Yen May Continue Higher as Aussie, NZ Dollars Fall on Risk Aversion

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

Aussie and NZ Dollars Fall Yen Gains as Risk Aversion Grips Asian Markets
Currencies to Look Past German UK Data with Sentiment Trends in Focus
See Economic Releases Directly on Your Charts with the DailyFX News App

The Australian Dollar underperformed in overnight trade falling as much as 0.8 percent on average against its leading counterparts. The move tracked a drop in futures on Australia’s benchmark S&P/ASX 200 stock index pointing to risk aversion as the catalyst behind the impetus to sell the sentiment-linked currency.

The broader MSCI Asia Pacific regional benchmark equity index declined 0.7 percent pulling the risk-geared New Zealand Dollar downward and boosting haven demand for the Japanese Yen. The former currency lost as much as 0.4 percent while the latter advanced 0.6 percent against the majors.

The economic calendar is relatively quiet in European trading hours. UK Industrial Production and German Trade Balance figures are tap but the outcomes seem unlikely to stir meaningful volatility for the British Pound or the Euro considering their limited implications for near-term BOE and ECB monetary policy.

On balance risk appetite trends seem likely to remain at the forefront. S&P 500 futures are pointing decidedly lower in late Asian trade hinting sentiment may remain under pressure in the hours ahead. That is likely to translate into continued gains for the Yen as well as outsized losses for commodity-bloc currencies.

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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"> 21:00	" style="text-align:center"> NZD	ANZ Truckometer Heavy (MoM) (NOV)	" style="text-align:center"> -2.9%	" style="text-align:center"> -	" style="text-align:center"> 0.8%
" style="text-align:center"> 21:45	" style="text-align:center"> NZD	Card Spending Total (MoM) (NOV)	" style="text-align:center"> -0.3%	" style="text-align:center"> -	" style="text-align:center"> 1.5%
" style="text-align:center"> 21:45	" style="text-align:center"> NZD	Card Spending Retail (MoM) (NOV)	" style="text-align:center"> -0.1%	" style="text-align:center"> 0.2%	" style="text-align:center"> 1.0%
" style="text-align:center"> 22:30	" style="text-align:center"> AUD	ANZ Roy Morgan Weekly Consumer Conf	" style="text-align:center"> 110.4	" style="text-align:center"> -	" style="text-align:center"> 113.9
" style="text-align:center"> 23:50	" style="text-align:center"> JPY	Japan Money Stock M2 (YoY) (NOV)	" style="text-align:center"> 3.6%	" style="text-align:center"> 3.2%	" style="text-align:center"> 3.2%
" style="text-align:center"> 23:50	" style="text-align:center"> JPY	Japan Money Stock M3 (YoY) (NOV)	" style="text-align:center"> 2.9%	" style="text-align:center"> 2.6%	" style="text-align:center"> 2.6%
" style="text-align:center"> 0:01	" style="text-align:center"> GBP	BRC Sales Like-For-Like (YoY) (NOV)	" style="text-align:center"> 0.9%	" style="text-align:center"> 0.6%	" style="text-align:center"> 0.0%
" style="text-align:center"> 0:30	" style="text-align:center"> AUD	NAB Business Confidence (NOV)	" style="text-align:center"> 1	" style="text-align:center"> -	" style="text-align:center"> 5
" style="text-align:center"> 0:30	" style="text-align:center"> AUD	NAB Business Conditions (NOV)	" style="text-align:center"> 5	" style="text-align:center"> -	" style="text-align:center"> 13
" style="text-align:center"> 6:00	" style="text-align:center"> JPY	Machine Tool Orders (YoY) (NOV P)		" style="text-align:center"> -	" style="text-align:center"> 30.8%

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"> 6:45	" style="text-align:center"> CHF	Unemployment Rate (NOV)	" style="text-align:center"> 3.2%	" style="text-align:center"> 3.1%	" style="text-align:center"> Medium
" style="text-align:center"> 6:45	" style="text-align:center"> CHF	Unemployment Rate s.a. (NOV)	" style="text-align:center"> 3.2%	" style="text-align:center"> 3.2%	" style="text-align:center"> Medium
" style="text-align:center"> 7:00	" style="text-align:center"> EUR	German Labor Costs s.a. (QoQ) (3Q)	" style="text-align:center"> -	" style="text-align:center"> 0.7%	" style="text-align:center"> Low
" style="text-align:center"> 7:00	" style="text-align:center"> EUR	German Labor Costs w.d.a. (YoY) (3Q)	" style="text-align:center"> -	" style="text-align:center"> 1.7%	" style="text-align:center"> Low
" style="text-align:center"> 7:00	" style="text-align:center"> EUR	German Trade Balance (€) (OCT)	" style="text-align:center"> 18.9B	" style="text-align:center"> 21.9B	" style="text-align:center"> Medium
" style="text-align:center"> 7:00	" style="text-align:center"> EUR	German Current Account (€) (OCT)	" style="text-align:center"> 18.0B	" style="text-align:center"> 22.3B	" style="text-align:center"> Low
" style="text-align:center"> 7:00	" style="text-align:center"> EUR	German Exports s.a. (MoM) (OCT)	" style="text-align:center"> -1.7%	" style="text-align:center"> 5.5%	" style="text-align:center"> Low
" style="text-align:center"> 7:00	" style="text-align:center"> EUR	German Imports s.a. (MoM) (OCT)	" style="text-align:center"> -1.7%	" style="text-align:center"> 5.2%	" style="text-align:center"> Low
" style="text-align:center"> 9:30	" style="text-align:center"> GBP	Industrial Production (YoY) (OCT)	" style="text-align:center"> 1.8%	" style="text-align:center"> 1.5%	" style="text-align:center"> Medium
" style="text-align:center"> 9:30	" style="text-align:center"> GBP	Industrial Production (MoM) (OCT)	" style="text-align:center"> 0.2%	" style="text-align:center"> 0.6%	" style="text-align:center"> Medium
" style="text-align:center"> 9:30	" style="text-align:center"> GBP	Manufacturing Production (MoM) (OCT)	" style="text-align:center"> 0.2%	" style="text-align:center"> 0.4%	" style="text-align:center"> Medium
" style="text-align:center"> 9:30	" style="text-align:center"> GBP	Manufacturing Production (YoY) (OCT)	" style="text-align:center"> 3.2%	" style="text-align:center"> 2.9%	" 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"> 1.2109	" style="text-align:center"> 1.2206	" style="text-align:center"> 1.2261	" style="text-align:center"> 1.2303	" style="text-align:center"> 1.2358	" style="text-align:center"> 1.2400	" style="text-align:center"> 1.2497
" style="text-align:center"> GBPUSD	" style="text-align:center"> 1.5351	" style="text-align:center"> 1.5488	" style="text-align:center"> 1.5570	" style="text-align:center"> 1.5625	" style="text-align:center"> 1.5707	" style="text-align:center"> 1.5762	" style="text-align:center"> 1.5899

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

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

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