Forex headlines for Asia-Pacific trading on Oct 20, 2015:

  • Canadian Liberals win majority in election
  • Justin Trudeau to be new Prime Minister
  • Canada's Stephen Harper to resign as party leader
  • RBA Minutes: Economic, financial conditions will inform policy stance
  • Carney will reveal BOE's position on Brexit Wednesday
  • Hilsenrath: Debt ceiling debate another reason Fed will wait
  • IBM cuts forecast after earnings miss
  • US Treasury softens yuan rhetoric
  • Gold down $2 to $1168
  • Shanghai Composite down 0.1% to 3383
  • WTI crude oil up 19-cents to $46.08
  • AUD leads, CAD lags

Market moves have been relatively modest in Asia-Pacific trading as the US dollar bounce runs out of gas. The euro made a modest move higher but stalled ahead of 1.1340 after a 10 pip climb. It didn't get any traction from there and slipped back to 1.1335.

USD/JPY was in a tight range from 119.43 to 119.56. It's been a couple days of narrowing trade and I don't suspect it will last long.

Cable showed some fresh life after a late retracement in NY trading as it rose to 1.5478 from 1.5460.

USD/CAD was in the spotlight due to the election. Trudeau pulled off a surprise majority. As the TV networks predicted he would win the vote the pair rose 20 pips to 1.3047 despite a rise in oil prices.

The Australian dollar was the other focus. The RBA had a chance to put a rate cut on the table in the Minutes but they were upbeat on the domestic economy and not overly concerned about China. AUD/USD initially jumped 25 pips but many pointed out that the Westpac rate hike was a gamechanger and keeps a November cut on the table.