Global Markets:
- Asian stock markets: Nikkei down 1.50 %, Shanghai Composite gained 0.05 %, Hang Seng lost 0.10 %, ASX 200 fell 0.90 %
- Commodities: Gold at $1300.65 (-0.20 %), Silver at $18.31 (-0.60 %), WTI Oil at $44.80 (+0.35 %), Brent Oil at $46.50 (+0.40 %)
- Rates: US 10 year yield at 1.81, UK 10 year yield at 1.21, German 10 year yield at 0.16
News & Data:
- Japan Nikkei Services PMI (Oct): 50.5 (prev 48.2)
- Japan Nikkei Composite PMI (Oct): 51.3 (prev 48.9)
- Australia Retail Sales (MoM) (Sep): 0.60% (est 0.40%, prev 0.40%)
- Australia Retail Trade (QoQ) (Q3): -0.10% (est 0.40%, prev 0.40%)
- PBOC fixes yuan at 6.7514 (vs prev fix 6.7491, prev close 6.7625)
- U.S. employment growth, wages seen picking up in October – RTRS
- Asian shares slip, dollar nurses losses as U.S. election looms – RTRS
Markets Update:
The Dollar bounced slightly overnight, ahead of today's US employment data release at 1230 GMT. USD/JPY started the day around 102.90 and rose to a high of 103.30 later in the session. Resistance is seen at 103.80, and a break above could likely lead to a bit of a short squeeze. Further to the topside, USD/JPY is likely to encounter significant resistance around the former support area at 104.40.
Commodity currencies came under pressure in Asia. AUD/USD fell from 0.7695 to a low of 0.7665 so far. The RBA released its meeting minutes overnight, although it did not have much of an impact on markets. NZD/USD declined from 0.7340 to 0.73, and is currently consolidating around the big figure. Support is expected at 0.7280, followed by 0.72.
Euro and Pound didn't move much. EUR/USD consolidated in a 1.1085-1.1110 range, while Cable was stuck between 1.2450 and 1.2480. The Pound rallied sharply in yesterday's EU session as the UK high court decided that parliament must vote on the Brexit decision.
Upcoming Events:
- 08:45 GMT – Italian Services PMI
- 08:50 GMT – French Services PMI
- 08:55 GMT – German Services PMI
- 09:00 GMT – Euro Zone Services PMI
- 10:00 GMT – Euro Zone PPI
- 12:30 GMT – US NFP
- 12:30 GMT – US Unemployment Rate
- 12:30 GMT – US Average Hourly Earnings
- 12:30 GMT – Canadian Trade Balance
- 12:30 GMT – Canadian Employment Change
- 12:30 GMT – Canadian Unemployment Rate
- 14:00 GMT – Canadian Ivey PMI
- 19:30 GMT – US CFTC Positioning Data
