Global Markets:
- Asian stock markets: Nikkei up 1.10 %, Shanghai Composite gained 2.70 %, Hang Seng rose 2.30 %, ASX fell 1.00 %
- Commodities: Gold at $1109 (+0.30 %), Silver at $15.07 (+0.08 %), WTI Oil at $46.44 (+0.25 %), Brent Oil at $48.73 (-0.10 %)
- Rates: US 10 year yield at 2.23, UK 10 year yield at 1.99, German 10 year yield at 0.60
News & Data:
- PBoC Fixes Yuan Reference Rate At 6.3381 (prev 6.3343)
- RBA Gov Stevens: Potential Growth Rate Assumption Lowered A Little Bit — BBG
- Stevens: Accommodative Policy Likely Appropriate For Some Time – Improvement In Productivity 'Is The Main Game'
- Stevens: Any Policy Change Would Be An Easing, Not A Tightening
- Stevens: China Growth Rate Currently And In Future Is Uncertain
- Stevens: CPI Inflation Is 'Clearly No Impediment To Easing'
Markets Update:
There were no data releases overnight, so it was rather quiet in the FX market. EURUSD started around 1.0860 in Sydney and spent most of the session consolidating between 1.0860 and 1.0875. The pair found some support at the August 2015 low at 1.0840, but the key level to watch now is 1.0805, which is the July and late May low. A clear break below that level would pave the way for a test of the current yearly low at 1.0460. GBP/USD traded in a 1.5378-95 range in Asia. After gaining some decent upside momentum on Tuesday, the pair ran out of steam ahead of the 1.55 level and is back in the midst of the range. It found once again support at 1.5360, but a break beneath would suggest another test of 1.53 and eventually 1.5240.
USD/JPY rallied in yesterday's NY session after better than expected US economic data. Overnight, it gave up some of the gains, but remained relatively well bid below 121.50. The Aussie and New Zealand Dollar recovered somewhat, after being under pressure the previous few trading sessions. AUD/USD bounced off the 0.7125 level and rose to a high of 0.7155, while NZD/USD was able to reach 0.66.
Upcoming Events:
- 07:00 GMT – German Factory Orders
- 08:15 GMT – Swiss CPI
- 09:00 GMT – Norwegian CB Rate Decision
- 10:00 GMT – Euro Zone Retail Sales
- 12:00 GMT – Bank of England Rate Decision
- 13:30 GMT – US Initial Jobless Claims
- 15:00 GMT – Canadian Ivey PMI
