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The US Dollar (via Index) is starting Friday's session in Asia on its back boot, retesting its rising trendline from the September 8, September 20, and October 13 lows. While there weren't any significant data releases in the previous session, a further pullback in US Treasury yields weighed on the greenback; interest rate sensitive pairs like traded lower around the dip in yields.
The Australian Dollar's gains from Thursday came on the back of a mixed but generally positive September Australian jobs report, as well another ‘not too hot, not too cold' Chinese GDP report for the third quarter. Its antipodean neighbor, the , saw its losses from Thursday spill over into Friday trading as investors continued to express unease over the direction newly-minted prime minister Jacinda Ardern might take the country's economic policies.
: Friday, October 20, 2017 Asian-Pacific Releases
The Asian-Pacific calendar is quieter on Friday than it was yesterday, with neither any Australian nor Chinese data due. The only ‘high' importance event comes from Japan, where Bank of Japan Governor Kuroda will speaking. But traders will be quick to turn their attention to preparing for the weekend elections in Japan, where indications are suggesting that current Japanese Prime Minister Shinzo Abe and his LDP-led coalition will cement their grip on power. Given that the hallmark of the Abe-era has been weakness, any result other than an LDP-led coalition holding a supermajority in the Lower House of the National Diet
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: Friday, October 20, 2017
Chart of the Day: Spot Gold
Spot Gold: Retail trader data shows 79.1% of traders are net-long with the ratio of traders long to short at 3.79 to 1. The number of traders net-long is 2.6% higher than yesterday and 6.1% lower from last week, while the number of traders net-short is 6.3% lower than yesterday and 9.0% higher from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Spot may continue to fall. Positioning is more net-long than yesterday but less net-long from last week. The combination of current sentiment and recent changes gives us a further mixed Spot Gold trading bias.
Five Things Traders are Reading
by Tyler Yell, CMT, Forex Trading Instructor by James Stanley, Currency Strategist by Michael Boutros, Currency Strategist by David Song, Currency Analyst by Christopher Vecchio, CFA, Senior Currency Strategist The DailyFX US AM Digest is published every day before the US cash equity open - you can to receive this report in your inbox every day.
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