Forexlive Asia FX news wrap: US/China call news can't ignite

Author: Greg Michalowski | Category: News

Forex news for Asian trading on November 26, 2019.

In other markets:

  • Spot gold is unchanged at $1455.33
  • WTI crude oil is down -$0.03 or -0.05% at $57.98
There was much ado about nothing in the first 8 or so hours of trading in the new day.  

From a news perspective, just before the close, the New Zealand retail sales data did surprise o the upside for the 3Q with a 1.6% gain vs 0.5% estimate, and that surprise did help to give the NZDUSD a boost into the close/open of the new trading day (at 5 PM ET).  However, the pair did have some trouble extending much above its 100 day MA at 0.6420. The high for the day reached 0.65349. The pair did retrace all the way down to the 200 hour MA at 0.64052, however, before moving back to the upside.  

Forex news for Asian trading on November 26, 2019.
The better retail sales data did help the NZD go to the top of the strongest to weakest table for the major currencies (see rankings and % changes above). The CAD was the weakest. However, before getting too excited about those rankings, understand that the winners and loser are packed close together.  In fact, the biggest mover - the NZDCAD - only moved 0.15%. That is not a lot of price actoin (see ranking above).  

Apart from that, Japan PPI services index came in higher than expectations at 2.1% vs 1.6% the news had limited impact.  

RBAs Debelle said that wage growth is now in a 2-3% range vs 3-4% range and that is likely to keep overall inflation below 2%. That did not help the AUDUSD but with the inactivity in the market, it did not hurt it much either.  

Fed's Powell could not goose the market either after reiterating that the current monetary policy was likely to remain appropriate.  In other words, there was much of the same commentary coming from the Fed chair.  

What did give the USDJPY a boost was a headline from Xinhua that China and US had reached trade concensus on solving trade issues.  That sent JPY pairs moving higher. Pairs like the GBPJPY move up about 40 pips on the day. The USDJPY rose about 28 pips to 109.20 (from 108.89). Other JPY pair also spiked higher. However as I type, those gains were retraced to the downside and each are trading within 6 pips of the closing level for the day.  The news could not ignite a break and run in the major pairs.  

The charts below show the spiky action in the JPY pairs and also the relative little movement from the previous day's close. Of the major USD pairs and cross currency pairs, only 3 are trading more than 10 pips from the closing level from yesterday - that despite the spikes to the upside in the JPY crosses.   Apart from the three, the rest are + or - 8 pips from unchanged.  That is not a lot of action. 

The ranges and changes.
The good news is the London and European market has a lot of room to roam - if it choosed to....

We will see, but for the start of the day, there was not alot of price action to get excited about. In fact, it was pretty boring. 

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