Global Markets:
- Asian stock markets: Nikkei up 0.15 %, Shanghai Composite gained 1.65 %, Hang Seng and ASX both rose 0.80 %
- Commodities: Gold at $1089 (-0.15 %), Silver at $13.95 (+0.35 %), WTI Oil at $30.40 (-0.10 %), Brent Oil at $28.96 (+0.80 %)
- Rates: US 10 year yield at 2.06, UK 10 year yield at 1.69, German 10 year yield at 0.48
News & Data:
- China GDP SA (QoQ) Q4: 1.6% (exp 1.8% prev 1.8%)
- China GDP (YoY) Q4: 6.8% (exp 6.9% prev 6.9%)
- China GDP YtD (YoY) Q4: 6.9% (exp 6.9% prev 6.9%)
- China Industrial Production (YoY) Dec: 5.9% (exp 6.0% prev 6.2%)
- China Industrial Production YtD (YoY) Dec: 6.1% (exp 6.1% prev 6.1%)
- China Retail Sales (YoY) Dec: 11.1% (exp 11.3% prev 11.2%)
- China Retail Sales YtD (YoY) Dec: 10.7% (exp 10.7% prev 10.6%)
- Australia ANZ Roy Morgan Weekly Consumer Confidence Index (W/E 17 Jan): 113.2 (prev 114.1)
- NBS: China Economy Faces Heavy Tasks Of Deepening Reform, Operated In Proper Range In 2015 — BBG
- NBS: China To Continue To See Stable Growth In 2016
- PBoC Fixes Yuan Reference Rate At 6.5596 (prev 6.5590)
- RBA Tipped To Cut Rates In June On China Woes & Low Oil Price — AFR
- Japanese Econ Min Amari: Excessive Oil Drop May Affect Japan's Economy — BBG
- BoE’s Vlieghe: Growth is slowing, inflation is muted, would need to see progress before wanted hike
- BoE's Vlieghe: Next move in rates likely to be up, could change if disappointments in data keep coming
Markets Update:
Chinese data missed expectations, but the Asian stock indices are up nevertheless, with Chinese markets rising on speculation of further economic stimulus by the government.
Price action in AUD/USD was volatile overnight. It fell from 0.6890 before the data releases to a low of 0.6840, but then recovered along with stocks. The pair rallied back to 0.6880 and has settled in a 0.6870-80 range for the past one hour. Similar price action was seen in NZD/USD, although a bit less volatile.
USD/CAD fell to a low of 1.4502 overnight as oil prices rose slightly. Support can be expected at 1.4488 and then 1.4420.
Meanwhile, the British Pound is not getting any rest. Just as it rose back above 1.43, dovish comments from BoE member Vlieghe pushed GBP/USD back sub-1.42 and eventually to a low of 1.4237 in Asia.
Upcoming Events:
- 07:00 GMT – German CPI
- 08:15 GMT – Swiss PPI
- 09:30 GMT – UK CPI
- 09:30 GMT – UK House Price Index
- 10:00 GMT – Euro Zone CPI
- 10:00 GMT – German ZEW Economic Sentiment
- 12:00 GMT – Bank of England Governor Carney speaks
- 15:00 GMT – US NAHB Housing Market Index
- 21:45 GMT – New Zealand CPI
