Aussie and NZ Dollars Rise, Yen Drops as China Expands Stimulus

(MENAFN- DailyFX) DailyFX.com - r>

" style="text-align:justify"> Talking Points:

Aussie and Kiwi Dollars Rise Yen Drops as China Expands Stimulus Effort
Euro Unlikely to Find a Lasting Catalyst in German IFO Survey Outcome
See Economic Releases Directly on Your Charts with the DailyFX News App

The Australian and New Zealand Dollars outperformed in overnight trade after China expanded monetary stimulus efforts cutting its one-year lending rate by 40 basis points to 5.6 percent. The East Asian giant is Australia and New Zealand’s largest export market so a more aggressive pro-growth effort there bodes well for the two Oceanic countries’ cross-border sales prospects which is in turn supportive for overall growth and monetary policy bets.

The Japanese Yen proved weakest on the session as China’s move lifted spirits across Asian stock exchanges denting demand for the safety-linked currency. The MSCI Asia Pacific regional benchmark stock index (excluding Japan where markets are closed for a holiday) jumped 1.2 percent. The Yen lost as much as 0.5 percent on average against its leading counterparts.

Germany’s IFO Survey of business confidence headlines the economic calendar in European trading hours. The headline Business Climate gauge is expected to edge down to 103.0 in November marking the weakest reading since December 2012. The outcome’s impact on the Euro may prove lackluster however given its limited implications for the near-term trajectory of ECB policy. Indeed the central bank is probably in wait-and-see mode for now as Mario Draghi and company continue to implement and evaluate the medley of stimulus measures introduced over recent months.

New to FX START HERE!

Asia Session

" style="text-align:center"> GMT	" style="text-align:center"> CCY	" style="text-align:center"> EVENT	" style="text-align:center"> ACT	" style="text-align:center"> EXP	" style="text-align:center"> PREV
" style="text-align:center"> 21:45	" style="text-align:center"> NZD	Net Migration (OCT)	" style="text-align:center"> 5250	" style="text-align:center"> -	" style="text-align:center"> 4670

European Session

" style="text-align:center"> GMT	" style="text-align:center"> CCY	" style="text-align:center"> EVENT	" style="text-align:center"> EXP	" style="text-align:center"> PREV	" style="text-align:center"> IMPACT
" style="text-align:center"> 9:00	" style="text-align:center"> EUR	German IFO – Expectations (NOV)	" style="text-align:center"> 95.5	" style="text-align:center"> 98.3	" style="text-align:center"> Medium
" style="text-align:center"> 9:00	" style="text-align:center"> EUR	German IFO - Business Climate (NOV)	" style="text-align:center"> 103.0	" style="text-align:center"> 103.2	" style="text-align:center"> Medium
" style="text-align:center"> 9:00	" style="text-align:center"> EUR	German IFO - Current Assessment (NOV)	" style="text-align:center"> 108.0	" style="text-align:center"> 108.4	" style="text-align:center"> Medium
" style="text-align:center"> 10:00	" style="text-align:center"> EUR	ECB's Coeure Speaks in London	" style="text-align:center"> -	" style="text-align:center"> -	" style="text-align:center"> Low
" style="text-align:center"> 13:00	" style="text-align:center"> EUR	ECB's Weidmann Speaks in Madrid	" style="text-align:center"> -	" style="text-align:center"> -	" style="text-align:center"> Low
" style="text-align:center"> 14:30	" style="text-align:center"> EUR	ECB Announces Covered-Bond Purchases	" style="text-align:center"> -	" style="text-align:center"> -	" style="text-align:center"> Medium

Critical Levels

" style="text-align:center"> CCY	" style="text-align:center"> Supp 3	" style="text-align:center"> Supp 2	" style="text-align:center"> Supp 1	" style="text-align:center"> Pivot Point	" style="text-align:center"> Res 1	" style="text-align:center"> Res 2	" style="text-align:center"> Res 3
" style="text-align:center"> EURUSD	" style="text-align:center"> 1.2059	" style="text-align:center"> 1.2252	" style="text-align:center"> 1.2322	" style="text-align:center"> 1.2445	" style="text-align:center"> 1.2515	" style="text-align:center"> 1.2638	" style="text-align:center"> 1.2831
" style="text-align:center"> GBPUSD	" style="text-align:center"> 1.5489	" style="text-align:center"> 1.5577	" style="text-align:center"> 1.5617	" style="text-align:center"> 1.5665	" style="text-align:center"> 1.5705	" style="text-align:center"> 1.5753	" style="text-align:center"> 1.5841

" style="text-align:justify"> --- Written by Ilya Spivak Currency Strategist for DailyFX.com

" style="text-align:justify"> To receive Ilya's analysis directly via email please SIGN UP HERE

" style="text-align:justify"> Contact and follow Ilya on Twitter: @IlyaSpivak

original source

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.