Global Markets:

  • New Zealand ANZ Business Confidence 39.7 % vs 42.8 % previous
  • Japan National CPI 3.6 % vs 3.7 % previous
  • Tokyo CPI 2.8 % vs 3.0 % previous
  • Asian stock markets: Nikkei up 0.60 %, Shanghai Composite rose 0.50 %, Hang Seng fell 0.15 % and the ASX dropped 0.20 %
  • Commodities: Gold up 0.05 % at $1291, Silver gained 0.20 % at $20.45, Crude Oil unchanged at $102
  • Rates: US 10 year yield at 2.50

FX Update:

  • AUD – Commodity currencies have been under pressure the past three sessions and the Aussie was no exception. AUD/USD fell to a low of 0.94 overnight, but demand from local corporate names had the support level holding. Bids seen at 0.9380 with stops in good size resting beneath. In the crosses, EUR/AUD bounced off 1.4210 and AUD/NZD retraced some of the gains made yesterday post-RBNZ.
  • CAD – Solid US econ data led to a rally (yes, we can call 30 pips moves rallies nowadays) in USD/CAD, but the topside was capped by the 1.0750 resistance. Offers still clustered 1.0750-1.0770 with stops in solid size through 1.0765. To the downside, bids 1.0700-10.
  • EUR – EUR/USD traded in a 7 pips range during the Asian session. The downtrend remains intact, but there is a lack of momentum. Cross flows have been supportive in the past few sessions with EUR/GBP and EUR/AUD bouncing off key support levels. Traders are now waiting for the German IPO release at 08:00 GMT.
  • JPY – USD/JPY stayed bid overnight, but there are solid offers around 102.00, as well as key tech resistance in form of the 200 DMA. To the downside, bids from Asian names reported at 101.50 and stops through 101.40.

Upcoming Events:

  • 06:00 GMT – German GfK Consumer Climate (8.9)
  • 08:00 GMT – Euro Zone M3 Money Supply (1.1 % YoY)
  • 08:00 GMT – German IFO Business Climate Index (109.4)
  • 08:30 GMT – UK GDP (0.8 % QoQ, 3.1 % YoY)
  • 12:30 GMT – US Durable Goods Orders (0.5 % MoM, 0.6 % Core MoM)