Global Markets:
- Asian stock markets: Nikkei up 0.90 %, Shanghai Composite fell 0.45 %, Hang Seng rose 1.45 %, ASX rallied 2.00 %
- Commodities: Gold at $1071 (+0.60 %), Silver at $14.11 (+0.45 %), WTI Oil at $41.95 (+0.70 %), Brent Oil at $44.78 (+0.50 %)
- Rates: US 10 year yield at 2.23, UK 10 year yield at 1.83, German 10 year yield at 0.49
News & Data:
- RBA keeps cash rate on hold at 2.00% as expected
- RBA: Monetary Policy Needs To Be Accommodative
- RBA: A$ Adjusting To Significant Declines In Commodity Prices
- RBA: Judged Prospects For Economic Improvement Had Firmed
- RBA: Economy Growing At Rate Below Longer-Term Average
- RBA: Sees Inflation Consistent With Target Next 1-2 Years
- RBA: Inflation Outlook May Afford Scope For Further Easing
- China Manufacturing PMI (Nov): 49.6 (exp 49.8 prev 49.8)
- China Non-Manufacturing PMI (Nov): 53.6 (prev 53.1)
- China Caixin Manufacturing PMI (Nov): 48.6 (exp 48.3 prev 48.3)
- Japan Company Profits (YoY) Q3: 9.0% (prev 23.8%)
- Japan CapEx (YoY) Q3: 11.2% (exp 2.2% prev 5.6%)
- Australia AiG PMI (Nov): 52.5 (prev 50.2)
- Australia ANZ Roy Morgan Weekly Consumer Confidence Index (W/E 29 Nov): 112.8 (prev 114.5)
- New Zealand Terms of Trade Index (QoQ) Q3: -3.7% (exp -2.6% prev 1.3%)
- New Zealand QV House Prices (YoY) Nov: 15.0% (prev 14.0%)
- PBoC Fixes Yuan Reference Rate At 6.3973 (prev 6.3962)
Markets Update:
The Reserve Bank of Australia kept interest rates unchanged at 2.00 %, as expected. The statement was neutral and in line with previous comments. There was not much of a reaction in AUD/USD. The pair fell briefly from 0.7275 to 0.7255, but recovered quickly back to pre-RBA levels. Price action in AUD/NZD has been quite choppy in the Asian session and it fell to 1.0930 post-RBA, only to rally back to 1.0985 a few minutes later. The Kiwi Dollar has been the strongest performing currency since the new trading week started. NZD/USD rallied from 0.6515 to 0.6590 yesterday and overnight, it extended gains to 0.6647.
USD/JPY weakened in Asia and fell from 123.25 to 122.65, where it found decent support. The key support level remains 122.20, while resistance is now seen at 123.30. While the USD is on the defensive, the Euro failed to benefit from this. EUR/USD has been caught in a 1.0557-1.0590 range and interest remains low ahead of the key ECB meeting on Thursday, where the bank is expected to introduce further monetary policy easing.
Upcoming Events:
- 06:45 GMT – Swiss GDP
- 08:15 GMT – Swiss Retail Sales
- 08:45 GMT – French Manufacturing PMI
- 08:50 GMT – Italian Manufacturing PMI
- 08:55 GMT – German Manufacturing PMI
- 08:55 GMT – German Unemployment Rate
- 08:55 GMT – German Employment Change
- 09:00 GMT – Bank of England Governor Carney speaks
- 08:30 GMT – UK Manufacturing PMI
- 10:00 GMT – Euro Zone Unemployment Rate
- 13:30 GMT – Canadian GDP
- 14:45 GMT – US Markit Manufacturing PMI
- 15:00 GMT – US ISM Manufacturing PMI
- 23:30 GMT – RBA Governor Stevens speaks
