Global Markets:
- Asian stock markets: Nikkei down 0.35 %, Shanghai Composite lost 0.20 %, Hang Seng declined 0.90 %, ASX 200 gained 0.50 %
- Commodities: Gold at $1131 (-0.15 %), Silver at $15.92 (-0.40 %), WTI Oil at $52.65 (+0.30 %), Brent Oil at $54.65 (+0.35 %)
- Rates: US 10-year yield at 2.53, UK 10-year yield at 1.39, German 10-year yield at 0.25
News & Data:
- New Zealand GDP (QoQ) Q3: 1.1% (est 0.9%, prev 0.9%, rev 0.7%)
- New Zealand GDP (YoY) Q3: 3.5% (est 3.7%, prev 3.6%, rev 3.4%)
- New Zealand M3 Money Supply (YoY) Nov: 5.9% (prev 7.1%)
- UK GfK Consumer Confidence Dec: -7 (est -8, prev -8)
- PBoC fixes yuan midpoint at 6.9435 (prev 6.9489)
- South Korean Central Bank Chief: BoK still has room to support economy — RTRS
- Asian shares slip in holiday-thinned trade, focus turns to U.S. data
- Oil prices rise on weaker dollar, optimism on output cuts – RTRS
Markets Update:
The main event overnight was the release of New Zealand GDP data. New Zealand's economy grew 1.1 % quarter-on-quarter, higher than the 0.9 % expected, but the year-on-year number came in at 3.5 %, lower than the 3.7 % anticipated by the market. The reaction was mixed. NZD/USD rallied from 0.6895 to 0.6920 immediately after the release, but quickly retraced gains again. After the Tokyo open, the NZD caught a bid again and extended gains to 0.6925.
The Australian Dollar started the Asian session around 0.7225, but was able to recover to 0.7255 later in the session. Meanwhile, the Canadian Dollar remains under pressure. USD/CAD broke above 1.3430 resistance overnight, and a test of 1.3540 resistance seems likely in the near-term.
EUR/USD consolidated in a 1.0425-45 range overnight, while GBP/USD was stuck between 1.2345 and 1.2375. USD/JPY flows were light as well, and the pair traded within a 117.40-70 range in Asia.
Looking ahead, there are no important data releases in the upcoming EU session, but plenty of events scheduled for today’s NY session, with the main one’s being US GDP and Canadian CPI.
Upcoming Events:
- 13:30 GMT – US Durable Goods Orders
- 13:30 GMT – US GDP
- 13:30 GMT – US Initial Jobless Claims
- 13:30 GMT – Canadian CPI
- 13:30 GMT – Canadian Retail Sales
- 14:00 GMT – US House Price Index
- 15:00 GMT – US Personal Income
- 15:00 GMT – US Personal Spending
- 15:00 GMT – US Core PCE Price Index
