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FOREX: Post-Election Moderation Continues, AUD Suffers on China Package

FOREX
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  • JPY gains are outstripping all others in G10 as the post-election normalization continues. USD/JPY has slipped back below the Y152.50 level to further narrow the gap with pre-election levels - and weakness through 151.30 would provide a full reversal.
  • AUD is the poorest performer in G10 as China stimulus news came in below market expectations, with no firm signals of fresh consumption support as part of the broader fiscal package. The falter at highs for AUD/USD firms the 100-dma as key resistance ahead - crossing today at 0.6692.
  • Daily low prints of 0.8306 and 0.8309 in the last two sessions continue to highlight the ongoing and building significance of the medium-term inflection point for EURGBP. The post UK budget pressure on sterling proved short-lived last week and EURGBP’s spike to 0.8448 has steadily reversed.
  • Key short-term support and the bear trigger remains at 0.8295, the Oct 18 low. Moving average studies are in a bear-mode position, highlighting a dominant downtrend and a break below this level would confirm a resumption of the current downtrend.
  • The Canadian jobs data for October takes focus going forward, with markets expecting a tick higher in the unemployment rate to 6.6%, while US focus rests on the prelim UMich survey - although the respondents will likely be reflecting pre-election sentiment in their answers given the survey closed on November 4th. Central bank speakers today include BoE's Pill and Fed's Bowman.
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  • JPY gains are outstripping all others in G10 as the post-election normalization continues. USD/JPY has slipped back below the Y152.50 level to further narrow the gap with pre-election levels - and weakness through 151.30 would provide a full reversal.
  • AUD is the poorest performer in G10 as China stimulus news came in below market expectations, with no firm signals of fresh consumption support as part of the broader fiscal package. The falter at highs for AUD/USD firms the 100-dma as key resistance ahead - crossing today at 0.6692.
  • Daily low prints of 0.8306 and 0.8309 in the last two sessions continue to highlight the ongoing and building significance of the medium-term inflection point for EURGBP. The post UK budget pressure on sterling proved short-lived last week and EURGBP’s spike to 0.8448 has steadily reversed.
  • Key short-term support and the bear trigger remains at 0.8295, the Oct 18 low. Moving average studies are in a bear-mode position, highlighting a dominant downtrend and a break below this level would confirm a resumption of the current downtrend.
  • The Canadian jobs data for October takes focus going forward, with markets expecting a tick higher in the unemployment rate to 6.6%, while US focus rests on the prelim UMich survey - although the respondents will likely be reflecting pre-election sentiment in their answers given the survey closed on November 4th. Central bank speakers today include BoE's Pill and Fed's Bowman.