Global Markets:
- Asian stock markets: Nikkei up 0.10 %, Shanghai Composite lost 0.35 %, Hang Seng fell 0.75 %, ASX 200 declined 1.45 %
- Commodities: Gold at $1275 (+0.15 %), Silver at $17.81 (+0.20 %), WTI Oil at $49.30 (-1.40 %), Brent Oil at $50.20 (-1.20 %)
- Rates: US 10 year yield at 1.75, UK 10 year yield at 1.10, German 10 year yield at 0.03
News & Data:
- Australia CPI (QoQ) Q3: 0.70% (est 0.50%, prev 0.40%)
- Australia CPI (YoY) Q3: 1.30% (est 1.10%, prev 1.00%)
- Australia Trimmed Mean CPI (QoQ) Q3: 0.40% (est 0.40%, prev 0.50%)
- Australia Trimmed Mean CPI (YoY) Q3: 1.70% (est 1.70%, prev 1.70%)
- Australia Weighted Median CPI (QoQ) Q3: 0.30% (est 0.40%, prev 0.40%)
- Australia Weighted Median CPI (YoY) Q3: 1.30% (est 1.40%, prev 1.30%)
- China Westpac-MNI Consumer Sentiment Oct: 117.1 (prev 115.2)
- Japan PPI Services (YoY) Sep: 0.30% (est 0.20%, prev 0.20%)
- PBOC fixes yuan 6.7705 (prev fix 6.7744, prev close 6.7795)
- China tightens capital controls amid yuan's continuing slide – Nikkei
- Asia stocks slide on Wall Street losses, oil drops on inventory rise – RTRS
- Wall Street slips on earnings; Apple falls late after results – RTRS
- Dollar underpinned by Fed rate expectations, Aussie shines – RTRS
Markets Update:
The Australian Dollar rallied in Asia, following a stronger than expected Australian CPI print. Inflation rose 0.70 % q/q and 1.30 % y/y, while the market was anticipating 0.50 % and 1.10 % respectively. AUD/USD rose from 0.7630 to 0.7710 following the release, but ran out of momentum above 0.77 and fell back to 0.7680 later in the session. Resistance is now seen at 0.7735 (last week's high), followed by 0.7760 (early August high), while support is noted at 0.7650 and 0.7585. The New Zealand Dollar declined as AUD/NZD flows weighed on it; it reached a low of 0.7145, down 30 pips from the open.
USD/JPY ran into decent offers ahead of the 105 level and reversed overnight. The pair traded as low as 104.00 in Asia, but good support is seen at 103.50 and 103.20.
EUR/USD and GBP/USD were quiet as usual, with the former trading in a 1.0885-90 range, while Cable consolidated between 1.2160 and 1.2190. GBP/USD traded as low as 1.2090 yesterday, during the speech by BoE Governor Carney, but then reversed sharply as the market realized that the BoE is not in a hurry to cut rates soon.
Upcoming Events:
- 07:00 BST – German Consumer Climate
- 09:00 BST – Italian Retail Sales
- 14:45 BST – US Services PMI
- 15:00 BST – US New Home Sales
- 22:45 BST – New Zealand Trade Balance
