Global Markets:
- Asian stock markets: Nikkei down 1.00 %, Shanghai Composite lost 1.30 %, Hang Seng fell 1.85 %, ASX declined 0.30 %
- Commodities: Gold at $1072 (-0.30 %), Silver at $14.26 (-0.60 %), WTI Oil at $37.70 (+0.20 %), Brent Oil at $40.96 (+0.55 %)
- Rates: US 10 year yield at 2.21, UK 10 year yield at 1.81, German 10 year yield at 0.59
News & Data:
- China Trade Balance (Nov): CNY 343.1bln (exp CNY 407.50bln prev CNY 393.20bln)
- China Exports CNY (YoY) Nov: -3.70% (exp – 2.90% prev -3.60%)
- China Imports CNY (YoY) Nov: -5.60% (exp -11.30% prev -16.00%)
- Japan GDP SA (QoQ) Q3, F: 0.3% (exp 0.0% flash -0.2%)
- Japan GDP Annualised SA (QoQ) Q3, F: 0.8% (exp 0.2% flash -0.8%)
- Japan GDP Nominal SA (QoQ) Q3, F: 0.4% (exp 0.2% flash 0.0%)
- Japan GDP Private Consumption (QoQ) Q3, F: 0.4% (exp 0.5% flash 0.5%)
- Japan GDP Business Spending (QoQ) Q3, F: 0.6% (exp 1.0% flash -1.3%)
- Japan Current Account Balance (Oct): JPY 1458.4bln (exp JPY 1594.2bln prev JPY 1468.4bln)
- Japan Trade Balance (Oct): JPY 200.2bln (exp JPY 202.3bln prev JPY 82.3bln)
- Australia NAB Business Conditions (Nov): 10 (prev rev 10)
- Australia NAB Business Confidence (Nov): 5 (prev rev 3)
- PBoC Fixes Yuan Reference Rate At 6.4078 (prev 6.3985)
- New Zealand FinMin English Expects NZ GDP Growth Of 2.0-2.5% Over Next Few Years — BBG
- Australia ANZ Roy Morgan Weekly Consumer Confidence Index (W/E 6 Dec): 116.3 (prev 112.8)
Markets Update:
Overnight, the US Dollar regained some strength, except against the Euro and the Japanese Yen. Commodity currencies are under pressure, especially the Canadian Dollar, which has a high correlation with Oil prices. USD/CAD rallied to a fresh multi-year high at $1.3525 yesterday, as WTI fell below the previous yearly low at $37.70. The next notable resistance level lies at 1.3819, the June 2004 high, and then 1.40, the May 2004 high.
The Aussie Dollar extended losses in Asia, as it fell below 0.7250 support and to a current intraday low of 0.7234. There is decent support at 0.7220/25, but a break below would then pave the way for a 0.71 test. NZD/USD also declined, partly due to the upcoming RBNZ meeting, where the bank is expected to cut rates by 25 bps to 2.50 %. The pair fell to a low of 0.6631 overnight and is now approaching a key support area at 0.6610/20.
Price action in the other major pairs was rather subdued. EUR/USD consolidated in 1.0830-60 range in Asia. While it had a decent bounce off the 1.08 support level yesterday, a clear break above 1.10 will be needed to shift the short-term sentiment to bullish. USD/JPY still remains caught in the 122.20-123.75 range and it seems we might have to wait until the Fed meeting next week for a major breakout in any direction.
Upcoming Events:
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- 13:15 GMT – Canadian Housing Starts
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