Yen May Resume Rise as Aussie, NZ Dollars Fall as Market Mood Sours

TALKING POINTS – YEN, AUSTRALIAN DOLLAR, STOCKS, RISK AVERSION, EURO, PMI

  • Yen down, Aussie and NZ Dollars as corrective flows define APAC trade
  • SP 500 futures point sharply lower, hinting risk-off trade set to return
  • Euro unlikely to find lasting direction cues from October PMI roundup

The sentiment-geared Australian and New Zealand Dollars traded higher while the anti-risk Japanese Yen retreated as the G10 FX currencies retraced following yesterday’s market rout. These moves may soon reverse course however as futures tracking the bellwether SP 500 index point convincingly lower before the opening bell on Wall Street, hinting another bout of risk aversion is in the cards ahead.

EURO UNLIKELY TO FIND CATALYST IN PMI DATA

A preliminary look at October’s Eurozone PMI survey roundup headlines the economic calendar in European trade. The regional composite gauge is expected to show that manufacturing- and service-sector activity growth slowed last month, marking a second consecutive decline.

Absent an improbably dramatic deviation from forecasts, this data is unlikely to mean much for the Euro given its limited implications for near-term ECB policy, which seems to be

Article source: https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2018/10/24/Yen-May-Resume-Rise-as-Aussie-NZ-Dollars-Fall-as-Market-Mood-Sours.html