• Retail Sales out of Japan showed a fall of 1.2% (YoY) (vs. +0.4% previously and -0.8% expected)
  • ANZ Business Confidence in New Zealand jumped to 26.4 (from 17.2 prior)
  • HIA October New Home Sales in Australia came in at +3.4% vs. -3.7% previously
  • The eagerly awaited capex figures were out in Australia, New Capital Expenditure for Q3 came in at +2.8% (better than the . +2.0% expected, but lower than the +3.4% in Q2). The capex figures are a key input into the RBA decision on rates due on Tuesday (Dec. 4) – for AUD traders, see today’s ForexLive special Capex Wrap
  • Comments from Abe earlier in the day were unsurprising – he called for continued, unlimited, BOJ easing until inflation was at 2pct
  • Comments from BOJ member Sayuri Shirai later in the day were more measured, he recognised the risk of inflation undershooting the BOJ forecast and said the BOJ will continue to consider how to beat deflation

5pm New York kicked off the Asian session with a bang today as the EUR/USD rallied sharply, gapping through 1.2945 and 1.2950, reaching a high of 1.2961. There was no news at the time provoking the move. 1.2960 proved a sell level, though, with offers seen at .12970 through 1.2980, the EUR/USD ‘filled the gap’, trading back toward 1.2940 before re-testing 1.2960 and being rejected again. This was a busy move for EUR/USD in Asia lately.

USD/JPY started its move higher a little earlier, from around 4pm – again there was no news discernible – USD/JPY just grinding steadily higher toward 82.10. It got as high as 82.22 on Abe’s comments, but attracted sell orders there; like EUR/USD it traded in a range for the balance of the session.

AUD/USD found ‘risk on’ strength earlier in New York and maintained that tone (the topside limited by offers at 1.0480/90 and barrier interest at 1.0500 – thanks Gerry!) until the 0030GMT release of the capex figures. The figures, on balance, were taken by the market as slightly increasing the odds of a cut at the RBA meeting next week (a view much of the mkt does not share, though) – the AUD/USD lost a little ground to 1.0458.

Cable, NZD and CAD were very quiet – the NZD nevertheless on a slight upward trajectory.