Global Markets:
- Asian stock markets: Shanghai Composite lost 2.40 %, Hang Seng fell 2.55 %, ASX 200 declined 1.35 %
- Commodities: Gold at $1103 (+0.55 %), Silver at $13.99 (+0.50 %), WTI Oil at $32.55 (-1.90 %), Brent Oil at $33.22 (-1.00 %)
- Rates: US 10 year yield at 2.12, UK 10 year yield at 1.76, German 10 year yield at 0.51
News & Data:
- New Zealand Building Consents (MoM) Nov: 1.8% (prev 5.1%)
- PBoC Fixes Yuan Reference Rate At 6.5626 (prev 6.5636)
- China Slowdown To Hurt Export-Heavy Singapore The Most In South East Asia — BBG
- SNB Chief Jordan: Swiss Franc To Stagnate Or Weaken This Year — RTRS
- Asia shares fall sharply amid China confusion – RTRS
- China will find it tough to achieve over 6.5 percent growth over 2016-2020: state adviser – RTRS
- Oil drops over 2 percent as China slowdown weighs; market loses faith in rebound – RTRS
CFTC Positioning Data:
- EUR short 161K vs 161 short prior week
- GBP short 30K vs. 31K short prior week
- JPY long 4K vs. 17K short prior week.
- CAD short 60K vs. 61K short prior week.
- CHF long 4K vs 4K long prior week
- AUD short 14K vs 18K short prior week
- NZD short 1.5K vs flat prior week
Markets Update:
The major Asian equity markets all fell overnight, led by losses in Chinese markets. In FX, the Aussie Dollar rose slightly, while all other major currencies declined against the US Dollar. EUR/USD started the new trading day around 1.0915 and rose to a high of 1.0969 in the early session. However, it was unable to sustain momentum and fell back to 1.0930 as Hong Kong opened. Eventually, it declined to a low of 1.0908.
Despite Japanese markets being closed, there was no lack of volatility in USD/JPY. The pair opened around 116.75 in Sydney and eventually climbed back to 117.45 after the Hong Kong open. Decent resistance can be expected in the 117.80/118.00 area, while support is seen at 116.70 and 116.20.
AUD/USD bounced off the 0.6925 level and made it to 0.6980 overnight. Minor resistance can be expected at 0.70, but the main level to watch is now 0.7075.
Looking ahead, there are no relevant data releases scheduled for today, so FX traders may look again at the volatile equity markets for guidance.
Upcoming Events:
- 08:15 GMT – Swiss Retail Sales
- 09:30 GMT – Euro Zone Sentix Investor Confidence
- 13:15 GMT – Canadian Housing Starts
- 17:40 GMT – FOMC Member Lockhart speaks
The Week Ahead:
Tuesday, January 12th
- 09:30 GMT – UK Industrial Production
- 09:30 GMT – UK Manufacturing Production
- 10:30 GMT – FOMC Member Fischer speaks
- 15:00 GMT – UK NIESR GDP Estimate
- 15:00 GMT – US JOLTs Job Openings
Wednesday, January 13th
- 03:00 GMT – Chinese Trade Balance
- 07:45 GMT – French CPI
- 10:00 GMT – Euro Zone Industrial Production
- 19:00 GMT – US Federal Budget Balance
Thursday, January 14th
- 00:30 GMT – Australian Employment Change
- 00:30 GMT – Australian Unemployment Rate
- 12:00 GMT – Bank of England Rate Decision
- 12:00 GMT – Bank of England Meeting Minutes
- 12:30 GMT – ECB Meeting Minutes
- 13:30 GMT – FOMC Member Bullard speaks
- 13:30 GMT – US Initial Jobless Claims
Friday, January 15th
- 00:30 GMT – Australia Home Loans
- 10:00 GMT – Euro Zone Trade Balance
- 13:30 GMT – US Retail Sales
- 13:30 GMT – US PPI
- 13:30 GMT – US NY Empire State Manufacturing Index
- 14:15 GMT – US Industrial Production
- 14:55 GMT – US Michigan Consumer Sentiment
