Global Markets:
- Asian stock markets: Nikkei down 2.85 %, Shanghai Composite lost 1.40 %, Hang Seng declined 4.00 %, ASX 200 fell 1.30 %
- Commodities: Gold at $1092.40 (+0.30 %), Silver at $14.04 (-0.60 %), WTI Oil at $28.88 (-2.35 %), Brent Oil at $28.29 (-1.85 %)
- Rates: US 10 year yield at 2.01, UK 10 year yield at 1.69, German 10 year yield at 0.56
News & Data:
- New Zealand CPI (QoQ) Q4: -0.5% (exp -0.2% prev 0.3%)
- New Zealand CPI (YoY) Q4: 0.1% (exp 0.3% prev 0.4%)
- New Zealand REINZ House Sales (YoY) Dec: 3.5% (prev 8.5%)
- Australia Westpac Consumer Confidence Index (Jan): 97.3 (prev 100.8)
- Hong Kong Unemployment Rate SA (Dec): 3.3% (exp 3.3% prev 3.3%)
- PBoC Fixes Yuan Reference Rate At 6.5578 (prev 6.5596)
- Asia stocks hit four-year trough as oil spirals lower – RTRS
- China shares fall as oil slides, outweighing stimulus hopes – RTRS
- Dollar retreats as crude oil resumes descent, yen gains – RTRS
Markets Update:
Asian stock markets fell overnight, as oil posted fresh multi-year lows. Risk aversion led to a retracement in USD/JPY, which fell from 117.65 at the session open to a low of 116.90. Support is now seen at 116.50, last week's low. Commodity currencies also declined overnight, with AUD/USD falling to a low of 0.6860 after trading as high as 0.6955 yesterday. Initial support is seen at 0.6830 and a break below would then suggest a move to 0.67.
The New Zealand Dollar fell sharply after lower than expected CPI data. NZD/USD tumbled from 0.6480 to 0.64 and eventually extended losses to 0.6365. Meanwhile, lower oil prices benefited the USD/CAD, which rallied to 1.4643 in Asia, up 200 pips from yesterday's NY open.
The Pound came under pressure after dovish comments from BoE Governor Carney and GBP/USD hit a fresh multi-year low at 1.4129. The Euro however, benefited from the risk-off sentiment and rallied to 1.0955. Initial resistance is seen at 1.0980 and 1.10.
Upcoming Events:
- 07:00 GMT – German PPI
- 09:30 GMT – UK Claimant Count Change
- 09:30 GMT – UK Unemployment Rate
- 09:30 GMT – UK Average Earnings
- 13:30 GMT – US Building Permits
- 13:30 GMT – US CPI
- 13:30 GMT – US Housing Starts
- 13:30 GMT – Canadian Manufacturing Sales
- 13:30 GMT – Canadian Wholesale Sales
- 15:00 GMT – Bank of Canada Interest Rate Decision
- 15:00 GMT – Bank of Canada Monetary Policy Report
- 16:15 GMT – Bank of Canada Governor Poloz speaks
- 21:30 GMT – New Zealand Business NZ PMI
