Global Markets:
- Asian stock markets: Nikkei up 1.75 %, Shanghai Composite gained 0.40 %, ASX gained 0.40 %
- Commodities: Gold at $1178 (+0.05 %), Silver at $15.87 (-0.30 %), WTI Oil at $46.00 (-0.60 %), Brent Oil at $48.60 (-0.29 %)
- Rates: US 10 year yield at 2.07, UK 10 year yield at 1.86, German 10 year yield at 0.63
News & Data:
- Japan All Industry Activity Index (MoM) Aug: -0.2% (exp -0.2% prev rev -0.1%)
- PBoC Fixes Yuan Reference Rate At 6.3473 (prev 6.3614)
- Japan Exports (YoY) Sep: 0.6% (exp 3.8% prev 3.1%)
- Japan Imports (YoY) Sep: -11.1% (exp -12.0% prev -3.1%)
- Japan Trade Balance (Sep): JPY -114.5 Bln (exp JPY 87.0 Bln prev rev JPY -569.4 Bln)
Markets Update:
Another quiet session in Asia, with most major pairs little changed from the NY close. The Aussie Dollar was the best performing currency overnight, being up 0.20 % against the USD. AUD/USD started the new trading day around 0.7255 and rose to a high of 0.7275. NZD/USD failed to follow the AUD higher and consolidated in a 0.6738-58 range after the sharp decline in yesterday's NY session. The next notable support level now lies around 0.6660.
USD/CAD retraced almost all of the gains made yesterday. It fell from 1.3040 to 1.2940 in the late NY session, but managed to bounce from there and eventually reached 1.30 again. In Asia, flows were light and the pair traded within a 1.2968-90 range. USD/JPY is not moving much, but remains well bid and is slowly marching toward the 120.00 level. Resistance is then seen at 120.50/55, but the major level to watch is 121.15.
Upcoming Events:
- 00:50 BST – Japanese Trade Balance
- 15:00 BST – Bank of Canada Interest Rate Decision
- 15:00 BST – Bank of Canada Monetary Policy Statement
- 16:15 BST – Bank of Canada Governor Poloz speaks
- 18:00 BST – Bank of England Governor Carney speaks
