ASIA-PAC MID-SESSION UPDATE: Risk Off Aplenty as The AUD Takes A Hit On The Back Of Soft Wage Data

The AUD took a hit on the back of disappointing domestic wage data, which should not lead to any pressure on the RBA in terms of budging from its on hold stance in the short term. In lieu of the data the AUDUSD pair fell around 50 pips and has settled around 0.7580. The Japanese economy recorded a 7th straight quarter of growth, driven by foreign demand, although it was the broader risk off tone which drove JPY demand, with USDJPY moving towards 113.00. GBP ticked lower, while the NZD drew some support from the selloff in the AUD via the AUDNZD cross.

Regional stocks were lower, following the lead of their US counterparts, as negative risk sentiment and the stronger domestic currency weighed on Japan’s Nikkei 225 which finished the morning session 0.9% lower. In Australia, the ASX 200 fell, with energy stocks and resource names leading the way on the back of softer oil prices and yesterday’s Chinese data respectively. Chinese and Hong Kong markets also fell afoul of risk off sentiment, with the tumble in Shanghai metals heaping further weight on risk assets.

Bonds edged higher in the US, Japan & Australia, with Australian 3-year bond futures experiencing notable buy side flow in the wake of the soft wage data.

In the commodities space oil hasn’t made any notable effort to bounce from its API headline build-inspired sell off, while gold has tip-toed higher and Shanghai industrial metals have fallen heavily on the back of yesterday’s soft activity data and the risk off flows seen elsewhere.

15 Nov 2017 - 02:30- EnergyData- Source: RANsquawk

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