Forex Today: AUD rebounds in tandem with Metals, Fedspeaks eyed

Broad based US dollar correction remained the key theme in Asia this session, despite post-election extended risk-on sentiment. Hence, most majors benefited from broad USD weakness, although gains remained capped as markets reassess a Trump win and its implications over the longer-run.

While NZD/USD witnessed wild swings almost throughout the Asian session, and now remains under pressure after a 25bps rate cut by RBNZ and intervention talks by Governor Wheeler and Assistant Governor McDermott.

Looking ahead, we have a fairy light European calendar, with second-tier data from Italy and France expected to virtually no impact on the markets. Hence, attention turns towards NA docket for the weekly jobless claims and Canadian NHPI data for fresh incentives.

Besides, FOMC member Bullard’s speech will be closely eyed for fresh hints on the US interest rates outlook, especially after the US elections.  He is scheduled to speak about the US economic outlook at the Commerce Bank conference, in St. Louis.

Main topics in Asia

S&P affirms stable outlook for the United States of America

The rating agency S&P affirms the stable outlook for the United States of America following the stunning upset of Trump being the new President-elect. 

Iron ore is on fire, jumps 9%

Heightened expectations of fiscal splurge in US following Trump’s victory in the Presidential Elections set iron ore and other base metals on fire.

Asia cheers Trump’s win, Nikkei 225 rebounds +6%

Amid a dramatic turnaround in risk conditions following Trump’s victory at the US presidential elections, the Asian stocks stage a solid rebound this Thursday.

RBNZ’s Wheeler: Markets analyzing impact of Trump win on trade

The Reserve Bank of New Zealand (RBNZ) Governor Wheeler was on the wires an hour ago, making a scheduled speech in parliament, after announcing a 25 bps rate cut at its cash rate decision earlier on the day.

Key focus for the day ahead

Europe Higher Following Stunning Post-Election Rebound

European equity markets are expected to open around 1% higher on Thursday following a stunning rebound late on Wednesday, as initial risk aversion to Trumps election subsided and investors seized on the opportunity to bag some bargains as appetite suddenly returned.

US election implications for the euro area – Deutsche Bank

Research Team at Deutsche Bank, suggests that their preliminary view is that the policies championed by Trump during the presidential campaign are likely to weigh on the already challenging euro-area outlook.

Ex-MOF Watanabe: “If yen spikes by 3 yen or more, Japan should not hesitate to intervene"

In an interview with Reuters on Thursday, former deputy finance minister Hiroshi Watanabe said that Japan should be prepared to intervene in forex markets, should the yen appreciate sharply.

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