Global Markets:
- Asian stock markets: Nikkei up 0.10 %, Shanghai Composite gained 0.10 %, Hang Seng declined 0.15 %, ASX 200 rallied 0.40 %
- Commodities: Gold at $1263 (+0.05 %), Silver at $17.65 (+0.05 %), WTI Oil at $50.78 (+0.95 %), Brent Oil at $52.16 (+0.95 %)
- Rates: US 10 year yield at 1.74, UK 10 year yield at 1.08, German 10 year yield at 0.03
News & Data:
- China GDP (YtD) (YoY) Q3: 6.70% (est 6.70%, prev 6.70%)
- China Industrial Production (YoY) Sep: 6.10% (est 6.40%, prev 6.30%)
- China Industrial Production (YtD) (YoY) Sep: 6.0% (est 6.10%, prev 6.00%)
- China Retail Sales (YoY) Sep: 10.70% (est 10.70%, prev 10.60%)
- China Retail Sales (YtD) (YoY) Sep: 10.40% (est 10.30%, prev 10.30%)
- Australia Westpac Leading Index (MoM) Sep: 0.06 (prev rev 0.01%)
- Australia Skilled Vacancies (MoM) Sep: -1.20% (prev -0.40%)
- PBOC fixes yuan at 6.7326 (prev fix 6.7303, prev close 6.7418)
- Asian shares manage muted cheer for China growth
- Rising gasoline, rents push U.S. inflation higher in September
- Oil rises on U.S. crude inventory draw, falling Chinese output
Markets Update:
The US Dollar declined against most other currencies overnight, after lower than expected US inflation data dampened expectations for a Fed rate hike. EUR/USD opened at 1.0975 in Asia and rose to a high of 1.10, before declining back to 1.0985. USD/JPY briefly rose towards 104.00 in the early Asian session, but ran out of steam and eventually fell to 103.65. Meanwhile, the Pound declined from 1.2310 to 1.2275 against the Dollar.
The New Zealand Dollar was the best performing major currency in the Asian session, as NZD/USD rallied from 0.7190 to 0.7235. NZD/USD has cleared several important resistance levels, and the next one now lies at 0.7310. AUD/USD remains bid as well and rose to 0.7690 overnight. However, it continues to struggle ahead of the 0.77 level, which has proved to be a tough resistance level in the past few weeks.
Despite the overall USD weakness, precious metals failed to extend gains. Silver fell back to $17.60 in Asia after trading as high as $17.70 in yesterday's US session. Gold declined from $1264 to $1261.
The main events today are UK employment data and the Bank of Canada rate decision. The BoC is expected to keep rates unchanged.
Upcoming Events:
- 09:30 BST – UK Claimant Count Change
- 13:30 BST – US Building Permits
- 13:30 BTS – US Housing Starts
- 13:45 BTS – FOMC Member Williams speaks
- 15:00 BST – Bank of Canada Interest Rate Decision
- 15:00 BST – Bank of Canada Monetary Policy Report
- 15:30 BST – US Crude Oil Inventories
- 16:15 BST – Bank of Canada Governor Poloz speaks
- 17:15 BST – FOMC Member Harker speaks
- 18:30 BST – FOMC Member Kaplan speaks
- 19:00 BST – US Beige Book
