AceTraderFx: Intra-Day Market Moving News and Views

[AceTRaderForex]

AceTraderFx Nov 8: Intra-Day News and Views GBP/USD

Intra-Day Market Moving News and Views
08 Nov 2016 01:12GMT

GBP/USD - ..... Reuters reported today Britain will only start to lower public debt as a share of GDP at the end of the decade due to a Brexit-related hit to the economy, a think tank said, underscoring finance minister Philip Hammond's challenge as he prepares his first budget statement.

The Institute for Fiscal Studies predicted Britain would run a budget deficit of nearly 15 billion pounds ($18.6 billion)in the 2019/20 financial year, rather than a surplus of 10 billion pounds as forecast in the government's existing budget projections.
That budget overshoot meant debt as a share of gross domestic product would hover around its current, historically high level of 84 percent until 2019/20 when it would start to fall again, the IFS said

Finance minister Philip Hammond is expected to announce a much bleaker outlook for the economy and the public finances on Nov. 23 when he makes the country's first budget statement since the June 23 referendum decision to leave the European Union.
He has already signalled he is likely to loosen the purse strings and adopt budget rules that are more flexible than those of his predecessor George Osborne, who last year missed his target to bring down debt as a share of GDP each year.

Thomas Pope, an IFS research economist, said the think tank's deficit forecast might prove too low because it assumed the government would achieve all the tough spending cuts planned by Osborne and did not factor in promised income tax cuts.
The IFS forecast for public finances in 2019/20 included expenditure savings from the end of British contributions to the EU budget and reduced debt servicing costs due to low yields on British government bonds.

 

[AceTRaderForex]

AceTraderFx Nov 9: Daily Recommendations on Major EUR/USD

DAILY MARKET OUTLOOK
Update Time: 09 Nov 2016 01:42 GMT

EUR/USD - 1.1027
Expect 'volatile' price swings due to U.S. presidential election uncertainty, however, intra-day brief drop to 1.0990 in Asia suggests recent upmove from October's 7-month bottom at 1.0851 has made a top last Friday at 1.1143, as long as 1.1067/74 res area holds, consolidation with downside bias remains for subsequent weakness towards 1.0963 (61.8% r of said rise).
However, near term loss of downward momentum should keep euro above chart sup at 1.0936.

On the upside, a firm rise above 1.1074 would be the 1st signal aforesaid correction from 1.1143 has ended, then stronger gain to 1.1100/10 may follow.

 

[AceTRaderForex]

AceTraderFx Nov 11: Intra-Day News and Views EUR/USD

Intra-Day Market Moving News and Views
11 Nov 2016 07:08GMT

EUR/USD - 1.0913.. Euro gained respite in fairly quiet/subdued Asian session as Asian traders are pretty tired after this week's wild swings.
Although price initially dipped to 1.0876 after Asian open, buying interest emerged above yesterday's 1.0865 low and lifted price from 1.0876 to 1.0923, suggesting sideways move is likely to continue in Europe.

Euro may well edge higher on short covering as market will quieten down after European afternoon as financial markets in U.S. and Canada are closed for holiday today. Germany will shortly release October CPI data.

Bids are noted at 1.0875-65 n more below (there has been talk of option barrier at 1.0850) with stops reported below 1.0840.
Offers are tipped at 1.0940/50 with stops above 1.0960, more stops are touted above 1.1000, suggesting selling euro on intra-day recovery is still recommended.

 

[AceTRaderForex]

AceTraderFx Jun 16 : Intra-Day News and Views USD/CHF

Intra-Day Market Moving News and Views
18 Nov 2016 02:02GMT

USD/CHF - ...... Although dlr climbed a fresh 8-month high of 1.0105 in Asia today, the SNB were expressing their dismay over recent Franc's strength vs the euro. Reuters reported in NY afternoon Thursday the Swiss National Bank is active in the currency markets around the clock to check upwards pressure on the Swiss franc which remains "significantly overvalued", governing board member Andrea Maechler said on Thursday.

The central bank has increased its expertise in the foreign exchange markets and electronic trading in recent years, Maechler told a money market event in Geneva & it been selling francs in the foreign exchange markets this year, with sight deposits - seen as a proxy for its interventions - rising to record levels.

The bank's foreign currency assets ballooned to 666 billion Swiss francs ($663.61 billion) at the end of September, a rise of 31 percent since the bank scrapped its currency limit of 1.20 francs to the euro in January 2015.
It confirmed it was active in the markets after Britain's vote to quit the European Union in June, although it declined to comment on speculation it had entered the market after Donald Trump won the U.S. presidential election this month.

Governing board alternate member Dewet Moser suggested there were limits to how far the SNB could intervene.
The SNB charges banks 0.75 percent on excess deposits to help ward off interest in the franc, which is sought as a safe haven by investors in times of economic uncertainty.

Almost all Swiss banks have so far held off from imposing negative rates on retail customers, although PostFinance last week said it would start charging private customers for deposits of more than 1 million francs.
Maechler defended the policy, saying the SNB's negative interest rates and foreign currency interventions were "two mutually reinforcing measures, which are having the desired effect.

 

[AceTRaderForex]

AceTraderFx Nov 21: Intra-Day Market Moving News and Views USD/JPY

Intra-Day Market Moving News and Views
21 Nov 2016 03:06GMT

USD/JPY - ..... Dlr maintains a firm undertone in Asian trading. Price opened below Friday's New York high of 110.95 and edged higher to a fresh 5-1/2 month peak of 111.12 in Australia, although the pair retreated to 110.65 on usual yen-buying by Japanese exporters (on hedging to lock in profit), renewed buying emerged and lifted price to 111.00/03 at Tokyo midday.
Despite dlr's firmness, intra-day usd's broad-based retreat vs other G7 currencies suggests price is unlikely to yield further strong gain in Europe as risk has increased for a much-needed minor correction to take place, possibly in European morning.
Offers are tipped at 1.1110/20 with some stops above there, more selling is touted below daily res at 111.45.
Bids are noted at 110.706-0 and more below with stops reported below 110.40.

U.S. calendar is pretty light today with Chicago national activity for Oct being the only data due out at 13:30GMT.
Also, no Fed officials are scheduled after last week's bombardment, so technical trading may prove useful in today's session.

 

[AceTRaderForex]

AceTraderFx Nov 22: Intra-Day News and Views EUR/USD

Intra-Day Market Moving News and Views
22 Nov 2016 02:04GMT

EUR/USD - ..... Reuters overnight news on ECB, two of its top officials said it needs to continue supporting the euro zone economy with its ultra-loose policy, and cementing expectations for an extension of the ECB's bond-buying scheme next month.
The ECB will decide on Dec. 8 on whether and how to extend its 80 billion euros ($85 billion) monthly bond purchases. Sources have told Reuters the programme is all but certain to continue beyond its current March deadline.

President Mario Draghi told a European Parliament committee on Monday that ECB needed to maintain its current level of monetary support to bring euro zone inflation back to its target of almost 2 percent.
Euro zone inflation was 0.5 percent last month and is expected to rise beyond 1 percent early next year, mainly due to a stabilisation in oil prices.

Speaking in Munich, ECB Executive Board member Benoit Coeure said the time to start winding down the ECB's extraordinary policy accommodation had "not yet" come and the Bank needed to see a sustained rebound in inflation first.
Market-based gauges of inflation expectations have surged over the past two months and particularly since Donald Trump's U.S. election victory, which has spurred investor bets on greater fiscal spending in the United States.
But Draghi cautioned on Monday one should look beyond the market reaction to Trump's win, which will have long-term consequences that are difficult to predict.
Now sitting on more than a trillion-euros worth of government bonds, the ECB is looking for ways to ensure it can continue to find assets to buy in the coming months if its programme is extended.

Coeure said the ECB was far from having to contemplate buying stocks and had never discussed such option, which has been adopted by the Bank of Japan.
ECB sources have told Reuters one possible change being considered would see the ECB buying fewer bonds from countries where scarcity is starting to emerge, such as Germany.

 

[AceTRaderForex]

AceTraderFx Nov 22: Intra-Day News and Views GBP/USD

Intra-Day Market Moving News and Views
22 Nov 2016 10:09GMT

GBP/USD - 1.2472... Despite cable's marginal break of yesterday's high at 1.2513 to 1.2514 in Asia, lack of follow-through buying triggered profit-taking and price retreated sharply to 1.2465 at European open and continues to remain under pressure in European morning due partly to cross-selling of sterling especially vs euro.

Bids are now lowered to 1.2440/50 and more below at 1.2420/30 with stops building up above there whilst initial offers are noted at 1.2520/30, suggesting further choppy trading would be seen ahead of New York open.

 

[AceTRaderForex]

AceTraderFx Nov 23: Intra-Day News and Views EUR/USD

Intra-Day Market Moving News and Views
23 Nov 2016 01:35GMT

EUR/USD - ...... A piece of o/n news on Greek bailout talks worth noting. Reuters reported Greece will continue talks with international creditors on fiscal and labour reforms, aiming to wrap up the second review of its bailout programme by early next month ahead of a euro zone finance ministers' meeting, government officials said on Tuesday.

Mission chiefs of the creditor institutions overseeing the programme's implementation - the euro zone's ESM rescue fund, the European Central Bank, the International Monetary Fund and the European Commission - left Athens on Tuesday, leaving remaining issues to be resolved by technical staff and via teleconference.

Germany's Sueddeutsche Zeitung reported that the finance ministers of Germany, France, Italy, Spain and the Netherlands planned to meet in Berlin on Friday with IMF officials for talks on Greece's debt crisis, ahead of a euro zone ministers' meeting on Dec. 5 to discuss short-term debt relief for Greece.
Government spokesman Dimitris Tzanakopoulos told reporters that Athens could not compromise on labour reforms or adopt new austerity measures.
Despite pre-election pledges to end austerity, Prime Minister Alexis Tsipras signed up to a new bailout package with conditions in July last year, the third since the crisis broke out in 2010.

Athens now wants a swift conclusion of its second assessment to qualify for more debt relief and inclusion in the ECB's bond-buying programme early next year, which could pave the way for it to regain market access by 2018.
But disagreements on fiscal targets and unpopular labour reforms, including collective bargaining, a mechanism to set the minimum wage and giving companies more freedom to lay off workers, have clouded Greece's hopes.

Reforms in the energy sector were also among the sticking points in the talks.
Greece has to open up its natural gas market and reduce state-controlled utility Public Power Corp's DEHr.AT share of the electricity market from about 90 percent to below 50 percent by 2020.

There has at least been enough agreement with the creditors on next year's fiscal gap to enable the government to submit its final budget draft to parliament on Tuesday. It aims for a primary surplus of 2.0 percent of economic output in 2017.

 

[AceTRaderForex]

AceTraderFx Nov 24: Intra-Day News and Views USD/JPY

Intra-Day Market Moving News and Views
24 Nov 2016 02:50GMT

USD/JPY - ..... The pair trades narrowly in subdued Asian morning even though Japanese traders returned from Wednesday's market holiday. Price moved just below Wed's 7-1/2 month peak at 112.98 and Asian players are reluctant to take dlr higher after yesterday's spectacular rally from 111.12 to as high as 112.98 on the back of a surprisingly robust U.S. durable goods order and other eco. data, the market has priced in an almost 100% certainty of a rate hike by the Fed in Dec and with U.S. stocks market reaching record highs and the Nikkie at multi-month peak today, selling the yen vs its peer currencies is the way to go.

Having said that, despite aforementioned bullish factors supporting the case for a higher dlr, as U.S. financial markets are closed today for Thanksgiving Day and may traders will be off on Friday, thin market conditions will make trading a bit difficult as the dlr can easily go down sharply on long liquidation.

For now, initial bids are noted at 112.40-30 and more below with stops reported below 113.00.
On the upside, offers are tipped at 112.90/00 with some stops touted above there.

 

[AceTRaderForex]

AceTraderFx Nov 25: Intra-Day News and Views

Intra-Day Market Moving News and Views
25 Nov 2016 02:07GMT

EUR/USD - 1.0555.. Euro is trading a tad higher vs where it was in Asian morning 24 hours ago. Although euro bears gave the single currency another bashing in early European trading Thur n knocked the pair to 1.0518, a 20-month bottom, however, lack of follow-through selling quickly lifted price and euro rallied to 1.0586 after tripping stops above 1.0566/70, however, price quickly retreated once stop-buying was over and fell back to 1.0543 b4 moving sideways in holiday-thinned North American session.
Offers are tipped at 1.0560/70 and more above with stops above 1.0600.
Bids are noted at 1.0530-20 and more below with market chatter of a fairly large option barrier at 1.0500.

After yesterday's release of important German Ifo and Gfk data, traders may show relatively muted reaction to release of France's consumer confidence, Italy's industrial orders n retails sales during European morning.

Despite marginal weakness to 1.0539 in Asia as intra-day rally in dlr/yen has led to a bout of broad-based usd-buying, buying interest emerged and euro inch higher again, suggesting choppy sideways swings above 1.0518 low would continue.

 

[AceTRaderForex]

AceTraderFx Nov 28: Intra-Day News and Views EUR/USD

Intra-Day Market Moving News and Views
28 Nov 2016 01:14GMT

EUR/USD - .....Saturday, European Central Bank Executive Board member Benoit Coeure said on Greece's bailout performance review is progressing well and its timely conclusion will be a key factor in including the country's bonds in the ECB's asset buying scheme.

Greece's official creditors are assessing its performance against reforms and fiscal targets set in its bailout programme of up to 86 billion euros ($91.02 billion) agreed last summer, its third since its debt crisis exploded in 2010.
The Eurogroup of euro zone finance ministers is scheduled to meet on Dec. 5 to take stock of the progress made and set a timeline for the completion of the review.

Greek government officials said this week that there were still differences between Athens and its lenders on fiscal targets and labour and energy reforms.
Coeure said it was "vital" for Greece that the financial aid programme which ends in 2018 succeeds, noting that a fourth bailout "is not an option anyone is considering."

He said that the ECB did not have a precise timeline on including Greek government bonds in its asset buying scheme, a move Athens has high hopes for as it would help it regain market access before the bailout ends.
The ECB's Governing Council would base its assessment also on an internal analysis, taking into account other risk management considerations before making the final decision.

 

[AceTRaderForex]

AceTraderFx Nov 29: Intra-Day News and Views USD/JPY

Intra-Day Market Moving News and Views
29 Nov 2016 03:12GMT

USD/JPY - ..... Dlr orbits 112.00 level in directionless Tokyo trading after yesterday's intra-day wild swings.
Despite tumbling from 113.11 (New Zealand) to as low as 111.36 in Asian morning partly on active cross-unwinding in yen, dlr buyers emerged and the pair later ratcheted higher back to 112.79 just ahead of New York open but on to erase all of said intra-day gain as fall in U.S.
Treasury yields triggered another wave of yen-buying, dlr fell back to 111.62 ahead of Tokyo open before stabilising.

Intra-day rebound suggests further choppy trading above said yesterday's 111.36 low would continue.
Bids are noted at 111.70-60 and more below with stops below 111.30.
Offers are tipped at 111.25/35 and more above with stops reported above 112.80.

Pay attention to release of key U.S. Q3 GDP at 13:30GMT, personal consumption expenditures, Redbook retail sales, CaseShiller home price indices n then consumer confidence.
Also, Fed officials Dudely and Powell will be speaking during New York session.

 

[AceTRaderForex]

AceTraderFx Nov 30: Intra-Day News and Views USD/JPY

Intra-Day Market Moving News and Views
30 Nov 2016 03:17GMT

USD/JPY - ..... Trading the pair in Tuesday's session turned out to be quite tricky.
Despite initial weakness to 111.62 ahead of Tokyo open, dlr ratcheted higher to 112.73 in Europe on continued cross-selling in yen, the pair briefly jumped to session highs of 113.34 in early New York morning after release of upbeat U.S. GDP, however, a bout of broad-based long dlr liquidation sent price lower to 112.27 in New York afternoon.
Although price briefly dropped to 112.06 by Japanese names (exporters related) after tripping stops below 112.20, renewed buying quickly emerged and lifted dlr to112.43/44, suggesting sideways move above said Asian low is in store.

Bids are noted at 112.10-00 with stops below there, however, more buying interest is noted at 111.70-60 with stops reported below 111.30.
On the upside, offers are tipped at 112.55/65 and more above with some stops above 1113.00.

Pay attention to U.S. data later in the day starting with the volatile ADP private payrolls, personal consumption, personal income, personal consumption expenditure (PCE), Chicago purchasing manager index, pending home sales n Fed Beige book. Federal Reserve Bank Board Governor Gerome Powell will deliver a speech at 16:45GMT.

 

[AceTRaderForex]

AceTraderFx Dec 1: Intra-Day News and Views USD/JPY

Intra-Day Market Moving News and Views
01 Dec 2016 01:23GMT

USD/JPY - ..... Dlr climbed to a fresh 9-month peak of 114.83 just ahead of Tokyo open partly on downbeat Japan's economic data, Reuters reported.
Japanese business expenditure fell in the third quarter, the first annual decline since the start of 2013, in a worrying sign that uncertainty over the economic outlook is eroding companies' confidence.

The capital spending data, which is used to calculate revised gross domestic product (GDP) due on Dec. 8, underscores concerns about a fragile recovery in the world's third-largest economy.
A preliminary estimate last month showed the Japanese economy grew at 2.2 percent annualised in the July-September quarter, much faster than expected by economists, as rebounding exports offset weakness in domestic demand.

However, a recent run of soft indicators including exports, factory output and household spending raised doubt about sustainability in the economic growth.
Ministry of Finance data showed today on Capital spending in July-September fell 1.3 percent year-on-year, slowing from a 3.1 percent annual gain in the previous quarter.
It was the first annual decline since January-March 2013, shortly after Prime Minister Shinzo Abe swept to power with a pledge to pull the economy out of stagnation and deflation.

On the quarter, capital expenditure rose 0.4 percent from the previous three months on a seasonally-adjusted basis after excluding software spending, up for the first time in four quarters.
Analysts usually watch the MOF capex data for clues on revised GDP figures, but this time is different, some say.

 

[AceTRaderForex]

AceTraderFx Dec 2: Intra-Day News and Views EUR/USD

Intra-Day Market Moving News and Views
02 Dec 2016 01:34GMT

EUR/USD - ..... Euro rallied in New York session on ECB's tapering report n extended overnight gain in New York session to 1.0677 in Asia on Friday.
Reuters reported earlier the ECB will extend its bond purchases beyond March and consider sending a formal signal after its policy meeting next Thursday that the programme will eventually end, senior sources with direct knowledge of discussions said.
Even some sceptics of more stimulus on the bank's Governing Council have accepted that an extension beyond the current expiry date of March is inevitable given weak underlying inflation and heightened political risk.

They are still wrestling with the question of how to structure that extension, however, according to multiple senior sources at the European Central Bank and national central banks.
Much of the preparatory staff work has focused on a six-month extension at a steady pace of 80 billion euros per month, an option favoured by many as growth is sluggish, inflation lacks momentum and political risk from key elections keeps the chances of market volatility high.
But some have indicated they would favour an extension at lower volumes, for example nine months at 60 billion euros a month, fearing that a straight extension could make the programme appear open-ended, a compromise under discussion would be to signal the programme's eventual end, possibly in the bank's forward guidance, indicating that the purchases cannot be extended indefinitely.

Another option is not to specify monthly purchase volumes, essentially making them dependent on economic developments, the sources said. That would allow the ECB to buy up to 80 billion euros without requiring it to spend the full amount.
Another source from a country that is not seen to be in the hawk or dove camp said he estimated there was a majority on the council in favour of sending such a signal.

 

[AceTRaderForex]

AceTraderFx Dec 5: Intra-Day News and Views EUR/USD

Intra-Day Market Moving News and Views
05 Dec 2016 00:08GMT

EUR/USD - ...... he euro dropped in early Asian trade on Monday after exit polls showed Italian Prime Minister Matteo Renzi suffered a heavy defeat in a referendum over his plan to reform the constitution.
The euro dropped 0.6 percent to $1.0585, edging closer to its 1 1/2-year low of $1.0518 touched late last month. Against the yen, the common currency fell more than 1.0 percent to 119.70 yen.

Italian Prime Minister Matteo Renzi has staked his political future on the referendum, and many market players expect him to step down. Renzi will address the nation at around midnight (2300 GMT), government sources said.

Political instability could undermine Italy's fragile banking system especially when Monte dei Paschi di Siena, the country's ailing third biggest lender, needs to raise 5 billion euros by year end to avert the risk of being wound down.
Italy's Prime Minister Matteo Renzi has lost a referendum on constitutional reform by a wide margin, exit polls showed on Sunday, throwing his future into doubt and opening the door to renewed political instability in Italy. Renzi, who had promised to resign if his flagship project was defeated, is due to address the nation.
An exit poll by the Piepoli Institute/IPR for state television station RAI, estimated the 'No' vote at 54-58 percent against 42-46 percent for 'Yes'. Two other polls gave 'No' a similar lead of at least 10 points. Voting ended at 11 p.m.

The euro EUR=D4 immediately fell against the dollar on the exit polls, slipping to $1.0580 from $1.0625.

 

[AceTRaderForex]

AceTraderFx Dec 5: Intra-Day News and Views GBP/USD

Intra-Day Market Moving News and Views
05 Dec 2016 10:02GMT

GBP/USD - ..... Another price of upbeat U.K. eco. news. Reuters just reported businesses in Britain's services sector grew at their fastest pace since January last month, a survey showed on Monday, and the broader economy kept up its momentum in late 2016, even if firms have some worries about the year ahead.

The Markit/CIPS services purchasing managers' index (PMI) - a closely watched gauge of the services sector - rose to 55.2 in November from 54.5 in October, beating all the forecasts in a Reuters poll of economists.
Despite a dip in the equivalent survey of manufacturers published last week, overall the November PMIs suggest the economy as a whole will maintain the third quarter's solid 0.5 percent growth rate through to the end of the year, Markit said.
Most economists and the Bank of England said Britain's economy would slow sharply after June's vote to leave the EU. But strong consumer demand and a boost to exporters from the heavy post-referendum fall in sterling have kept growth going.

A separate survey by manufacturing lobby EEF released earlier on Monday showed a boost in new orders and a better-than-expected recovery in output.

Last month the Bank of England revised up its forecasts to pencil in 0.4 percent growth for the last three months of 2016. But it also said annual growth would slow to 1.4 percent next year from 2.2 percent in 2016 as higher inflation squeezes household incomes.

Businesses are already starting to feel the pinch of costlier imports due to the fall in sterling, and Markit said business costs had risen by the most in five-and-a-half years during the past two months.
The BoE forecasts inflation will surge to 2.7 percent next year from 0.9 percent in the most recent data, and many private-sector economists think it could rise even faster.
However, very few expect the BoE to reverse August's rate cut in response. On Friday the central bank's chief economist, Andy Haldane, warned against hasty action. BoE Governor Mark Carney will speak on the economy later on Monday.

Services businesses taking part in the PMI reported a positive outlook overall as the weak pound boosted foreign orders. They also expected domestic demand to remain resilient.
However, optimism fell to the lowest since just after June's referendum and the second-lowest in four years.

 

[AceTRaderForex]

AceTraderFx Dec 6: Intra-Day News and Views AUD/USD

Intra-Day Market Moving News and Views
06 Dec 2016 06:01GMT

AUD/USD - ...... Reuters reported earlier Australia's central bank held rates steady at its last policy meeting of the year on Tuesday, but sounded a note of caution on economic growth after a run of soft data pointed to a possible contraction in the third quarter.
The Reserve Bank of Australia (RBA) ended Tuesday's meeting with rates at a record low of 1.5 percent following two easings this year, but conceded the annual pace of growth was set to slow.

Governor Philip Lowe also dropped a reference to the economy growing at potential in his statement.
Policymakers have been sounding more optimistic on the economic outlook amid higher prices for key commodity exports.
A report on Australia's gross domestic product is due on Wednesday and analysts now fear it could show a small contraction, the first since early 2011.
The risk of a negative GDP number was enough to pull the local dollar down a quarter U.S. cent to $0.7450.

Interbank futures still suggest the market sees scant chance of another cut in rates for the next few months, though any thought of a hike has also been priced out.

Low inflation and a lacklustre labour market could put the RBA on notice to cut rates further. Underlying inflation is stuck at a record low of 1.5 percent and seems likely to remain below the RBA's 2 to 3 percent target band for another year or more.
Employment growth has also disappointed in recent months, while being heavily skewed toward part-time jobs.

 

[AceTRaderForex]

AceTraderFx Dec 7: Intra-Day News and Views AUD/USD

Intra-Day Market Moving News and Views
07 Dec 2016 01:11GMT

AUD/USD -.... Aussie fell from Asian 0.7474 high to 0.7418 after release of downbeat Australian GDP data.
Reuters reported Australia's economy shrank for the first time in over five years last quarter as businesses, consumers and government all cut back on spending, an unexpected blow that will challenge policymakers' optimism for growth.

The local dollar AUD=D4 sank about half a cent after the Australian Bureau of Statistics reported gross domestic product (GDP) fell 0.5 percent in the third quarter, from the second when it rose a revised 0.6 percent.
That was the first contraction since early 2011 and only the fourth since the country's last recession in 1991.

The value of all goods and services was 1.8 percent higher than the same quarter last year, pulling back sharply from around 3.1 percent in the second quarter.
Business investment was the biggest drag with miners still unwinding a decade-long spending boom, while home building retreated after a very strong run.

The contraction was a major embarrassment to the conservative government of Malcolm Turnbull which won an election in July on a promise of delivering growth and jobs.
It was also chastening for the Reserve Bank of Australia (RBA) which has recently been sounding more upbeat on the economic outlook.

The bank conceded growth would slow when it held rates at 1.5 percent this week, but also predicted an eventual pick up.
So far, investors seem to share the RBA's optimism as rate futures 0#YIB: imply scant chance of another rate cut in the next few months, though all thought of a hike has also vanished.

 

[AceTRaderForex]

AceTraderFx Dec 7: Intra-Day News and Views GBP/USD

Intra-Day Market Moving News and Views
07 Dec 2016 10:15GMT

GBP/USD - 1.2595... The British pound remained under pressure n continued to edge lower in Asia and hit 1.2622 at European open due partly to cross-selling of sterling especially vs euro.
Intra-day decline accelerated in European morning after the release of poor UK industrial and manufacturing output data and dropped to 1.2581 before stabilising.

Offers are now seen at 1.2610/20 n more above at 1.2630/40 with stops building up above there whilst initial bids are noted at 1.2520/30, suggesting choppy trading with downside bias would be seen.