Global Markets:
- Asian stock markets: Nikkei down 1.20 %, Shanghai Composite fell 0.20 %, Hang Seng lost 0.95 %, ASX 200 declined 1.50 %
- Commodities: Gold at $1247 (+0.15 %), Silver at $16.65 (+0.35 %), WTI Oil at $45.20 (+0.60 %), Brent Oil at $47.90 (+0.60 %)
- Rates: US 10-year yield at 2.28, UK 10-year yield at 1.25, German 10-year yield at 0.44
News & Data:
- China Manufacturing PMI 51.7 vs 51.0 expected
- China Non-Manufacturing PMI 54.9 vs 54.5 previous
- Australia Housing Credit 0.6 % vs 0.5 % previous
- Australia Private Sector Credit 0.4 % vs 0.4 % expected
- Japan Unemployment Rate 3.1 % vs 2.8 % expected
- Japan Industrial Production -3.3 % vs -3.2 % expected
- Japan CPI 0.4 % vs 0.5 % expected
- Japan Household Spending 0.7 % vs 0.2 % expected
- New Zealand Building Consents 7.0 % vs -7.4 % previous
- Dollar sulky on hawkish central banks, Asia stocks join global slump – RTRS
Markets Update:
The Dollar weakness continues. EUR/USD rose to 1.1445 overnight, while GBP/USD is slowly approaching 1.3050 resistance. Meanwhile, USD/JPY came under pressure and declined to 111.70 in Asia. It was not just broad USD weakness that brought the pair under pressure. A decline in global equity markets added to the negative sentiment. Support is seen at 111.50, followed by 111.
AUD/USD broke above 0.77 resistance, but momentum slowed down in Asia. Nevertheless, the outlook remains positive and the pair is likely to test 0.7780 resistance soon.
USD/CAD is not getting any rest. It declined to 1.2970 in Asia and is down 350 pips in the past seven trading days. USD/CAD looks heavily oversold in the short-term, and it is likely that we will see a bounce before the downtrend continues. Resistance is noted at 1.3030 and strong at 1.3130/40. Today at 13:30 BST, Canada will publish its GDP numbers, which should lead to decent volatility in the CAD pairs.
Upcoming Events:
07:00 BST – German Retail Sales
08:55 BST – German Unemployment Rate
09:30 BST – UK GDP
10:00 BST – Euro Zone CPI
13:30 BST – Canadian GDP
13:30 BST – US Personal Income
13:30 BST – US Personal Spending
14:45 BST – US Chicago PMI
15:00 BST – US Michigan Consumer Sentiment
