Global Markets:
- Asian stock markets: Nikkei down 0.40 %, Shanghai Composite lost 0.15 %, Hang Seng rose 0.35 %, ASX 200 gained 0.02 %
- Commodities: Gold at $1177 (-0.35 %), Silver at $16.40 (-1.40 %), WTI Oil at $53.75 (-0.05 %), Brent Oil at $56.90 (-0.05 %)
- Rates: US 10-year yield at 2.36, UK 10-year yield at 1.31, German 10-year yield at 0.25
News & Data:
- Japan Real Cash Earnings (Nov): -0.20% (est 0.00%, prev 0.00%)
- Japan Labour Cash Earnings (YoY) (Nov): 0.20% (est 0.20%, prev 0.10%)
- Australia Trade Balance (A$) (Nov): +1.243bn (est -0.550bn, prev rev to -1.119bn from -1.541bn)
- Australia Exports (MoM) (Nov): 8.0% (prev 1.00%)
- Australia Imports (MoM) (Nov): 0.0% (prev 2.00%)
- Goldman Sachs forecasts USDCNY will rise to 7.3 by end-2017
- PBOC sets USD/CNY central rate at 6.8668 (vs. yesterday at 6.9307)
Markets Update:
The Dollar regained some strength overnight. USD/JPY rallied back above 116 following a strong bounce off 115.05 support. Meanwhile, resistance above 1.06 proved to be too strong in EUR/USD, and it fell back to 1.0575. AUD/USD declined from 0.7350 to 0.7315, while NZD/USD retraced from 0.7045 to 0.7005.
FX traders remain focused on the Chinese Yuan, which saw some sharp moves in the past few trading days amid a short squeeze. USD/CNH fell from 6.9870 to 6.78 in only two days, but was able to recover slightly overnight. It rose from 6.7860 to 6.84.
Upcoming Events:
- 07:00 GMT – German Retail Sales
- 07:45 GMT – French Trade Balance
- 10:00 GMT – Euro Zone Retail Sales
- 10:00 GMT – Euro Zone Consumer Confidence
- 10:00 GMT – Euro Zone Business Climate
- 13:30 GMT – US Nonfarm Payrolls
- 13:30 GMT – US Unemployment Rate
- 13:30 GMT – US Trade Balance
- 13:30 GMT – US Average Hourly Earnings
- 13:30 GMT – Canadian Unemployment Rate
- 13:30 GMT – Canadian Employment Change
- 13:30 GMT – Canadian Trade Balance
- 15:00 GMT – US Factory Orders
- 15:00 GMT – Canadian Ivey PMI
- 20:30 GMT – US CFTC Positioning Data
