Global Markets:
- Equities: Nikkei down 0.45 %, Shanghai Composite lost 0.35 %, Hang Seng declined 1.25 %; ASX 200 fell 0.90 %
- Commodities: Gold at $1266 (-0.05 %), Silver at $17.58 (-0.30 %), WTI Oil at $49.25 (+0.15 %), Brent Oil at $50.05 (+0.15 %)
- Rates: US 10 year yield at 1.81, UK 10 year yield at 1.16, UK 10 year yield at 0.09
News & Data:
- New Zealand Trade Balance (MoM) (NZD) Sep: -1.436bn (est -1.145bn, prev -1.265bn)
- New Zealand Exports (NZD) Sep: 3.47bn (est 3.53bn, prev 3.39bn)
- New Zealand Imports (NZD) Sep: 4.9bn (est 4.68bn, prev 4.65bn)
- Australia Export Price Index (QoQ) Q3: 3.5% (est 2.00%, prev 1.40%)
- Australia Import Price Index (QoQ) Q3: -1.0% (est -0.80%, prev -1.00%)
- China Industrial Profits (YoY) (Sep): 7.70% (prev 19.50%)
- China Industrial Profits (YoY) (Jan-Sep): 8.40%
- PBoC fixes yuan 6.7736 (prev fix 6.7705, prev close 6.7706)
- Asia shares extend losses, dollar off highs – RTRS
- U.S. housing, trade data boost third quarter GDP growth prospects – RTRS
- Oil lingers below $50 over doubts OPEC can coordinate output cut – RTRS
Markets Update:
The US Dollar regained some strength overnight, as both the Euro and the Australian Dollar encountered strong resistance. EUR/USD failed to reach the 1.0950 level yesterday and reversed, declining to a low of 1.0890 in Asia. Meanwhile, AUD/USD struggled once again to keep itself above 0.77 and came under pressure in the NY session. The pair eventually declined to a low of 0.7620 in Asia. Support is now seen at 0.7580, followed by 0.7520.
GBP/USD fell from 1.2250 to 1.2205, as offers proved to be thick there. GBP sentiment remains bearish, and selling interest high on any larger rallies. While the Dollar strengthened against most currencies, it failed to do so against the Yen. USD/JPY opened around 104.65 in Asia, but came under pressure after the Tokyo open and fell to 104.30. It feels a bit like a risk-off session, with stock markets down on the day and the Yen the best performing currency.
In Gold, the topside was capped at $1276 yesterday and the metal fell back to 1265 overnight. The technical outlook remains bearish overall, and key resistance is noted at $1292 and $1300/02.
Upcoming Events:
- 09:30 BST – UK GDP
- 13:30 BST – US Initial Jobless Claims
- 13:30 BST – US Durable Goods Orders
- 15:00 BST – US Pending Home Sales
