Global Markets:
- Asian stock markets: Nikkei down 2.20 %; Shanghai Composite gained 0.30 %, Hang Seng fell 1.00 %, ASX rose 1.10 %
- Commodities: Gold at $1134 (+0.20 %), Silver at $14.83 (+0.30 %), WTI Oil at $44.85 (+0.85 %), Brent Oil at $48.08 (+0.45 %)
- Rates: US 10 year yield at 2.14, UK 10 year yield at 1.79, German 10 year yield at 1.79
News & Data:
- Japan All Industry Activity Index (MoM) Jul: 0.2% (exp 0.0% prev 0.3%)
- Japan Nikkei Manufacturing PMI (Sep, P): 50.9 (exp 51.2 prev 51.7)
- New Zealand Trade Balance (Aug): NZD -1.035 Bln (exp NZD -850 Mln prev NZD -649 Mln)
- PBOC Fixes Yuan Reference Rate At 6.3791 (prev 6.3773)
- Asia subdued amid lingering global growth woes, euro steady – RTRS
- Markets overlook U.S. strength, overreact to China: Fed's Lockhart – RTRS
- Gloomy PMI data weigh on Japan equities – FT
Markets Update:
The US Dollar weakened slightly in the overnight trading session. EUR/USD found good support ahead of the 1.11 level in yesterday's NY session and was able to bounce from there, reaching a high of 1.1195 in Asia. GBP/USD is still struggling after the break of 1.5330 support. It reached a low of 1.5220 yesterday and is currently consolidating around 1.5255. A test of the 1.5160 support level (last week's low) seems likely.
Japanese markets opened after being closed for three days and traders were offering USD/JPY immediately at the Tokyo open. The pair declined from 120.35 to a low of 119.85. While the USD has been overall strong this week, it was struggling to make gains against the Yen amid the risk-off sentiment in global equity markets.
AUD/USD broke sub-0.70 and won't any major support until 0.6905, the current yearly low. NZD/USD is doing slightly better as it found solid support around the 0.6240 level and is approaching 0.63 now.
Upcoming Events:
- 07:00 BST – German Consumer Climate
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- 09:00 BST – German IFO Business Climate Index
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