Global Markets:
- Asian stock markets: Nikkei down 0.85 %, Shanghai Composite fell 0.20 %, Hang Seng declined 1.55 %, ASX 200 lost 1.85 %
- Commodities: Gold at $1128 (+0.50 %), Silver at $15.28 (+0.25 %), WTI Oil at $31.10 (-2.35 %), Brent Oil at $32.80 (-1.40 %)
- Rates: US 10 year yield at 1.72, UK 10 year yield at 1.43, German 10 year yield 0.18
News & Data:
- Japan Services PPI (YoY) Jan: 0.2% (exp 0.3% prev 0.4%)
- Australia Wage Price Index (QoQ) Q4: 0.5% (exp 0.6% prev 0.6%)
- Australia Wage Price Index (YoY) Q4: 2.2% (exp 2.3% prev 2.3%)
- Australia Construction Work Completed (QoQ) Q4: -3.6% (exp -2.0% prev -3.6%)
- Hong Kong Unemployment Rate SA (Jan): 3.3% (exp 3.3% prev 3.3%) — Standard
- Hong Kong GDP (QoQ) Q4: 0.2% (exp 0.3% prev 0.9%)
- Hong Kong GDP (YoY) Q4: 1.9% (exp 2.2% prev 2.3%)
- Singapore GDP (YoY) Q4, F: 1.8% (exp 1.8% flash 2.0%)
- Singapore GDP SAAR (QoQ) Q4, F: 6.2% (exp 4.5% flash 5.7%)
- China Westpac-MNI Consumer Sentiment (Feb): 111.3 (prev 114.9)
- PBoC Fixes Yuan At 6.5302 (prev 6.5273)
- BoJ Gov Kuroda: Wont Push Rates Further Into Negative Territory Without Considering Effect On Inflation & Economy — RTRS
- Kuroda: Plenty Of Room For Further Rate Cuts
- Kuroda: BoJ Still Half Way To Achieving 2% Price Target, Too Early To Discuss Easing Exit Strategies — BBG
- Kuroda: Not Just JPY Rising, But Broad USD Weakness — RTRS
Markets Update:
The British Pound extended losses overnight and GBP/USD traded below 1.40 for the first time since 2009. The pair fell sub-1.40 ahead of the Tokyo open and eventually declined to a low of 1.3964. Next support is now seen at 1.39, while intraday resistance lies at 1.4030 and 1.4080.
EUR/USD remains resilient as it holds itself above 1.10, partly supported by large flows in EUR/GBP. The pair traded in a 1.10-25 range overnight and it seems that further consolidation is likely in the near-term. Meanwhile, USD/JPY fell to a low of 111.70 as Asian stock markets declined overnight. Comments from BoJ Governor Kuroda that the central bank is ready to take further action if necessary did not help to weaken the Yen.
The commodity currencies gave up some of their recent gains as the market has switched back to "risk-off" mode. AUD/USD fell from 0.7210 to 0.7166, while NZD/USD declined from 0.6640 to a low of 0.6605. USD/CAD is rising as oil prices are falling again and the pair rallied from 1.3782 in the early Asian session to a high of 1.3820. Resistance is seen at 1.3850 and then 1.3905.
Upcoming Events:
09:00 GMT – Norwergian Unemployment Rate
13:00 GMT – Bundesbank President Weidmann speaks
14:45 GMT – US Services PMI
15:00 GMT – US New Home Sales
15:30 GMT – US Crude Oil Inventories
