Global Markets:
- Asian stock markets: Nikkei up 0.10 %, Shanghai Composite rose 0.20 %, Hang Seng gained 1.15 %, ASX 200 rallied 0.45 %
- Commodities: Gold at $1260 (+0.30 %), Silver at $17.61 (+0.80 %), WTI Oil at $50.225 (+0.60 %), Brent Oil at $51.80 (+0.55 %)
- Rates: US 10 year yield at 1.78, UK 10 year yield at 1.13, German 10 year yield at 0.05
News & Data:
- New Zealand CPI (Q3, QoQ): 0.20% (est 0.00%, prev 0.40%)
- New Zealand CPI (Q3, YoY): 0.20% (est 0.10%, prev 0.40%)
- New Zealand ANZ/RM Weekly Consumer Confidence (16/Oct): 117.8 (prev 117.5)
- Australia New Motor Vehicle Sales MoM Sep: 2.50% (prev 0.10%)
- Australia New Motor Vehicle Sales YoY Sep: 0.80% (prev rev 2.80%)
- PBOC fixes yuan midpoint at 6.7303 (prev fix 6.7379, prev close 6.7385)
- Japan FinMin Aso: Watching the FX market closely, excess FX volatility and disorderly moves would hurt the economy
- Asian stocks lifted by firmer oil prices; dollar steady – RTRS
- Fed 'very close' to employment, inflation goals: Fischer – RTRS
- Dollar takes breather, market ponder near-term Fed rates view – RTRS
Markets Update:
The US Dollar weakened following worse than expected US econ data yesterday. This has especially benefited commodity currencies.
The New Zealand Dollar rallied after better than expected inflation data. While this is unlikely to prevent the RBNZ from cutting rates next month, it could mean that further rate cuts beyond November are less likely. NZD/USD rallied from 0.7130 to 0.7190 in Asia, while AUD/NZD fell from 1.07 to 1.0620. The Australian Dollar caught a bid as well, and rallied from 0.7620 in 0.7675 overnight. USD/CAD came under pressure in the early Asian session and dropped from 1.3130 to 1.3080. Oil was another factor that supported the Canadian Dollar, as WTI bounced in Asia.
EUR/USD traded 1.0995-1.1025 overnight, with flows light as usual. GBP/USD saw increased volatility at the Tokyo open and it rallied from 1.2180 to 1.2270 without any apparent reason. The topside was capped at 1.2270 for now and it fell back to 1.2220.
The focus today will be on UK and US inflation data.
Upcoming Events:
- 09:30 BST – UK CPI
- 13:30 BST – US CPI
- 13:30 BST – Canadian Manufacturing Sales
- 13:55 BST – US Redbook
- 15:00 BST – US NAHB Housing Market Index
