Global Markets:
• Asian stock markets: Nikkei down 0.10 %, Shanghai Composite lost 1.55 %, Hang Seng declined 1.00 %, ASX 200 fell 0.50 %
• Commodities: Gold at $1080.10 (+0.60 %), Silver at $13.84 (+0.65 %), WTI Oil at $30.66 (-1.75 %), Brent Oil at $30.63 (-1.19 %)
• Rates: US 10 year yield at 2.09, UK 10 year yield at 1.75, German 10 year yield at 0.52
News & Data:
• Australia Home Loans (MoM) Nov: 1.8% (exp 0.3% prev rev -0.3%)
• Australia Investment Lending (MoM) Nov: 0.7% (prev rev -5.8%)
• China M2 Money Supply (YoY): 13.3% (exp 13.6% prev 13.7%)
• China New Yuan Loans (Dec): CNY597.8 Bln (exp CNY700.0 Bln prev CNY708.9 Bln)
• PBoC Fixes Yuan Reference Rate At 6.5637 (prev 6.5616)
• BoJ Gov Kuroda: Japan Price Trend Is Improving Steadily
• Kuroda: Pace Of Wage Growth Somewhat Slow When Considering Tight Job Market & Record Corp Profits — RTRS
• Kuroda: No Plan And No Need To Change The 2% Inflation Target — BBG
• Kuroda: No Plan To Add To Monetary Easing At Present — BBG
• Kuroda: QQE Policy Has A Risk For BoJ's Finances
• Asia shares hit 3-1/2-year lows as oil resumes fall – RTRS
• Chinese central bank keeps yuan steady, stocks slightly down – RTRS
• Crude oil falls as market braces for more Iranian oil – RTRS
Markets Update:
It was another risk-off session with the JPY bid and the Aussie & Kiwi Dollar the worst performing currencies overnight. USD/JPY remains stuck in a range; after rallying to 118.30 in the early Asian session, the decline in equities pushed the pair back to 117.60. It's likely we will see a further consolidation between 117 and 118.50 in the short-term, unless US econ data surprises.
GBP/USD volatility has been low for the past few sessions and even the BoE meeting minutes and a speech from BoE Governor Carney couldn't move the Pound much. GBP/USD traded in a 1.4400-30 range overnight and key support is seen at 1.4353, while resistance is noted at 1.4450 and 1.4495.
Similar price action could be seen in EUR/USD, although the intraday volatility is somewhat higher. The pair reached 1.0940 yesterday, but failed once again to break above it. Eventually, it fell back to a low of 1.0840. In Asia, the Euro recovered slightly, as it rose to 1.0890.
The commodity currencies weakened overnight, driven lower by equities. AUD/USD fell from 0.70 to 0.6940, while NZD/USD declined from 0.6492 to 0.6428. Meanwhile, USD/CAD remains strong amid weak oil prices and is approaching the 1.44 level.
Economic Calendar:
• 08:00 GMT – Spanish CPI
• 09:00 GMT – Italian CPI
• 10:00 GMT – Euro Zone Trade Balance
• 13:30 GMT – US Retail Sales
• 13:30 GMT – US NY Empire State Manufacturing Index
• 13:30 GMT – US PPI
• 14:15 GMT – US Manufacturing Production
• 14:15 GMT – US Industrial Production
• 14:55 GMT – US Michigan Consumer Confidence
• 15:00 GMT – US Business Inventories
