Global Markets:
- Asian stock markets: Nikkei down 0.75 %, Shanghai Composite fell 1.80 %, Hang Seng declined 0.80 %, ASX gained 0.05 %
- Commodities: Gold at $1164 (-0.20 %), Silver at $15.83 (-0.50 %), WTI Oil at $43.45 (-1.20 %), Brent Oil at $47.20 (-0.50 %)
- Rates: US 10 year yield at 2.04, UK 10 year yield at 1.82, German 10 year yield at 0.49
News & Data:
- New Zealand Trade Balance (Sep): NZD -1222mln (exp NZD -825mln prev NZD -1035mln)
- Japan Services PPI (YoY) Sep: 0.6% (exp 0.6% prev rev 0.8%)
- China Industrial Profits (YoY) Sep: -0.1% (prev -8.8%)
- Australia ANZ Roy Morgan Weekly Consumer Confidence Index (W/E 25 Oct): 113.4 (prev 113.3)
- PBoC Fixes Yuan Reference Rate At 6.3494 (prev 6.3549)
- Singapore PM Lee: Singapore Must Prepare For Economic Slowdown — Straits Times
Markets Update:
The US Dollar weakened yesterday, following worse than expected New Home Sales data. In the Asian session, the USD remained offered, while the Japanese Yen rallied. The Yen benefited from a slight shift in risk appetite and declining stock markets. The Nikkei fell 0.80 % so far, while the Shanghai Composite lost almost 2 % on the day.
USD/JPY was trading around 121.00 at the Sydney open and came under pressure as Japanese markets opened. It eventually fell to a low of 120.48 and next support is seen at 120.20, which is last Friday's low. EUR/USD recovered somewhat after 1.10 support held. It reached 1.1070 overnight, but selling interest remains high amid renewed EUR-negative sentiment after the recent ECB meeting. Strong resistance is seen at 1.1140 and 1.1185.
AUD/USD has been well bid yesterday, but ran out of steam around 0.7270. Overnight, it fell to a low of 0.7227 and the next notable support level lies at 0.7180, which is last week's low. Similar price action in NZD/USD, which struggled at 0.68 and fell back to 0.6770.
Upcoming Events:
- 09:30 GMT – UK GDP
- 12:30 GMT – US Durable Goods Orders
- 12:55 GMT – US Redbook
- 13:00 GMT – US HPI Composite
- 13:45 GMT – US Services PMI
- 14:00 GMT – US CB Consumer Confidence
- 14:00 GMT – US Richmond Manufacturing PMI
