Global Markets: 

  • Japan (JPY) Unemployment Rate (JUN): 3.7%, Expected: 3.5%, Previous: 3.5%
  • Japan (JPY) Retail Sales (JUN) (y/y): -0.6%, Expected: -0.5%, Previous: -0.4%
  • Australia (AUD) HIA New Home Sales (m/m): 1.2%, Previous: -4.3%
  • BoJ’s Ishida: Bank is paying close attention to consumer spending, exports
  • BoJ’s Ishida: 2 % inflation target might be reached in mid of projection of period, fall in real income could affect spending
  • Japan’s FinMin Aso: Government to decide on sales tax hike by year end
  • Asia Stock Markets: Nikkei up 0.50 %, Shanghai Composite gained 0.10 %, Hang Seng and ASX both rose 0.20 %
  • Commodities: Gold up 0.10 % at $1307, Silver rose 0.25 % to $20.62, Crude Oil down 0.30 % at $101.38
  • Rates: US 10 year yield at 2.496 

FX Update: 

  • AUD – AUD/USD climbed higher in the early Asian session, reaching a high of 0.9416. The gains were retraced quickly though, as the pair continues to gravitate towards the 0.94 level. It is unlikely to move out of the 0.9360-0.9440 ahead of tomorrow’s key data releases & the Fed. Bids resting ahead of the 0.9380 support with trailing stops beneath. To the topside, offers at 0.9420 and then 0.9440-50.
  • CAD – USD/CAD still consolidating around the 1.0810 level ahead of key technical resistance at 1.0820-35. Same story as Aussie, we’ll probably just trade in a 1.0780-1.0830 range pre-US data tomorrow. Bids have moved up to 1.0780 and good support now seen at 1.0750. To the topside, offers pre-1.0820 and stops building above.
  • EUR – EUR/USD has been trading within a 18 pips range since the week’s open. Asian sovereign names were reported sellers near the highs and said to have more selling interest above 1.3450. Key intraday resistance lies at 1.3475, while support seen at 1.3420. Bids from option players & corporate names ahead of 1.34, where barrier options are reported.
  • GBP – GBP/USD is moving lower into the London open and approaching 1.6960 support. No key data releases out of the UK today, but we have MPC member Broadbent speaking at 07:00 GMT.
  • JPY – USD/JPY is approaching the 102.00 level; good tech resistance above, but also plenty of stops, which could accelerate the upmove. Offers from exporters reported at 102.20, while bids resting at 101.70-75.
  • NZD – The Kiwi is under pressure this morning as Fonterra cuts farmer payout to $NZ6/kg milk, citing declining global dairy prices, drop in demand and the high New Zealand Dollar. 

Upcoming Events: 

  • 07:00 GMT – BoE MPC Member Broadbent speaks
  • 13:00 GMT – US S&P/CS HPI Composite (10.0 %)
  • 14:00 GMT – US CB Consumer Confidence (85.3)