Forex news for Asia trading Wednesday 30 October 2019

The UK will hold a general election on Thursday, December 12 amidst the swirl of Brexit. UK PM Johnson secured enough votes Tuesday evening UK time. Whether it resolves anything on Brexit remains to be seen, but there is a chance it'll break the deadlock so at least its a step forward. Or not.

We'll see. GBP is very little changed for the session here in Asia.

EUR/USD, too, is very little changed and you can pop USD/CAD and USD/CHF in to that description also.

We had inflation data from Australia today which prompted some AUD movement. Going into the data release the Australian dollar was a little weaker, hitting its session low circa 0.6850 just prior to the data hitting. The data came in pretty much as expected, and really has not added much to our knowledge of the economy - inflation remains rolling along beneath target. Given RBA Governor Lowe's comments on Tuesday the data today was probably not low enough to prompt an imminent rate cut (the RBA meet Tuesday November 5) nor high enough to entertain thoughts of some sort extended pause in cuts from the Bank. The December meeting remains 'live' (there is no January meeting, as a reminder if you need it). The Australian dollar traded to its session high in the aftermath of the CPI release, just above 0.6870 and has since subsided back to be sitting just under mid-range as I update. NZD/USD traded a broadly similar pattern to AUD.

We also had data from Japan today, retail sales in September surged to beat of expectations. The October 1 sales tax hike prompted 'front-loading' of buying in September. The big beat today does not auger well for October figures, and perhaps beyond. The Bank of Japan meet and today's data will add in an extra consideration, even if only at the margin. Majority opinion remains it'll be an 'on hold' BOJ decision. USD/JPY can be another addition to the 'barely changed' bin today.

Still to come:

And - central bank's in the US and Canada, then Japan.

 Forex news for Asia trading Wednesday 30 October 2019