Global Markets:
- Asian stock markets: Nikkei up 0.10 %, Shanghai Composite gained 0.05 %, Hang Seng rose 0.50 %, ASX 200 rallied 0.70 %
- Commodities: Gold at $1162 (+0.25 %), Silver at $17.00 (+0.20 %), WTI Oil at $52.30 (-1.30 %), Brent Oil at $55.05 (-1.20 %)
- Rates: US 10-year yield at 2.46, UK 10-year yield at 1.44, German 10-year yield at 0.36
News & Data:
- Australian Westpac Consumer Confidence Dec: down 3.9% to 97.3 (prev down 1.1% to 101.3)
- Australian New Motor Vehicle Sales (MoM) Nov: -0.6% (prev -2.4%)
- Japanese Tankan Large Manufacturing Index Q4: 10 (est 10, prev 6)
- Japanese Tankan Large Manufacturing Outlook Q4: 8 (est 9, prev 6)
- Japanese Tankan Large Non-Manufacturing Index Q4: 18 (est 19, prev 18)
- Japanese Tankan Large Non-Manufacturing Outlook Q4: 16 (est 19, prev 16)
- Japanese Tankan All Large Capex Estimate Q4: 5.5% (est 6.1%, prev 6.3%)
- Japanese Tankan Small Manufacturing Index Q4: 1 (est -1, prev -3)
- Japanese Tankan Small Manufacturing Outlook Q4: -4 (est -2, prev -5)
- Japanese Tankan Small Non-Manufacturing Index Q4: 2 (est 2, prev 1)
- Japanese Tankan Small Non-Manufacturing Outlook Q4: -2 (est -1, prev -2)
- Japanese Tankan All Small Capex Estimate Q4: -6.2 (est -3.1%, prev -9.0%)
- Japan Industrial Production (MoM) Oct F: 0.0% (prev 0.1%)
- Japan Industrial Production (YoY) Oct F: -1.4% (prev -1.3%)
- Japan Capacity Utilisation (MoM) Oct: 1.4% (prev -2.0%)
- South Korean Unemployment Rate Nov: 3.6% (est 3.7%, prev 3.7%)
- PBoC fixes yuan at 6.9028 (prev 6.8934)
- Photo
- Asia ready for Fed hike, anxious on rate outlook – RTRS
- Oil prices fall on rising U.S. crude stocks, OPEC output concerns – RTRS
Markets Update:
The FX market was quiet overnight, as traders are waiting for the Fed rate decision tonight. There were plenty of data releases out of Japan overnight, but they had little impact on markets. USD/JPY consolidated in a 115.00-33 range and flows were light.
The Euro slightly rose overnight, from 1.0620 to 1.0640 against the Dollar. Strong resistance is seen at 1.07, while support can be expected at 1.0550 and 1.0510. GBP/USD fell to 1.2640 in Asia, after it was rejected at 1.2730 resistance yesterday.
The commodity currencies are mixed – the Aussie and Canadian $ are down against the USD, while the NZD appreciated. AUD/USD fell from 0.75 to 0.7480, and the pair is likely to come under increased pressure if it does not clear 0.7500/20 resistance soon.
The main event today is the Fed rate decision. The central bank is expected to increase rates by 25 bps, the second rate hike after the end of the QE3 programme.
Upcoming Events:
- 09:30 GMT – UK Claimant Count Change
- 09:30 GMT – UK Unemployment Rate
- 09:30 GMT – UK Average Weekly Earnings
- 10:00 GMT – Euro Zone Industrial Production
- 13:30 GMT – US PPI
- 14:15 GMT – US Industrial Production
- 14:15 GMT – US Manufacturing Production
- 15:30 GMT – US Crude Oil Inventories
- 19:00 GMT – Fed Rate Decision
- 21:30 GMT – New Zealand NZ Manufacturing Index
