A quiet Asian session today, largely driven by risk-off flows, as nervous markets prepare for the upcoming US labor market report and Sunday’s Italian referendum. Therefore, upbeat Australian retail sales were ignored by the AUD bulls, while safe-havens such as the Japanese currency and gold remained underpinned amid negative equities and lower oil prices.

Markets now look forward to the UK construction sector PMI, in wake of yesterday’s poor UK manufacturing reading, while main market moving event for this Friday remains the US non-farm employment change figures, which will be closely eyed to confirm a Dec Fed rate hike. Also, the jobs report from Canada will remain in the spot-light for major impact on the CAD, against the backdrop of recent volatility in oil prices.

Main topics in Asia

Oct Australian retail sales beats expectations

Australia's Oct retail sales came at +0.5% vs 0.3% exp and 0.6% last. A positive input for the Aussie. 

Asian stocks weighted by Italy vote, US payrolls

Risk-off sentiment remains the underlying theme in Asia, driving the Asian equities into negative territory on the final trading day of the week.

Goldman Sachs cut Chinese equities to market weight from overweight

In its latest note, the US-based investment bank, Goldman Sachs, slashed the calls for Chinese equities to market weigh from overweight.

Brent oil retreats from 16-month high

Brent oil backed off from the 16-month high of $54.50 clocked yesterday in a move which appears to be largely chart driven.

Key focus for the day ahead

Nov NFP Preview – Goldman Sachs

Analysts at Goldman Sachs present a brief preview on the upcoming US labor market report, which will be published later today at 13.30GMT.

GBP/USD regains poise, 2-month tops eyed ahead of PMI?

The GBP/USD pair is seen on a stronger footing so far this Friday, looking to extend Thursday’s advances on the back of a broadly weaker USD and renewed hopes of a ‘Soft Brexit’ landing.

Reuters Poll: RBA to keep rates-on hold at Dec 6 meeting

Latest Reuters poll reveals that the Reserve Bank of Australia (RBA) is seen keeping the official cash rate (OCR) unchanged at a record low of 1.5% at its meeting next week on Dec 6.

Preview of the employment report - Nomura

Analysts at Nomura offered a preview of the employment report. They forecast that nonfarm payrolls increased by 160k in November, comparable with the gains seen in October.