Global Markets:
- Asian stock markets: Nikkei down 0.65 %, Shanghai Composite fell 0.50 %, Hang Seng rose 0.15 %, ASX 200 rallied 0.65 %
- Commodities: Gold at $1121 (+0.50 %), Silver at $14.44 (-0.20 %), WTI Oil at $31.88 (-1.30 %), Brent Oil at $33.60 (-0.95 %)
- Rates: US 10 year yield at 2.01, UK 10 year yield at 1.71, German 10 year yield at 0.45
News & Data:
- FOMC keeps target range for FFR unchanged at 0.25%-0.50%
- FOMC: Closely monitoring global economic and financial developments
- FOMC: Economy warrants only gradual rate rises
- RBNZ maintains Official Cash Rate at 2.50%, as expected
- RBNZ: Further easing may be needed over coming year
- RBNZ: Further NZD depreciation would be appropriate
- New Zealand Trade Balance (Dec): NZD -53bln (exp NZD -131mln prev NZD -779mln)
- Japan Retail Sales (YoY) Dec: -1.1% (exp 0.2% prev rev -1.1%)
- Japan Retail Sales (MoM) Dec: -0.2% (exp 1.0% prev rev 2.5%)
- Australia Import Price Index (QoQ) Q4: -0.3% (exp -0.8% prev 1.4%)
- Australia Export Price Index (QoQ) Q4: -5.4% (exp -3.9% prev 0.0%)
- Singapore Unemployment Rate SA (Q4, P): 1.9% (exp 2.0% prev 2.0%)
- PBoC Fixes Yuan Reference Rate At 6.5528 (prev 6.5533)
- Saudi’s Al-Saadoun: Investment Continues To Keep Oil Fields Producing, Oil Markets Will Balance In 2016 — BBG
- ADNOC: Abu Dhabi To Boost Oil Output To 3.5mln Bpd By End-2017 — BBG
Markets Update:
The RBNZ left rates unchanged as expected, but dovish comments from the central bank have sent the New Zealand Dollar lower. The bank stated that further easing may be needed over the coming year and that a lower NZD would be appropriate. NZD/USD fell from 0.6510 to 0.6420 after the statement was released, while AUD/NZD rallied from 1.0830 to 1.0910 and eventually extended gains to 1.0910.
The FOMC was a non-event. The Fed kept rates unchanged, as expected, but did not provide much new information in its statement, so the impact on the FX market was limited. EUR/USD finished the day around 1.09 and in Asia it consolidated in a 1.0883-1.0907 range. GBP/USD fell sharply yesterday, as it failed a third time at 1.4350 resistance. Support is now seen at 1.4170.
USD/JPY briefly rose above 109.00 yesterday, but failed to sustain momentum and eventually fell back to 118.50. In Asia, the pair recovered slightly and rose to 118.90.
Upcoming Events:
- 13:00 GMT – German CPI
- 13:30 GMT – US Durable Goods Orders
- 13:30 GMT – US Initial Jobless Claims
- 15:00 GMT – US Pending Home Sales
- 23:30 GMT – Japan Unemployment Rate
- 23:30 GMT – Japan CPI
- 23:30 GMT – Japan Household Spending
- 23:50 GMT – Japan Industrial Production
