Global Markets:
- Asian stock markets: Nikkei down 0.05 %, Shanghai Composite fell 0.70 %, Hang Seng lost 0.45 %, ASX 200 declined 0.30 %
- Commodities: Gold at $1164 (-0.10 %), Silver at $17.18 (-0.05 %), WTI Oil at $52.75 (-0.15 %), Brent Oil at $55.70 (-0.05 %)
- Rates: US 10-year yield at 2.46, UK 10-year yield at 1.47, German 10-year yield at 0.40
News & Data:
- China Retail Sales (YoY) Nov: 10.8% (est 10.2%, prev 10.0%)
- China Retail Sales YtD (YoY) Nov: 10.4% (est 10.3%, prev 10.3%)
- China Industrial Production (YoY) Nov: 6.2% (est 6.1%, prev 6.1%)
- China Industrial Production YtD (YoY) Nov: 6.0% (est 6.0%, prev 6.0%)
- Australian NAB Business Conditions Nov: 5 (prev 6, rev 7)
- Australian NAB Business Confidence Nov: 5 (prev 4)
- Australian Home Price Index (QoQ) Q3: 1.5% (est 2.3%, prev 2.0%)
- Australian Home Price Index (YoY) Q3: 3.5% (est 4.6%, prev 4.1%)
- Australian ANZ Roy Morgan Consumer Confidence (Weekly) Dec 11: 113.4 (prev 118.6)
- NZ Manufacturing Sales (QoQ) Q3: 2.1% (prev 2.8%)
- NZ Terms of Trade (QoQ) Q3: -1.8% (prev -2.1%)
- NZ Terms of Trade Imports (QoQ) Q3: -1.0% (prev 0.2%)
- NZ Terms of Trade Exports (QoQ) Q3: -2.8% (prev -1.9%)
- PBoC fixes yuan at 6.8934 (prev 6.9086)
- Asian shares, dollar wobble as investors brace for Fed outcome – RTRS
- Dollar steadies vs yen as Treasury yields come off highs, Fed awaited – RTRS
Markets Update:
USD/JPY ran into strong resistance above the 116 level and reversed in yesterday's NY session. In Asia, the pair remained under pressure in the early session and traded as low as 114.73, before it was able to catch a bid and recover to 115.20. Overall, the trend remains strong, but the pair is still in overbought territory on the Daily chart and a deeper retracement seems likely in the near-term.
EUR/USD bounced yesterday, which seemed more like profit-taking from shorts, given the lack of news and events. Strong resistance is noted at 1.07. GBP/USD rallied as well, from 1.2560 to 1.27, with the key level now 1.2775.
The commodity currencies are struggling are key resistance levels. AUD/USD was rejected off 0.7515, while NZD/USD failed to extend gains beyond 0.72. Meanwhile, the Canadian Dollar remains strong due to the rise in Oil prices.
Upcoming Events:
- 09:30 GMT – UK CPI
- 10:00 GMT – Euro Zone ZEW Survey
- 10:00 GMT – German ZEW Survey
- 23:30 GMT – Australia Westpac Consumer Confidence
