Asian trade absorbs three sets of data overnight, one from Japan and two from Australia. The Tankan business survey is posted quarterly and is probably the most respected of the economic releases that come out of Japan. Tonight the data is expected to reveal that the economic outlook has deteriorated, and may allow a move by trade desks to build into short Jpy positions now that the Japanese fiscal year is out of the way. Australia delivers Building Approval and Retail Sales numbers that are not expected to offer anything other than a confirmation of the Reserve Bank of Australia’s recent observation that things really do not look very robust economically.
The fact that S&P Futures trade gave back all of the day’s gains in the last hour of U.S. trade will not empower the aussie, it is a pair that requires positive equity markets to easily move higher, and we do expect to see some moves off the pair at around 20:30 EDT.
The economic week really gets underway overnight with UK PMI data and them a swath of U.S. based releases from 08:30 EDT that really could create a lot of price movement of the Usd based pairs. We will update on each of the alert page sections as the momentum builds, and will post potential Jpy and Aud information if the markets make a move overnight.