

EUR/USD has flattened out near 1.1870 and cable is similar at 1.3475 as disappointment about today's Brexit development is tempered by the belief that it's a temporary setback in an uptrend.

USD/CAD has sat right above yesterday's European low of 1.2655 for the entirety of Asia-Pacific trading.

Looking ahead, there's a full slate of Eurozone PMIs. I'll be back for the North American session.