Global Markets:
- Asian stock markets: Nikkei up 2.40 %, Shanghai Composite gained 0.70 %, Hang Seng rose 1.70 %, ASX 1.40 % higher
- Commodities: Gold at $1125 (-0.20 %), Silver at $14.59 (+0.10 %), WTI Oil at $44.70 (-1.15 %), Brent Oil at $47.80 (-0.60 %)
- Rates: US 10 year yield at 2.07, UK 10 year yield at 1.75, German 10 year yield at 0.58
News & Data:
- Japan Retail Sales (MoM) Aug: 0.0% (exp 0.5% prev rev 1.4%)
- Japan Retail Sales (YoY) Aug: 0.8% (exp 1.2% prev rev 1.8%)
- Japan Industrial Production (MoM) Aug, P: -0.5% (exp 1.0% prev -0.8%)
- Japan Industrial Production (YoY) Aug, P: 0.2% (exp 1.8% prev 0.0%)
- China Westpac-MNI Consumer Sentiment (Sep): 118.2 (prev 116.5)
- China Current Account Surplus (Q2): USD 73 Bln — BBG
- PBOC Fixes Yuan Reference Rate At 6.3613 (prev 6.3660)
- Australia Building Approvals (MoM) Aug: -6.9% (exp -2.0% prev 4.2%)
- Australia Building Approvals (YoY) Aug: 5.1% (exp 7.4% prev 13.4%)
- Australia Private Sector Credit (YoY) Aug: 6.3% (exp 6.2% prev 6.1%)
- New Zealand ANZ Activity Outlook (Sep): 16.7 (prev 12.2)
- New Zealand ANZ Business Confidence (Sep): -18.9 (prev -29.1)
- New Zealand Building Permits (MoM) Aug: -4.9% (prev 20.4%)
- UK GfK Consumer Confidence (Sep): 3 (exp 5 prev 7)
- Japanese PM Advisor Takenaka: Extra Budget Should Be Followed By More BoJ Easing
- Takenaka: USDJPY In Comfortable Range of 115-120
Markets Update:
Price action in the major FX pairs remains choppy overall. EUR/USD has bounced from the 1.12 level and consolidated in a 1.1240-60 range overnight. USD/JPY rose slightly after weaker than expected Japanese data, with both retail sales and industrial production missing expectations. USD/JPY stood at 119.70 at the Sydney open and reached a high of 120.05 shortly after the data releases. Meanwhile, GBP/USD continues to struggle. It broke below the 1.5150 support level yesterday and reached a low of 1.5130. The pair has seen a mild rebound overnight, but techs remain bearish overall.
Commodity currencies recovered somewhat, with the AUD/USD back above 0.70 and NZD/USD heading slowly heading towards 0.74. The Canadian Dollar managed to rise overnight, despite falling Oil prices. USD/CAD fell from a high of 1.3460 in yesterday’s late NY session to 1.3408 just earlier.
Upcoming Events:
- 07:00 BST – German Retail Sales
- 07:45 BST – French PPI
- 08:55 BST – German Unemployment Rate
- 09:30 BST – UK GDP
- 10:00 BST – Euro Zone CPI
- 10:00 BST – Euro Zone Unemployment Rate
- 13:15 BST – US ADP Nonfarm Employment Change
- 13:30 BST – Canadian GDP
- 14:45 BST – US Chicago PMI
- 20:00 BST – Fed Chair Yellen speaks
