Global Markets:
- Asian stock markets: Nikkei up 0.50 %, Shanghai Composite down 0.80 %, Hang Seng lost 0.40 %, ASX 200 gained 0.50 %
- Commodities: Gold at $1137 (-0.40 %), Silver at $16.03 (-0.40 %), WTI Oil at $52.90 (-0.30 %), Brent Oil at $54.80 (-0.20 %)
- Rates: US 10 year yield at 2.56, UK 10 year yield at 1.40, German 10 year yield at 0.25
News & Data:
- Bank of Japan keeps interest rates unchanged at -0.1%, as expected
- Bank of Japan maintains current yield curve control policy
- Bank of Japan upgrades economic assessment; economy likely to turn to moderate expansion
- BoJ: Vote was 7 to 2 to keep policy unchanged; Kiuchi and Sato opposed YCC decision
- Bank of Japan: To keep expanding monetary base until inflation exceeds 2%
- NZ Food Price Index (MoM) Nov: -0.1% (prev -0.8%)
- PBoC fixes yuan midpoint at 6.9468 (prev 6.9312)
- RBA Minutes: Latest data meant steady policy right for growth and inflation
- RBA Minutes: Overall conditions in housing market had strengthened
- RBA Minutes: International background more positive
- Yen eases as BOJ keeps policy steady, Asia stocks mixed – RTRS
- BOJ keeps policy on hold, brightens view of economy – RTRS
Markets Update:
USD/JPY rallied overnight, after the Bank of Japan kept its monetary policy unchanged. The pair fell to a low of 116.55 in yesterday's NY session, but bounced after positive comments about the US economy from Fed Chair Yellen. In Asia, it recovered to 117.75 and the next notable resistance levels are now 118.00 and 118.60.
The Euro fell in yesterday's late NY session, partly due to the USD rally caused by the Yellen comments, but also due to the tragic event in Berlin. In Asia, EUR/USD traded as low as 1.0392.
AUD/USD fell to a fresh 6-month low overnight, at 0.7240. The outlook remains bearish, but the pair does look oversold in the near-term. Look for resistance at 0.7315 and 0.7370, while support now lies at 0.72 and 0.7145. NZD/USD followed the AUD lower and traded as low as 0.6915 in Asia. A break below 0.69 support would signal a move towards 0.67.
Upcoming Events:
- 07:00 GMT – German PPI
- 07:30 GMT – Bank of Japan Press Conference
- 09:00 GMT – Euro Zone Current Account
- 21:45 GMT – New Zealand Trade Balance
