Global Markets:
- Asian stock markets: Nikkei up 0.05 %, Shanghai Composite gained 0.40 %, Hang Seng declined 1.10 %, ASX 200 rose 0.15 %
- Commodities: Gold at $1260 (-0.05 %), Silver at $17.69 (+0.15 %), WTI Oil at $51.25 (-0.20 %), Brent Oil at $53.05 (-0.20 %)
- Rates: US 10 year yield at 1.77, UK 10 year yield at 1.02, German 10 year yield at 0.05
News & Data:
- Australian ANZ Roy Morgan Weekly Consumer Confidence Oct-9: 117.5 (prev 117.9)
- Australian NAB Business Conditions Sep: 8 (prev 7)
- Australian NAB Business Confidence Sep: 6 (prev 6)
- Australian Home Loans (MoM) Aug: -3.0% (est -1.5%, prev -4.2%, rev -4.5%)
- Australian Investment Lending (MoM) Aug: 0.1% (prev 0.5%)
- Japan Trade Balance BoP Basis (JPY) Aug: 243.2bln (est 116.5bln, prev 613.9bln)
- Japan Current Account (JPY) Aug: 2000.8bln (est 1502.7bln)
- PBoC Fixes Yuan Reference Rate at 6.7098 (prev 6.7008)
- Fed’s Evans: Sees inflation not improving to 2% until about 2020
- China Premier Li: Global economic recovery is slow; protectionism is rising
- Li: Chinese is economy is in a reasonable range
- Li: Economy still faces downward pressure; debt risks are under control
- RBNZ’s McDermott: Projections indicate further easing will be required
Markets Update:
Commodity currencies declined sharply overnight, as the US Dollar extended gains. AUD/USD fell from 0.7610 in the early Asian session to a low of 0.7545 so far. It has broken below key support and further losses seem likely. NZD/USD has been under pressure since it broke below 0.72, and it extended losses to 0.7060 overnight. Techs remain bearish, with key support now seen at 0.6950. Meanwhile, USD/CAD keeps rising, despite the rally in oil prices, which usually supports the Canadian Dollar. USD/CAD bounced off 1.3140 yesterday and is now back above 1.32.
The Pound is still weak and continues to post fresh lows, although a bit slower since Friday's flash crash. GBP/USD traded as low as 1.2300 overnight, and a break below the big figure seems imminent. EUR/USD was quiet as usual, trading in a 1.1120-40 range.
Gold retraced some of the gains it made yesterday, but is holding relatively well given the broad USD strength at the moment. Support is seen at $1250, followed by Friday's low at $1241. Silver was rejected at $17.75 resistance yesterday and fell to $17.57 in Asia. Key support is noted at $17.05.
Upcoming Events:
- 10:00 BST – German ZEW Economic Sentiment
- 10:00 BST – Euro Zone ZEW Economic Sentiment
- 13:15 BST – Canadian Housing Starts
- 16:00 BST – FOMC Member Kashkari speaks
