Global Markets:
- Asian stock markets: Nikkei up 2.65 %, Shanghai Composite gained 0.45 %, Hang Seng and ASX both rose 2.15 %
- Commodities: Gold at $1209 (-0.15 %), Silver at $15.33 (-0.34 %), WTI Oil at $31.25 (+1.95 %), Brent Oil at $34.95 (+1.40 %)
- Rates: US 10 year yield at 1.81, UK 10 year yield at 1.48, German 10 year yield at 0.27
News & Data:
- Australia Employment Change (Jan): -7.9K (exp 13.0K prev rev -0.8K) Australia Unemployment Rate (Jan): 6.0% (exp 5.8% prev 5.8%)
- Australia Participation Rate (Jan): 65.2% (exp 65.2% prev 65.1%)
- China CPI (YoY) Jan: 1.8% (exp 1.9% prev 1.6%)
- China PPI (YoY) Jan: -5.3% (exp -5.4% prev -5.9%)
- Japan Trade Balance (Jan): JPY -645.9 Bln (exp JPY – 658.5 Bln prev rev JPY 140.3 Bln)
- Japan Adj Trade Balance (Jan): JPY 119.4 Bln (exp JPY 61.6 Bln prev rev JPY 145.3 Bln)
- Japan Exports (YoY) Jan: -12.9% (exp -10.9% prev -8.0%)
- Japan Imports (YoY) Jan: -18.0% (exp -15.8% prev -18.0%)
- New Zealand ANZ Consumer Confidence Index (Feb): 119.7 (prev 121.4)
- New Zealand PPI Input (QoQ) Q4: -1.2% (prev 1.6%)
- New Zealand PPI Output (QoQ) Q4: -0.8% (prev 1.3%)
- PBoC Fixes Yuan Reference Rate At 6.5152 (prev 6.5237)
- BoJ Gov Kuroda: Market Instability Caused By China Fears — BBG
- Kuroda: Delay In Reaching Price Target Mainly Due To Oil — BBG
- Asia shares gain as crude oil bounce boosts risk assets – RTRS
- Strong U.S. industrial output bolsters growth picture – RTRS
Markets Update:
The Australian Dollar declined after weaker than expected employment data. Employment change arrived at -7.9k vs +13k expected and the unemployment rate rose to 6.0 %, while the market expected it to remain unchanged at 5.8 %. AUD/USD fell from 0.7180 to a low of 0.7134, while AUD/NZD tumbled from 1.0820 to 1.0745.
Oil rallied yesterday, which supported the Canadian Dollar and pushed USD/CAD from 1.39 in the early NY session to a low of 1.3665 in early Sydney. In the Asian session, the pair consolidated in a 1.3655-90 range.
USD/JPY fell overnight, despite rising equity markets. It started in Asia around 114.30 and came under pressure as Tokyo opened, pushing it to a low of 113.80. From there it was able to bounce and it is consolidating around 114 at the moment. Heavy resistance can be expected at 115 and around 115.50, while support is seen at 113.50.
EUR/USD has been quiet since Tuesday and has settled in a 1.11-1.12 range. GBP/USD has been under pressure as fears about a potential Brexit continue to weigh on the currency, but slightly better inflation data gave the Pound a boost yesterday and helped the pair to rise back above 1.43.
Upcoming Events:
- 07:45 GMT – French CPI
- 08:30 GMT – Swedish CPI
- 09:00 GMT – Euro Zone Current Account
- 12:30 GMT – ECB Meeting Minutes
- 13:30 GMT – US Initial Jobless Claims
- 13:30 GMT – US Philadelphia Fed Manufacturing Index
- 16:00 GMT – US Crude Oil Inventories
