Global Markets:
- Asian stock markets: Nikkei down 3.40 %, Shanghai Composite fell 1.20 %, Hang Seng and ASX 200 both declined 2.40 %
- Commodities: Gold at $1127 (+0.05 %), Silver at $14.28 (-0.10 %), WTI Oil at $29.66 (-0.70 %), Brent Oil at $32.50 (-0.65 %)
- Rates: US 10 year yield at 1.85, UK 10 year yield at 1.54, German 10 year yield at 0.30
News & Data:
- China Caixin Services PMI (Jan): 52.4 (prev 50.2)
- China Caixin Composite PMI (Jan): 50.1 (prev 49.4)
- Japan Nikkei Services PMI (Jan): 52.4 (prev 51.5)
- Japan Nikkei Composite PMI (Jan): 52.6 (prev 52.2)
- Singapore Nikkei PMI (Jan): 52.5 (prev 52.1)
- Australia Building Approvals (MoM) Dec: 9.2% (exp 4.5% prev -12.7%) Australia Building Approvals (YoY) Dec: -2.5% (exp -7.2% prev -8.4%)
- Australia Trade Balance (Dec): AUD -3535mln (exp AUD -2450mln prev rev AUD -2727mln)
- Australia Posts 2015 Trade Deficit Of AUD 32.7 Billion, Largest On Record
- New Zealand Unemployment Rate (Q4): 5.3% (exp 6.1% prev 6.0%)
- New Zealand Employment Change (QoQ) Q4: 0.9% (exp 0.8% prev -0.4%)
- New Zealand Employment Change (YoY) Q4: 1.3% (exp 1.1% prev 1.5%)
- New Zealand Participation Rate (Q4): 68.4% (exp 68.9% prev rev 68.7%)
- New Zealand Average Hourly Earnings (QoQ) Q4: 0.2% (exp 0.5% prev 0.4%)
- RBNZ Governor Wheeler: Monetary Policy Will Continue To Be Accommodative
- Wheeler: May Ease Further If Global Outlook Worsens
- Wheeler: Inappropriate To Cut Rate In Response To Low Oil Price
- Wheeler: Don't Want Price Expectations To Drop Significantly
- Wheeler: Will Avoid Mechanistic Response To Low Inflation
- Wheeler: Some Further Exchange Rate Depreciation Is Desirable
- PBoC Fixes Yuan Reference Rate At 6.5521 (prev 6.5510)
Markets Update:
The New Zealand Dollar rose after better than expected employment data. Employment change increased 0.9 %, while the unemployment rate fell from 6.0 % to 5.3 %. NZD/USD rallied from 0.6490 to 0.6540 after the data release and extended gains to 0.6550 later in the session.
The Aussie Dollar fell after weaker than anticipated Australian trade data, with AUD/UD declining to 0.70. The support held is holding so far, but is looking fragile. Should it break, next support is seen at 0.6920.
USD/JPY extended losses overnight, as the decline in stocks & oil weighed on the currency pair. It fell as low as 119.40 and support is now seen in the 118.80-119.00 area. EUR/USD consolidated in a 1.0912-36 range, while GBP/USD traded 1.4390-1.44415.
Upcoming Events:
- 08:15 GMT – Spanish Services PMI
- 08:45 GMT – Italian Services PMI
- 08:50 GMT – French Services PMI
- 08:55 GMT – German Services PMI
- 09:00 GMT – Euro Zone Services PMI
- 09:30 GMT – UK Services PMI
- 10:00 GMT – Italian CPI
- 10:00 GMT – Euro Zone Retail Sales
- 13:15 GMT – US ADP Nonfarm Employment Change
- 14:45 GMT – US Services PMI
- 15:00 GMT – US ISM Non-Manufacturing PMI
- 15:30 GMT – US Crude Oil Inventories
