Global Markets:
- Asian stock markets: Nikkei up 2.50 %, Shanghai Composite lost 2.80 %, Hang Seng gained 0.60 %, ASX 200 declined 1.20 %
- Commodities: Gold at $1120 (+0.05 %), Silver at $14.45 (-0.70 %), WTI Oil at $30.85 (-1.80 %), Brent Oil at $32.15 (+1.20 %)
- Rates: US 10 year yield at 1.99, UK 10 year yield at 1.69, German 10 year yield at 0.44
News & Data:
- Australia CPI (QoQ) Q4: 0.4% (exp 0.3% prev 0.5%)
- Australia CPI (YoY) Q4: 1.7% (exp 1.6% prev 1.5%)
- Australia CPI Trimmed Mean (QoQ) Q4: 0.6% (exp 0.5% prev 0.3%)
- Australia CPI Trimmed Mean (YoY) Q4: 2.1% (exp 2.1% prev 2.1%)
- Australia CPI Weighted Median (QoQ) Q4: 0.5% (exp 0.5% prev 0.3%)
- Australia CPI Weighted Median (YoY) Q4: 1.9% (exp 2.1% prev 2.2%)
- Australia Westpac Leading Index (MoM) Dec: -0.3% (prev rev -0.3%)
- Australia ANZ Roy Morgan Weekly Consumer Confidence Index (W/E 24 Jan): 112.2 (prev 113.2)
- China Industrial Profits (YoY) Dec: -4.7% (prev -1.4%)
- China Westpac-MNI Consumer Sentiment (Jan): 114.9 (prev 113.7)
- PBoC Fixes Yuan Reference Rate At 6.5533 (prev 6.5548)
- Asian stocks struggle as headwinds grow; gold shines – RTRS
- Oil falls around 2 percent as profit-taking kicks in – RTRS
Markets Update:
The Australian Dollar rallied overnight, after higher than expected inflation data. AUD/USD rose from 0.6990 to a high of 0.7040, while AUD/NZD climbed from 1.0750 to 1.0845. Immediate resistance in AUD/USD is seen at 0.7050, but 0.71 remains the key level to watch in the short-term. Intraday support can be expected at 0.6970 and 0.6920.
NZD/USD failed to follow the AUD higher and fell from 0.6515 at the Sydney open to a low of 0.6475 in the late Asian session. Support is noted at 0.6425 and then at 0.6350.
After falling 250 pips yesterday, USD/CAD found good support at 1.4050 and the decline in oil overnight helped it recover slightly. The pair rose to a high of 1.4135 in Asia and resistance is now seen at 1.4165 and 1.4220.
USD/JPY remains choppy with the market constantly switching between risk-on and risk-off. The pair rose to 118.60 into the NY close, but fell in Asia along with the Nikkei. It reached a low of 118.04 before bouncing back to 118.20.
Upcoming Events:
- 07:00 GMT – German GfK Consumer Climate
- 09:00 GMT – Italian Consumer Confidence
- 15:00 GMT – US New Home Sales
- 15:30 GMT – US Crude Oil Inventories
- 19:00 GMT – Federal Reserve Interest Rate Inventories
- 19:00 GMT – FOMC Statement
- 20:00 GMT – RBNZ Interest Rate Decision
- 21:45 GMT – New Zealand Trade Balance
