Global Markets:
- Asian stock markets: Nikkei down 0.20 %, Shanghai Composite gained 0.60 %, Hang Seng fell 0.40 %, ASX declined 0.60 %
- Commodities: Gold at $1050 (-0.30 %), Silver at $13.93 (-0.50 %), WTI Oil at $40.20 (+0.65 %), Brent Oil at $42.75 (-0.10 %)
- Rates: US 10 year yield at 2.18, UK 10 year yield at 1.77, German 10 year yield at 0.49
News & Data:
- China Caixin Services PMI (Nov): 51.2 (prev 52.0)
- China Caixin Composite PMI (Nov): 50.5 (prev 49.9)
- Australia HIA New Home Sales (MoM) Oct: -3.0% (prev -4.0%)
- Australia Trade Balance (Oct): AUD -3305bln (exp -2600mln prev AUD -2317mln)
- Australia AiG PSI (Nov): 48.2 (prev 48.9)
- Japan Nikkei Services PMI (Nov): 51.6 (prev 52.2)
- Japan Nikkei Composite PMI (Nov): 52.3 (prev 52.3)
- South Korea GDP SA (QoQ) Q3, F: 1.3% (flash 1.2%)
- South Korea GDP (YoY) Q3, F: 2.7% (flash 2.6%)
- PBoC Fixes Yuan Reference Rate At 6.3982 (prev 6.3958)
- Saudis, Persian Gulf States Willing To Cut Oil Production If Iran, Iraq, Non-OPEC Participate – WSJ
- ECB said to downgrade inflation forecast for 2017 to 1.6% from 1.7% in macro forecasts tomorrow – BBG
Markets Update:
The US Dollar regained strength after yesterday's stronger than expected ADP employment change data. GBP/USD fell to a fresh 8-month low at 1.4894. It bounced from there, but only managed to recover to 1.4950 before heading lower again. The next notable support level is 1.4856, which is the mid-April low, followed by 1.48, the July 2013 low. USD/JPY rallied yesterday, but failed once again to sustain momentum above 123.70. It then fell back to 123.10 and spent the Asian session in a 123.10-40 range. Meanwhile, price action in EUR/USD remains very choppy ahead of the ECB meeting today. The pair fell to 1.0550 in the mid-NY session, but then rallied to 1.0625 into the NY close. In Asia, it came under slight selling pressure and eventually declined to 1.0590.
The commodity currencies are quite resilient, with AUD/USD and NZD/USD still above 0.73 and 0.66 respectively. 0.7340 & 0.7380 are the two main obstacles for AUD/USD now, while resistance in NZD/USD is seen at 0.6690 and 0.6705.
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
- 09:30 GMT – UK Services PMI
- 10:00 GMT – Euro Zone Retail Sales
- 12:45 GMT – ECB Rate Decision
- 13:30 GMT – ECB Press Conference
- 13:30 GMT – US Initial Jobless Claims
- 14:45 GMT – US Services PMI
- 15:00 GMT – Fed Chair Yellen speaks
- 15:00 GMT – US ISM Non-Manufacturing PMI
- 18:10 GMT – FOMC Member Fischer speaks
