Global Markets:
- Asian stock markets: Nikkei lost 0.15 %, Shanghai Composite down 0.04 %, Hang Seng down 0.86 %, ASX 200 fell 0.45 %
- Commodities: Gold at $1343.91 (-0.05 %), Silver at $17.98 (+0.21 %), WTI Oil at $48.59 (-0.14 %), Brent Oil at $53.20 (-0.36%)
- Rates: US 10-year yield at 2.07, UK 10-year yield at 1.01, German 10-year yield at 0.32
News & Data:
- AUD GDF q/q 0.8 % vs 0.8 % expected
- JPY Average Cash Earnings -0.3 % vs 0.5 % expected
- CHF CPI m/m 0.0 % vs -0.3 % previous
- GBP Services PMI 53.2 vs 53.5 expected
- USD Factory Orders m/m -3.3 % vs 0.3 % expected
- NZD GDT Price Index 0.3 % vs 0.3 % expected
- Fed policymakers signal caution on inflation, rate hikes- RTRS
Markets Update:
Asian equity markets declined on Wednesday, following the fall on wall street. Overnight the U.S. stocks slipped while Treasuries rallied the most in 10 months as tensions with North Korea mounted and another Atlantic hurricane threatened to make landfall.
USDJPY was seen trading down around 108.50 in pre-Tokyo session as the US Dollar continued to lose against the Yen. The dollar lost 0.9 percent overnight, its biggest one-day drop in three months. But as Tokyo became more active it recovered to 108.80 and is mid-range at the moment trading around 180,70. The Average Cash earnings had slid down to -0.3 % from 0.4 %.
EURUSD is currently seen trading at 1.1914 as the Euro increased 0.2 percent against the US Dollar. The dollar suffered after Federal Reserve Governor Lael Brainard said on Tuesday inflation was “well short” of targetThe dollar index, which tracks the dollar against a basket of currencies, was little changed at 92.32
AUDUSD rallied higher early on Wednesday reaching highs of around 0.8020 ahead of the GDP release, however the Aussie lost most of it gains and fell to trade below 0.8 after the release of GDP data and is currently seen trading around 0.7990. NZDUSD followed a similar patter, the kiwi was seen trading higher reaching highs of 0.7260 early in its morning and then turning lower currently seen trading below 0.7230 against the US Dollar.
Upcoming Events:
- 12:30 GMT – (CAD) Trade Balance
- 12:30 GMT – (CAD) Labor Productivity q/q
- 12:30 GMT – (USD) Trade Balance
- 14:00 GMT – (CAD) BOC Rate Statement
- 14:00 GMT – (CAD) Overnight Rate
- 14:00 GMT – (USD) ISM Non-Manufacturing PMI
