It’s a quiet start to today’s trading without any major releases from Asian markets. The Hang Seng Index continued to recoup its losses from last week. As of this writing, it is up roughly over 300 points or 1.16% at 26,998.4. Meanwhile, the Nikkei is down 124 points or 0.53% at 23,292.7.
The only report that came out in the Asian session was the RBA meeting minutes. It revealed that the RBA had considered cutting rates in its November 4 meeting which consequently sent the Aussie lower against its major counterparts.
Asian equities will likely remain flat as the world awaits for updates surrounding the US-China trade negotiations. The most recent news is that there is reluctance from the Trump administration to roll back tariffs on Chinese goods. However, this is not exactly something new. US President Donald Trump had said a couple of weeks ago that they had not agreed on rollbacks after earlier reports said that they were close to a deal.
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USDJPY Outlook
USDJPY has been trading flat, within a 24-pip range in the Asian session. There are no top-tier economic data scheduled for release from the US today, only minor construction reports. Data on US building permits is scheduled for release at 1:30 pm GMT. The estimate is for the report to show $1.39 million. Meanwhile, statistics on housing starts is eyed at $1.32 million.
A straddle trade on USDJPY could work as news surrounding the US-China trade deal may park volatility on the currency pair and trigger a breakout. An upside break above the Asian session highs at 108.68 could send USDJPY to test resistance at yesterday’s highs at 109.06. On the other hand, a close below lows at 108.44 may push USDJPY lower to its November 14 lows at 108.22.Download our latest quarterly market outlook for our longer-term trade ideas.
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