Yesterday, Australian Treasury secretary John Fraser was speaking in parliamentAt a Senate estimates hearingVia the Sydney Morning Herald:Said the Australian household sector's assets are around five times greater than its debts”That said, asset values can always fall, and often do, while debt values generally don't, squeezing net worth in the process and perhaps more importantly, around 75 per cent of household assets are in housing and superannuation” For these reasons, he said, Australian financial regulators are alive to the risks presented by household sector debt, and will continue to closely enforce sound lending practices by Australian financial institutions. Fraser also added:”in the next hundred years interest rates will go up” “People should be wise to prepare themselves for that” Fraser not sounding like he is in the 2018 rate hike camp.Read More →

Japanese Trade Minister – Very strong chance 11 nations can reach broad agreement on TPP Comments from Japan Trade Minister crossing the wires via Reuters-
See very strong chance 11 nations can reach broad agreement on TPP at APEC summit in November Kobe Steel, Nissan are unique problems, don't represent Japan manufacturers' stance on corporate governance GOVT hopes to continue promoting steps to enhance corporate governance in JapanRead More →

USD/JPY losing altitude on soft risk? Risk-off on Wall Street and a soft tone in the Asian equities dragging USD/JPY lower. US 10-yr treasury yield holds above 2.4 percent, but sustained gains remain elusive, thus USD bulls struggle to keep the pair above 114.00. The soft tone in the Asian equities is pushing the Japanese Yen higher. The USD/JPY pair currently trades around 113.44 levels, having clocked a high of 113.75 and low of 113.37.
The US 10-year treasury yield rose to a six-month high of 2.47 percent on Wednesday before falling back to 2.43 percent, largely due to 0.48 percent drop in the DJIA. The moderate risk-off seems to have hit the Asian shores as well. Australia's S&P/ASX 200 is down 0.14 percent, while Hong Kong's Hang Seng has shed 0.4 percent.
Consequently, the JPY has found some love, although it could be short lived if the 10-year treasury yield defends the former resistance turned support level of 2.4 percent.
USD/JPY Technical Levels
Jim Langlands fr..Read More →

U.S. equities declined on Wednesday, as a recent batch of corporate earning reports fell short of investors' expectations. Concerns of increasing bond yields also weighed on sentiment in stocks.
The Dow Jones industrial average dropped 0.48 percent to 23,329.46, its largest one-day decline since Sept. 5. The index lost 200 points at its session lows.
The S&P 500 shed 0.47 percent to 2,557.15, with industrials and telecommunications leading losses. The S&P had its worst day since Sept. 5. The Nasdaq composite was down 0.5 percent to 6,563.89.
Selling was broad, with each of the 11 major S&P sectors in negative territory.
Boeing contributed the most losses to the Dow. The stock fell 2.8 percent after two of its businesses saw losses in revenue compared to 2016, mostly as a result of $329 million in costs due to production problems of the KC-46 aerial refueling tanker.
Chipotle Mexican Grill was the biggest decliner on the S&P, tumbling 14.6 percent after its quarterly results ..Read More →

Export prices in Australia skidded 3.0 percent on quarter in the third quarter of 2017, the Australian Bureau of Statistics said on Thursday.
That beat forecasts for a decline of 4.0 percent following the 5.7 percent drop in the three months prior.
The fall was driven by lower prices received for coal, coke and briquettes (-7.4 percent), metalliferous ores and metal scrap (-1.5 percent) and gas, natural and manufactured (-4.0 percent).
On a yearly basis, the export price index spiked 14.2 percent, driven by coal, coke and briquettes (62.1 percent).
Import prices were down 1.6 percent on quarter, missing slightly forecasts for a decline of 1.5 percent following the 0.1 percent contraction in the second quarter.
The fall was driven by lower prices paid for telecommunication and sound recording equipment (-7.8 percent), petroleum, petroleum products and related materials (-2.0 percent) and office and automatic data processing machines (-4.7 percent).
On a yearly basis, the import pr..Read More →

Adam posted up a video on the Bank of Canada decision earlier today (he was live in BNN's studio)It was another surprise from Poloz and another big move in the Canadian dollar.Check out the video at this post here: Video: What the Bank of Canada decision means for the Canadian dollar
When you are finished, check out this video also made today. Its nothing to do with FX but it is LOL funny!Read More →

Greg posted on the Australian inflation data yesterday:The weaker CPI slowed the AUDNZD a bit. AUDJPY cracking lower.Lower CPI send the AUDUSD lower. Tests key swing area.Australian CPI for 3Q 0.6% vs. 0.8% estimate. Trimmed mean 0.4% vs 0.5% est.iAnd, from earlier today I had this:AUD – HSBC on the inflation data, roll back their rate hike callVia Capital economics, another response to the data (in brief) and what they see as implications for the Reserve Bank of Australia:The drop back in the headline inflation rate … is quite remarkable given the surge in utility pricesIt just underlines the weakness of price pressures in other areas, which supports our view that the RBA won't raise interest rates at all next yearthe RBA will view the rise in utilities prices as a hit to households' spending power rather than a sign that inflation pressures are buildingsubdued demand and intense competition is keeping a lid on inflation across the economy. That won't change soon.Thes..Read More →