Asia pacific equity markets opened on a positive note on Tuesday following overseas gains overnight. Traders put on hold concerns about U.S. tax reforms and European political issues as this will be a short week for the U.S. stock market, which is set to be closed Thursday for the Thanksgiving holiday. Energy prices remain in focus ahead of next week's OPEC meeting where oil producers will decide whether to extend output cuts beyond March 2018.
USDJPY is currently seen trading around 112.50 after bouncing from a one-month low of 111.890 on Monday. A pullback in the yen helped Japanese stocks, Japan’s Nikkei 225 is currently up 0.75 % after reaching as high as 1.1 percent early on Tuesday. The Nikkei had fallen in seven of the past nine sessions after October’s big gains.
EURUSD down from session lows of 1.1730 is slightly up seen trading around 1.1750 currently. The common currency declined after news emerged on Monday that German Chancellor Angela Merkel's efforts to form a coalition government had failed, thus making the political outlook for Europe's largest economy uncertain. The dollar index, which tracks the dollar against a basket of currencies was down 0.10 % and is currently valued at 93.97. The yield on 10-year Treasuries was steady at 2.36 percent.
AUDUSD fell as low as 0.7532 earlier in the session hitting a 5-month low but has since recovered to current levels of 0.7540. Overall the Australian dollar is down 0.1 percent against the USD. AUD was weighed on a little by November RBA meeting minutes. Australia’s 10-year yield was little changed at 2.55 percent. The New Zealand dollar is also slightly lower in the session and is currently valued at 0.6804 against the USD.
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