TALKING POINTS – AUSTRALIAN DOLLAR, YEN, ITALY, FRANCE, S&P 500
- Yen up, Aussie Greenback down as RBA outlook lower stokes world slowdown fears
- Kiwi Greenback finds a lifeline in corrective flows following yesterday’s collapse
- Italian, French industrial manufacturing knowledge may amplify risk-off market temper
The Australian Dollar tumbled because the RBA slashed economic growth and inflation forecasts, sapping what little was left of rate of interest hike prospects. The prevailing risk-off temper compounded promoting stress as Asia Pacific bourses picked up on a negative lead from Wall Street.
The Canadian Dollar likewise fell with regional shares however the New Zealand Dollar managed to carry up, buoyed by corrective flows following yesterday’s outsized plunge within the wake of disappointing employment data. The perennially anti-risk Japanese Yen loved a well-recognized increase.
ITALIAN, FRENCH DATA MAY AMPLIFY RISK AVERSION
Bellwether S&P 500 futures are pointing ominously decrease, hinting extra of the identical is probably going as European and American markets be a part of the fray. Disappointing outcomes on incoming industrial manufacturing knowledge from Italy and France may compound the downbeat temper. The Euro can also endure.
Financial news-flow out of the Eurozone has steadily deteriorated relative to consensus forecasts since September. Extra of the identical may stoke worries in regards to the incapacity of the second- and third-largest economies within the forex bloc to satisfy EU funds deficit targets.
Brussels insisted on fiscal restraint in Rome final yr, pushing the M5S/Lega coalition to curb its urge for food for expansionary coverage. Prospects of an identical face-off with Paris – seen as one thing of a pro-EU beacon amid the latest eurosceptic ascendancy – may reboot political instability issues.
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ASIA PACIFIC TRADING SESSION
EUROPEAN TRADING SESSION
** All instances listed in GMT. See the full economic calendar here.
FX TRADING RESOURCES
— Written by Ilya Spivak, Forex Strategist for DailyFX.com
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