Asian stock markets: Nikkei down 0.75 %, Shanghai Composite lost 0.05 %, Hang Seng gained 0.30 %, ASX 200 declined 0.90 %
Commodities: Gold at $1286 (+0.30 %), Silver at $17.55 (-0.20 %), WTI Oil at $47.06 (-0.70 %), Brent Oil at $49.10 (-0.70 %)
Rates: US 10-year yield at 2.17, UK 10-year yield at 1.05, German 10-year yield at 0.29
News & Data
Australia Current Account 3.1bln vs 0.1bln expected
Australia Net Exports Contribution -0.7 % vs -0.4 % expected
New Zealand ANZ Commodity Price Index m/m 3.2 % vs -0.2 % previous
Japan Average Cash Earnings y/y 0.5 % vs 0.3 % expected
UK BRC Retail Sales Monitor y/y -0.4 % vs -0.5 % expected
Asian stocks stumble, oil creeps up as markets ponder fallout of Mideast tension – RTRS
U.S. services, factory data point to moderate economic growth – RTRS
Oil resumes slide on worries Middle East rift could sap drive to cut output – RTRS
The Dollar is under renewed pressure. The risk-off sentiment in markets has pushed USD/JPY below 110. A daily close below that level would be quite bearish and signal a move towards 108 in the near-term.
Meanwhile, EUR/USD is likely to test 1.13 soon. The currency remains very well bid, but a major rally seems unlikely ahead of the ECB meeting on Thursday. Traders will likely wait for the new projections from the central bank, as well as the comments from ECB President Draghi. There have been speculations that the ECB will soon signal a turn in their monetary policy.
GBP/USD rose to 1.2925 overnight. The broad USD weakness pushed the pair higher, despite the uncertainty that remains around the UK election. Volatility is likely to increase ahead of the Thursday vote.
AUD/USD has been quiet overnight, as traders are waiting for the RBA rate decision. Rates are very likely to remain unchanged, but traders are looking forward to any changes in the RBA statement and hints about the future monetary policy.