Global Markets:
- Asian stock markets: Nikkei up 1.20 %, Shanghai Composite fell 0.25 %, Hang Seng gained 0.45 %, ASX 200 rose 0.05 %
- Commodities: Gold at $1230.95 (+0.55 %), Silver at $17.15 (+0.65 %), WTI Oil at $46.00 (+0.45 %), Brent Oil at $47.20 (+0.50 %)
- Rates: US 10 year yield at 2.22, UK 10 year yield at 1.37, German 10 year yield at 0.31
News & Data:
- Australia Wage Price Index (QoQ) Q3: 0.4% (est. 0.50%, prev. 0.50%)
- Australia Wage Price Index (YoY) Q3: 1.9% (est. 2.00%, prev. 2.10%)
- Australia New Motor Vehicle Sales (MoM) Oct: -2.4% (prev. 2.50%)
- Australia Westpac Leading Index (MoM) Oct: 0.06% (prev. 0.08%)
- Japan Housing Loans (YoY) Q3: 2.7% (prev. 2.4%)
- PBOC set USDCNY mid-point at 6.8592 (prev. fix 6.8495, prev close 6.8565)
- Asia shares win reprieve as bond rout pauses for now – RTRS
- Strong U.S. retail sales reinforce December interest rate hike – RTRS
- Oil prices fall after industry report shows stock build – RTRS
Markets Update:
Overnight, the Dollar weakened slightly against the other major currencies. The market is now pricing in almost a 100 % chance of a rate hike next month, so it is questionable how much the Dollar rally can extend in the short-term.
EUR/USD opened around 1.0720 in Asia and rose to a high of 1.0760, while Cable rallied from 1.2435 to 1.2480. USD/JPY ran into decent offers at 109.30 and retraced to 108.80 overnight, but remains well bid. A test of 110 seems likely, although the charts are suggesting the pair is heavily overbought in the short-term.
The commodity currencies are slightly down on the day. AUD/USD fell from 0.7570 to 0.7540, while NZD/USD declined from 0.7115 to 0.7080. Meanwhile, the Canadian Dollar continues to show strength amid a recovery in Oil prices. USD/CAD fell from 1.3460 to 1.3425 in Asia and is down 150 pips since the trading week started. Support is now seen at 1.3350, followed by 1.3260.
Upcoming Events:
- 08:00 GMT – FOMC Member Bullard speaks
- 09:30 GMT – UK Unemployment Rate
- 09:30 GMT – UK Claimant Count Change
- 09:30 GMT – UK Average Earnings
- 10:00 GMT – Swiss ZEW Expectations
- 13:30 GMT – US PPI
- 14:15 GMT – US Industrial Production
- 14:15 GMT – US Manufacturing Production
- 15:30 GMT – US Crude Oil Inventories
- 22:30 GMT – FOMC Member Harker speaks
