Global Markets:
- Asian stock markets: Nikkei down 0.10 %; Shanghai Composite lost 0.15 %, hang Seng gained 0.80 %, ASX 200 rose 0.15 %
- Commodities: Gold at $1236 (-0.20 %), Silver at $17.98 (-0.15 %), WTI Oil at $54.50 (+0.30 %), Brent Oil at $56.90 (+0.40 %)
- Rates: US 10-year yield at 2.45, UK 10-year yield at 1.24, German 10-year yield at 0.30
News & Data:
- Australia Wage Price Index (QoQ) Q4: 0.5% (est 0.5% prev 0.40%)
- Australia Wage Price Index (YoY) Q4: 1.9% (est 1.9% prev 1.90%)
- Australia Construction Work Done (QoQ) Q4: -0.2% (est 0.3% prev -4.90%)
- Australia Skilled Vacancies (MoM) Jan: 1.0% (prev 0.20%)
- China House Prices (YoY) Jan: 12.2% (prev 12.4%)
- PBoC Fixes USDCNY Reference Rate At 6.8830 (prev fix 6.8790 prev close 6.8810)
- Fed’s Mester: Comfortable with Interest Rates Going Higher
- Mester: Don't Wait to Wait Too Long on Tightening Rates, Gradual Path Leads to Better Outcome
- RBA Gov Lowe: Policy Balancing Risks of Low Inflation Vs High Household Debt
- Lowe: Does See Risk That Encouraging More Borrowing Would Lead to Consumer Downturn
- Lowe: Households Coping Reasonably Well with High Debt, But Is Affecting Spending
- Lowe: To Date, Satisfied That Labour Market Heading in Right Direction
- Lowe: Liaison Suggests Wages Growth Has Bottomed, But A Pick Up Is Not Imminent
Markets Update:
The US Dollar weakened slightly overnight as the market lowered its expectations for tonight's FOMC minutes. Traders are not expecting any surprises from the Federal Reserve, and it is likely that the comments will be in line with the previous one's made in the past few weeks by various FOMC members.
EUR/USD recovered from 1.0530 to 1.0555 overnight. The outlook remains negative, and resistance can now be expected in the 1.0600-20 area. Concerns about the upcoming elections in France are likely to keep the Euro under pressure.
USD/JPY fell from 113.70 to 113.30 in Asia. While it had a solid bounce off 112.55 support, the technical outlook remains negative. Only a clear break above 115 would switch techs back to positive and pave the way for a larger short squeeze.
The Australian Dollar is again struggling with 0.77 resistance. AUD/USD has been stuck in a 115 pips range this month, and given the lack of economic data out of Australia this week, further consolidation seems likely.
Upcoming Events:
- 09:00 GMT – Italian CPI
- 09:00 GMT – German IFO Business Climate
- 09:00 GMT – German IFO Business Expectations
- 09:30 GMT – UK GDP
- 10:00 GMT – Euro Zone CPI
- 13:30 GMT – Canadian Retail Sales
- 15:00 GMT – US Existing Home Sales
- 18:00 GMT – FOMC Member Powell speaks
- 19:00 GMT – FOMC Meeting Minutes
