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Asia Recap: USD sales main theme

FXStreet (Bali) - The USD was the main laggard in Asia, with the Aussie and Kiwi rising the most on the aftermath of the FOMC minutes, which turned out to be slightly more dovish than the market had been hoping for, and a disappointing Aus jobs report, with AUD shorts caught wrong-footed.

The Aussie found dip buyers after the initial Aus jobs-driven dip, with fast money accounts (algo's) forced to buy back their AUD shorts as the USD correction continues to run its course, now with some more solid conviction as the Fed failed to provide any signs of early rate hikes.

Australia's employment change for the month of September came at -29,700 vs 20,000 exp and 32,100 last (from 121k), with the jobless rate coming at 6.1% vs 6.2% exp and 6.0% last (from 6.1%). Full time employment rose by 21,600 vs -79,300 last (from 14,300), with part time at -51,300. The participation rate was 64.5% vs 64.8% exp and 65.2% last.

The Kiwi continued to be well bid, moving further away from its key support at 0.77, currently established above 0.79, with momentum indicators having turned north across intraday timeframes, supporting the dip buying activity int he sessions ahead. Kiwi should now clear offers through 0.7950/60 to expose the next big level at 0.80.

The Japanese Yen kept finding plenty of buying interest along the 107.90/108.00 level, holding for the past two days. Meanwhile, Euro and Pound were also higher against the US Dollar, with the former capped by 1.2750 offers, while the latter is fast approaching 1.62 ahead of the BoE monetary policy decision, expected to maintain a steady rhetoric.

Key headlines

NZ electronic card retail sales keep easing

United Kingdom RICS Housing Price Balance registered at 30%, below expectations (38%) in September

Japan Machinery Orders (YoY) came in at -3.3%, above expectations (-5.1%) in September

Japan Foreign investment in Japan stocks rose from previous ¥-41.6B to ¥186.5B in October 3

Japan Foreign bond investment declined to ¥-179B in October 3 from previous ¥184.6B

Japan Machinery Orders (MoM) came in at 4.7%, above forecasts (0.9%) in September

BoJ Kuroda: Will continue to ease until price target reached

Kuroda: BOJ’s easing having intended effect

Australia's jobs take a hit in Sept, but full time jobs solid

RBA's Ellis: Need to closely eye lending standards

More weighting should be placed on other Aus labour indicators - ANZ

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