Global Markets:
- Asian stock markets: Nikkei fell 2.85%, Shanghai Composite fell 1.08%, Hang Seng fell 2.38%, ASX200 fell 2.22%
- Commodities: Gold at $1106.80 (-0.09%), Silver at $14.61 (-0.09%), WTI Oil at $44.11 (-0.09%), Brent Oil at $47.40 (-0.38 %)
-
Rates: US 10 year yield at 2.18% UK 10 year yield at 1.87%, German 10 year yield at 0.70%
News & Data:
- Australia Unemployment Rate (Aug): 6.2% (exp 6.2% prev 6.3%) -Australia Participation Rate (Aug): 65.0% (exp 65.0% prev 65.1%)
- Kuroda: Will Maintain QQE Until 2% Target IS Met, But Will Consider Various Effects & Options – MNI
- Australia Employment Change (Aug): 17.4K (exp 5.0K prev rev 37.9K)
- [BREAKING] China CPI (YoY) Aug: 2.0% (exp 1.8% prev 1.6%) -China PPI (YoY) Aug: -5.9% (exp -5.6% prev -5.4%)
- RBNZ Gov Wheeler: Dairy Price Drop Is NZD 7 Bln Hit To Economy – BBG
- Kuroda: Excess Reserve Rates Helps To Increase Monetary Base, Not Considering Easing That Rate – BBG
- New Zealand REINZ House Sales (YoY) Aug: 41.7% (prev 37.8%)
- Japan PPI (MoM) Aug: -0.6% (exp -0.4% prev rev -0.3%) -Japan PPI (YoY) Aug: -3.6% (exp -3.3% prev rev -3.1%)
- Japan Machine Orders (MoM) Jul: -3.6% (exp -3.0% prev-7.9%) -Japan Machine Orders (YoY) Jul: 2.8% (exp 10.3% prev 16.6%)
Major currencies update: Major currencies appear to continue trading in a volatile rangebound manner. Yesterday, the Nikkei climbed higher more than 5.0%, posting its largest intraday gains in seven years. The USD/JPY pair was carried higher, following in suit, rallying 140 pips from open to close, before peaking in yesterday’s US session at 121.10. The pair has since traded lower into today’s Asian session of trading to a current spot price of 120.35. In the case of the Euro, the pair has remained to swing intraday, yesterday moving as low as 1.1140. The pair rallied through the US session, and broke the intraweek high of 1.1230, in today’s Asian trading, with price now settling at 1.1215. On the side of cable, the pair has halted its recent strong gains on a bolstered risk appetite and M&A chatter, to retrace lower from a high of 1.5400 to a current spot price of 1.5350. For a majority of the year, the Swiss Franc has been what was considered a proxy trade to the Euro. This relationship however can be argued to be breaking down, as factors such as ‘risk-on’/’risk-off’ and safe haven asset demand begin to diverge the two from another. The USDCHF pair is currently rallying to a current price of 0.9785, having bottomed in late US trading at 0.9730. The EUR/CHF for one, is trading sub 1.1000, continuing its upmove since mid-August.
Commodity currencies update: After seeing a higher than expected Australian job readings, the Aussie is currently trading up from its low of 0.6950, to currently trading at the 0.7000 figure. Key resistance ahead for the pair sits at 0.7060, with support eyed at 0.6910. The Kiwi, unlike the AUD/USD, fell after peaking at 0.6420 on the RBNZ rate cut and dovish comments from Wheeler, which downplayed inflation and growth expectations. The pair fell a hefty 100 pips on the event, before pulling back on an attempted test of support at 0.6250.
Upcoming Events:
- 08:00 BST – UK Halifax HPI m/m
- 12:00 BST – UK Rate Decision, MPC Rate Statement, MPC Policy Summary
- 13:30 BST – US Unemployment Claims
- 16:00 BST – Crude Oil Inventories
