Global Markets:
- Asian stock markets: Nikkei up 0.40 %, Shanghai Composite gained 0.20 %, Hang Seng fell 0.05 %, ASX rose 0.35 %
- Commodities: Gold at $1066 (-0.20 %), Silver at $14.10 (-0.45 %), WTI Oil at $41.00 (+0.80 %), Brent Oil at $43.98 (+0.60 %)
- Rates: US 10 year yield at 2.26, UK 10 year yield at 1.96, German 10 year yield at 0.52
News & Data:
- Australia Wage Price Index (QoQ) Q3: 0.6% (exp 0.6% prev 0.6%)
- Australia Wage Price Index (YoY) Q3: 2.3% (exp 2.3% prev 2.3%)
- Australia Conference Board Leading Index (MoM) Sep: -0.1% (prev -0.4%)
- PBoC Fixes Yuan Reference Rate At 6.3796 (prev 6.3740)
- Asian shares slip, copper tumbles as dollar shines – RTRS
- Oil prices edge up on reports of falling inventories, higher refinery runs – RTRS
- Dollar sits atop large gains, euro dogged by ECB easing expectations – RTRS
Markets Update:
EUR/USD opened around 1.0640 in Sydney and spent most of the session consolidating between 1.0630 and 1.0650. Low risk appetite and expectations of further easing by the ECB next month are keeping the Euro under pressure. Techs suggest that further losses are ahead, with little support seen until 1.0520. The British Pound remains fairly resilient, despite broad USD strength. Inflation data yesterday arrived in line with expectations and traders are now anticipating the latest UK retail sales numbers, which will be published tomorrow. Key resistance still lies at 1.5240, while support is seen at 1.5150.
USD/JPY didn't move much overnight. The pair started the new trading day around 123.40 and was caught in a 123.27-47 range in Asia. Intraday support is seen at 123.00 and 122.60, while the major resistance level remains 123.60.AUD/USD rallied to 0.7140 yesterday, but ran out of steam and fell back below 0.71 at the Tokyo open. 0.7070 support is holding for now, but it looks fragile. Next support then seen at 0.7015.
Upcoming Events:
- 10:00 GMT – Swiss ZEW Expectations
- 13:30 GMT – US Building Permits
- 13:30 GMT – US Housing Starts
- 19:00 GMT – FOMC Meeting Minutes
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