Global Markets:
- Asian stock markets: Nikkei up 0.15 %, Shanghai Composite fell 0.10 %, Hang Seng lost 0.50 %, ASX declined 0.45 %
- Commodities: Gold at $1168.50 (-0.40 %), Silver at $15.82 (-0.15 %), WTI Oil at $46.45 (+0.30 %), Brent Oil at $48.75 (-0.20 %)
- Rates: US 10 year yield at 2.02, UK 10 year yield at 1.83, German 10 year yield at 0.56
News & Data:
- RBA Meeting Minutes: Overall Growth Expected To Have Strengthened In Q3
- Spare Capacity In Economy, Domestic Cost Pressures Low
- RBA: Economy's Rebalancing Increasingly Supported By A$ Fall
- RBA: More Evidence Of Economy Rebalancing Toward Non-Mining
- RBA: Labour Market Strengthened More than Expected
- RBA: Recent Data Raising Concern Over China & East Asia, Weighing On Australian Exports
- PBoC Fixes Yuan Reference Rate At 6.3614 (prev 6.3527)
- ECB's Noyer: ECB's QE program is working; currently running at the proper pace
Markets Update:
EUR/USD started the new trading day around 1.1325 and flows were rather light in the Asian trading session. The pair rose to a high of 1.1340 after the Tokyo open and spent the rest of the session in a 1.1330-40 range. The key levels to watch now are 1.1285 to the downside and 1.1395/1.14 to the topside. GBP/USD was slightly more volatile. After falling to a low of 1.5455 at the Sydney open, the pair recovered and made it back to the 1.5480 level. Key resistance is now seen at 1.55 and a clear break above it could pave the way for a test of 1.5650 (September high).
USD/JPY was caught within a 10 pips range overnight. 119.75/80 will be the next obstacle for the pair, while support should be found at 118.90 and 118.05. AUD/USD didn't have a major reaction to the RBA meeting minutes release. It jumped from 0.7255 to 0.7275, but retraced the entire move an hour later. Similar price action in NZD/USD, which followed the Aussie Dollar higher, but the topside was capped at 0.6815 resistance.
Upcoming Events:
- 01:30 BST – RBA Meeting Minutes
- 07:00 BST – German PPI
- 11:00 BST – Bank of England Governor Carney speaks
- 13:30 BST – US Building Permits
- 13:30 BST – US Housing Starts
- 14:00 BST – FOMC Member Dudley speaks
- 14:15 BST – FOMC Member Powell speaks
- 16:00 BST – Fed Chair Yellen speaks
