Aussie hammered on poor CPI, FOMC Statement – Key

By FXStreet FXStreet (Mumbai) – Nervousness hit Asia as markets now turn their attention towards the Fed decision due to be announced later today. As a result, safe-havens were in demand, with yen and gold better bid. While the Aussie was smashed on poor inflation report and the NZD followed suit ahead of RBNZ meeting.

Key headlines in Asia

Japan Retail Trade (YoY) came in at -0.2% below forecasts (0.4%) in September

Australia Q3 inflation below RBA’s comfort zone

Chances of RBA rate cut in Nov at 66%

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

Risk-off sentiment was the underlying theme in Asia, with Asian traders on the back foot ahead of key Fed decision. Markets preferred to park their funds in safe-haven, thus the yen and gold saw renewed buying interest in the Asian trades. The yen remained better bid versus the US dollar, despite poor Japan’s retail sales data which spurred BOJ easing expectations at this Friday’s policy meet. The major steadied around the 10-DMA located at 120.40. While gold trades 0.16% higher near $ 1168 and now eyes hourly 200-SMA ahead of Fed outcome.

Moving onto higher yielding currencies, the Antipodes were heavily offered in Asia, with AUD/USD emerging …read more

Source:: FX Street