Global Markets:
- Asian stock markets: Nikkei up 0.45 %, Shanghai Composite gained 0.50 %, Hang Seng fell 0.95 %, ASX rose 0.30 %
- Commodities: Gold at $1107 (+0.25 %), Silver at $14.99 (+0.10 %), WTI Oil at $45.40 (+0.50 %), Brent Oil at $48.25 (+0.25 %)
- Rates: US 10 year yield at 2.23, UK 10 year yield at 1.97, German 10 year yield at 0.61
News & Data:
- Australia AiG PCI (Oct): 52.1 (prev 51.9)
- RBA: Previous Rate Cuts, Lower A$ Supporting Economic Growth
- RBA: Australian Dollar Is Adjusting To Lower Commodity Prices
- RBA: Prospects For Economic Improvement Firmed In Recent Months
- RBA: Spare Capacity In Economy Likely For Some Time Yet
- RBA: Labour Market Improving; Jobs Growth Stronger Than Expected
- RBA: Sees 1.5%-2.5% CPI Rise in Q216 (prev 2%-3%)
- RBA: Sees 2.25% GDP Growth Year Average in Q216 (prev 2%-3%)
- PBoC Fixes Yuan Reference Rate At 6.3459 (prev 6.3381)
- Kuroda: Japan May Fall Below Potential Growth After 2017 Sales Tax Hike
Markets Update:
The main event overnight was the release of the RBA meeting minutes. The central bank said that the previous rate cuts and the lower Australian Dollar are supporting economic growth and repeated that the AUD is adjusting to lower commodity prices. All in all, there was nothing new in the statement and hence little reaction in the FX market.
It was another quiet Asian trading session, as traders are waiting for the NFP release later today. After the recent comments from Fed Chair Yellen about a possible December rate hike, this data release will be seen as even more significant. The market is expecting a 180k NFP print, while the unemployment rate is expected to remain unchanged at 5.1 %.
In the Asian session, EUR/USD traded in a 1.0878-93 range, while GBP/USD was consolidating between 1.5205 and 1.5219. USD/JPY flows were light as well, with the pair caught in a 121.53-75 range.
Upcoming Events:
- 09:30 GMT – UK Industrial Production
- 09:30 GMT – UK Manufacturing Production
- 09:30 GMT – UK Trade Balance
- 13:30 GMT – US Unemployment Rate
- 13:30 GMT – US NFP
- 13:30 GMT – US Average Hourly Earnings
- 13:30 GMT – Canadian Employment Change
- 13:30 GMT – Canadian Unemployment Rate
