Global Markets:
- Asian stock markets: Nikkei down 0.10 %, Shanghai Composite fell 0.30 %, Hang Seng rose 0.35 %, ASX 200 declined 0.40 %
- Commodities: Gold at $1225 (+0.30 %), Silver at $16.93 (+0.20 %), WTI Oil at $44.15 (+1.95 %), Brent Oil at $45.20 (+1.70 %)
- Rates: US 10 year yield at 2.21, UK 10 year yield at 1.41, German 10 year yield at 0.32
News & Data:
- Australia ANZ Roy Morgan Weekly Consumer Confidence: 118.2 (prev. 117.8)
- New Zealand Performance of Services Index Oct: 56.3 (prev. 54.2)
- PBOC sets USDCNY mid-point at 6.8495 (prev. fix 6.8291, prev close 6.8452)
- IMF on Australia: Mon Pol should remain accommodative, disinflation is expected to start reversing
- Asia stocks under pressure as dollar stays near 14-year high – RTRS
- Oil prices rise on falling shale output, renewed hopes of OPEC cut – RTRS
CFTC Positioning Data:
- EUR 129K short vs 137K short last week
- GBP 90K short vs. 83K short last week.
- JPY 32K long vs 43K long last week
- CHF 23K short vs. 20K short last week
- CAD 21K short vs. 16K short last week
- AUD 41k long vs 41K long last week
- NZD 2K long vs 1K short last week
Markets Update:
Asian stock markets are mixed today, with the Shanghai Composite and Nikkei down on the day, while the Hang Seng gained 0.35 %. In commodities, Oil managed to bounce off after the stops below $43 were cleared, and it is now back above $43. Precious metals remain under pressure amid the broad USD strength, and Gold is likely to test $1998/1200 support soon.
The Dollar extended gains against the New Zealand overnight, but fell slightly against all other major currencies. USD/JPY started the trading day around 108.40 and declined to a low of 107.80 later in the session. The pair remains well bid though, and managed to recover 108.20. Key support is seen at 107.50, while resistance now lies at 108.55 and 109.20.
EUR/USD bounced off 1.0735 and rallied to 1.0770, where the topside was capped for now. GBP/USD rose from 1.2460 to 1.2530, but quickly reversed after it ran out of momentum and finished back where it started the Asian session.
AUD/USD rose in the early Asian session, but failed at 0.7580 and declined back to 0.7540. The RBA released their meeting minutes overnight, but there was no new information for the market to consider.
Upcoming Events:
- 07:00 GMT – German GDP
- 07:45 GMT – French CPI
- 08:00 GMT – RBA Governor Lowe speaks
- 09:00 GMT – Italian GDP
- 09:30 GMT – UK CPI
- 10:00 GMT – UK Inflation Report Hearings
- 10:00 GMT – Euro Zone GDP
- 10:00 GMT – Euro Zone Trade Balance
- 10:00 GMT – Euro Zone ZEW Economic Sentiment
- 10:00 GMT – German ZEW Economic Sentiment
- 13:30 GMT – US Retail Sales
- 13:30 GMT – US NY Empire State Manufacturing Index
- 18:30 GMT – FOMC Member Fischer speaks
