Global Markets:
- Asian stock markets: Nikkei up 0.65 %, Hang Seng rose 0.45 %, ASX 200 rallied 0.55 %
- Commodities: Gold at $1267 (-0.10 %), Silver at $17.28 (+0.20 %), WTI Oil at $49.50 (-0.70 %), Brent Oil at $51.50 (-0.70 %)
- Rates: US 10 year yield at 1.71, UK 10 year yield at 0.81, German 10 year yield at -0.01
News & Data:
- Australia Trade Balance (AUD) Aug: -2.01B (est. -2.30B, rev prev. -2.12B from -2.41B)
- Australia Exports (MoM) Aug: 0% (prev. 3%)
- Australia Imports (MoM) Aug: 0% (prev. 0%)
- New Zealand ANZ Truckometer Heavy (MoM) Sep: -1.4% (prev. 6.70%)
- Asia stocks up on solid US data, gold hit by stimulus taper fears – RTRS
- Energy, bank stocks lead Wall Street higher – RTRS
Markets Update:
Commodity currencies are under increased pressure amid broad USD strength. AUD/USD fell again below 0.76 overnight, and support at 0.7590 looks fragile. NZD/USD was quiet in Asia and consolidated between 0.7150-80 after heavier losses yesterday, but continues to trade with an offered tone as well. The Canadian Dollar is doing slightly better, supported by rising oil prices, but USD/CAD nevertheless made it back above 1.32.
EUR/USD spent the Asian session in a 12 pips range and has generally been stuck within a tight range for the past few trading weeks. Better volatility can be seen in GBP/USD, which continues to suffer from last weekend's announcement that Article 50 will be triggered next March.
USD/JPY has paused slightly, following a +200 pips rally this week (so far). Resistance is now seen at 104.00, but 105 is the significant level to watch.
Upcoming Events:
- 07:00 BST – German Factory Orders
- 08:15 BST – Swiss CPI
- 12:30 BST – ECB Meeting Minutes
- 13:30 BST – US Initial Jobless Claims
- 13:30 BST – Canadian Building Permits
