Global Markets:
- Asian stock markets: Nikkei down 0.30 %, Shanghai Composite gained 1.20 %, Hang Seng rose 0.60 %, ASX 200 gained 0.40 %
- Commodities: Gold at $1137 (+0.35 %), Silver at $16.20 (+0.55 %), WTI Oil at $53.50 (+0.40 %), Brent Oil at $55.50 (+0.30 %)
- Rates: US 10-year yield at 2.56, UK 10-year yield at 1.40, German 10-year yield at 0.27
News & Data:
- Australian Westpac Leading Index (MoM) Nov: 0.02% (prev 0.06%, rev 0.10%)
- Australian Skilled Vacancies (MoM) Nov: 0.0% (prev 0.4%)
- Japanese All Industry Activity Index (MoM) Oct: 0.2% (est 0.1%, prev 0.2%)
- New Zealand Trade Balance (NZD) Nov: -705mln (est -500mln, prev -846mln)
- New Zealand Exports (NZD) Nov: 3.86bln (est 4.00bln, prev 3.90bln)
- New Zealand Imports (NZD) Nov: 4.56bln (est 4.50bln, prev 4.74bln)
- New Zealand Credit Card Spending (MoM) Nov: -4.2% (prev 2.8%)
- New Zealand Credit Card Spending (YoY) Nov: 4.1% (prev 10.2%)
- South Korean Imports 20-Day (YoY) Dec: 9.4% (prev -3.1%)
- South Korean Exports 20-Day (YoY) Dec: 11.6% (prev -0.2%)
- PBoC fixes yuan midpoint at 6.9489 (prev 6.9468)
- Dollar basks in yield glow, Nikkei at one-year peak – RTRS
- Oil prices edge up on expected U.S. crude inventory draw – RTRS
Markets Update:
Flows were light in Asia, amid a lack of news and data. EUR/USD opened around 1.0385 in Tokyo and rallied to 1.0418, but ran out of momentum there and eventually settled in a 1.0405-15 range for the rest of the session. Resistance is seen at the recent high at 1.0475, followed by 1.05, while support can be expected at 1.0350 and 1.0320.
GBP/USD followed the Euro higher, from 1.2350 to a 1.2382. Techs remain bearish, but the pair has found decent support ahead of 1.23 yesterday and a break above 1.2420 would suggest it could extend gains to 1.2510.
In USD/JPY, resistance above 118 proved to be too strong once again, and it fell back to a low of 117.40. Major support is noted at 116.20, while the key resistance level to watch is 118.65.
The commodity currencies had a mixed performance overnight – the Australian Dollar fell slightly (from 0.7270 to 0.7250), while the New Zealand Dollar appreciated against the USD (from 0.6920 to a high of 0.6950).
Upcoming Events:
- 15:00 GMT – US Existing Home Sales
- 15:30 GMT – US Crude Oil Inventories
- 21:45 GMT – New Zealand GDP
- 21:45 GMT – New Zealand Current Account
