Global Markets:
- Asian stock markets: Nikkei up 0.90 %, Shanghai Composite gained 2.85 %, Hang Seng rose 1.70 %, ASX 200 rallied 0.95 %
- Commodities: Gold at $1194 (-3.65 %), Silver at $15.17 (-3.95 %), WTI Oil at $30.75 (+4.45 %), Brent Oil at $34.65 (+3.85 %)
- Rates: US 10 year yield at 1.79, UK 10 year yield at 1.43, German 10 year yield at 0.24
News & Data:
- New Zealand 2 Year Inflation Expectations (Q1): 1.63% (prev 1.85%)
- New Zealand Retail Sales Ex-Inflation (QoQ) Q4: 1.2% (exp 1.5% prev 1.6%)
- Australia ANZ Roy Morgan Weekly Consumer Confidence Index (W/E 14 Feb): 113.6 (prev 111.4)
- China New Yuan Loans (CNY) Jan: CNY 2510.00 Bln (exp CNY 1900.0 Bln prev CNY 597.8 Bln)
- China Money Supply M2 (YoY) Jan: 14.0% (exp 13.5% prev 13.3%)
- South Korea Trade Balance (Jan, F): USD 5.20 Bln (flash USD 5.30 Bln)
- Bank of Korea Keeps Its Benchmark Repo Rate Unchanged At 1.50% As Expected
- PBoC Fixes Yuan Reference Rate At 6.5130 (prev 6.5118)
- Japan Ready To Work With G7 To Soothe Markets — RTRS
- Japanese FinMin Aso: Negative Rate will Be A Plus For Consumption & Investment, Hopes Will Lead To Expansion — BBG
- Japanese Ecomin Ishihara: Need Time To Assess Effect Of BoJ Policy
- RBA Meeting Minutes: Low Inflation May Provide Scope To Ease If Appropriate
- RBA: Lower A$ To Exert Some Upward Pressure On Inflation
- RBA: Reasonable Prospects For Growth To Increase Gradually
- RBA: Very Low Rates Supporting Household Consumption Growth
- RBA: Stronger Jobs Growth Had Lowered Unemployment Forecast By 0.5%, Must Look If Effects Last
- RBA: China Has Scope To Respond If Economy Weaker Than Expected, To Slow Further, Markets Not Sure Of Beijing’s Ability
Markets Update:
USD/JPY extended gains overnight and led to broad USD strength in markets. The pair started the new trading day around 114.40 and rose to a high of 114.87 as equities rallied. The Euro, which was benefiting from the risk-off sentiment, is retracing some of the gains from last week and could test the 1.11 level soon. The key area to watch is 1.1050/60 and break below would suggest the topside has been capped at 1.1375 for now and that a move back towards 1.09 is likely.
The Australian Dollar is holding well despite broad USD strength, but failed to break above the 0.7180 level once again. In Asia, it came under pressure and AUD/USD fell from 0.7175 to 0.7130. Meanwhile, the New Zealand Dollar was the worst performing currency overnight, as it tumbled from 0.6675 to a low of 0.6590 amid lower inflation expectations.
Upcoming Events:
- 09:00 GMT – Italian Trade Balance
- 09:00 GMT – Norwegian GDP
- 09:30 GMT – UK CPI
- 10:00 GMT – German ZEW Economic Sentiment
- 10:00 GMT – Euro Zone ZEW Economic Sentiment
- 13:30 GMT – US NY Empire State Manufacturing Index
- 15:00 GMT – US NAHB Housing Market Index
