Asia risk-off in full swing on China trade data, UK CPI, ZEW – key

By FXStreet FXStreet (Mumbai) – The latest import data from China added to the persisting concerns over the ongoing weakness in the domestic economy and spooked markets on yet another occasion. Thus, fuelling risk-off sentiment and boosting the safe-bids for the Japanese currency while the Antipodeans were heavily sold-off.

Key headlines in Asia

RBA’s dep governor Lowe speaking up economy

BOJ Minutes: Inflation trend continuing to improve

China Sept trade balance surges, exports show good momentum

Dominating themes in Asia – centered on JPY, AUD, NZD

Risk-aversion was reinforced in Asia as the weak China trade data disappointed markets once again and dented the investors’ confidence in risky assets. Amongst the safe-haven assets, the yen benefited the most, with USD/JPY dropping -0.15% to 119.80 region. The Japanese currency also remains lifted as markets re-assess the Oct 30 BOJ meeting risks and now believe that the central bank could wait for some more time before easing further. While today’s BOJ minutes release offered no new surprises and hence had negligible impact on the major.

The Antipodeans were the worst-hit by the China trade data and reversed their long run of gains. The Aussie was the biggest loser so far in Asia, as the weak internal demand …read more

Source:: FX Street