Forex Today: Aussie weakest in Asia, Catalan independence outcome eyed

Forex Today: Aussie weakest in Asia, Catalan independence outcome eyed  

Forex today experienced mixed sentiment amid a data-quiet Asian session on Monday, with the only Chinese inflation figures released. The Antipodeans maintained its corrective slide, despite upbeat China CPI and PPI reports, while higher oil prices and Asian equities also failed to boost both the OZ currencies. The Yen kept losses below 112 handle versus its American counterpart, as the greenback traded broadly higher.

Meanwhile, the GBP/USD pair remained on track to regain 1.33 handle, following the reports that the UK PM May and Brexit Secretary, David Davis', will make an 'emergency' trip to Brussels. The Euro on the other hand, traded on the back foot amid ECB QE headlines and expectant of the outcome on the Catalan independence declaration deadline ending today.

Main topics in Asia

What Austria's election says about Europe's political landscape - RTRS

Reuters out with the key takeaways from the weekend’s Austrian elections, citing:

N.Korea ready for missile launch ahead of US-South Korea drill

As per South Korean media reports, North Korea is believed to be preparing to launch a ballistic missile ahead of an upcoming joint naval drill by the US and South Korea. 

N.Korea's threat to Australia - News Corp Australia Network

As the international community braces for another missile test by the rogue nation this week.

China's CPI m/m a tad firmer in September, beats estimates

China's Consumer Price Index (MoM) (September) came in at 0.5% vs 0.4% exp and 0.4% last, while Consumer Price Index (YoY) (September) was 1.6% vs 1.6% exp and 1.8% last.

Some ECB policymakers see QE limit of just over EUR2.5trillion - BBG

Bloomberg quoted unnamed central-bank officials familiar with the matter on Sunday, citing that some of the ECB policymakers see QE limit of just over EUR2.5trillion.

Asian stocks at decade highs on higher oil, global equity surge

The stocks on the Asian bourses extended its last week’s bullish streak and refreshed fresh 10-year highs, taking the positive lead from its Wall Street counterpart.

Key Focus ahead

Heading into Europe, we have a data-light calendar to kick-off a brand new week, with the German WPI and Eurozone trade balance on the cards. However, the key risk event for the EUR, GBP traders remain the deadline to confirm if Catalonia declared the Independence, which is expected around 0800GMT.

In the NA session, the BOC business outlook survey and US Empire statement manufacturing index will offer some near-term trading impetus ahead of the NZ CPI report slated for release in early Asian trading tomorrow.

EUR/USD: Further downside in play ahead of Catalan independence outcome

The EUR/USD pair breached the 1.1800 levels for the first time in three days in Asia this Monday, set-off the week on the defensive, as political uncertainty surrounding Catalonia’s independence vote remains the key focus.

GBP/USD: bulls eye 1.3340 as next target through 1.33 the figure

GBP/USD was firmer on higher UK rates with the short Sterling calendar spreads at new YTD highs, in stark contrast to that of Europe's hence the offer in the cross.

The week ahead - Nomura

Analysts at Nomura offered their outlook for the economy for the week ahead.

UK next week: CPI, jobs, Carney and Brexit - Danske Bank

Analysts from Danske Bank think the CPI inflation print for September and the jobs report for August are the two most important releases.