Global Markets:

  • Asian stock markets: Nikkei down 0.90 %, Shanghai Comp fell 0.10 %, Hang Seng declined 0.45 %, ASX has lost 1.30 %
  • Commodities: Gold at $1223 (+0.10 %), Silver at $17.63 (+1.10 %), Crude Oil at $92.55 (unch)
  • Rates: US 10 year yield at 2.50

News & Data: 

  • Japan CPI 3.1, Expected: 3.2 %, Previous: 3.3 %
  • Japan Core CPI 3.3 %, Expected: 3.4 %, Previous: 3.4 %
  • Tokyo CPI 2.9 %, Previous: 2.8 %
  • Tokyo Core CPI 2.6 %, Expected: 2.6 %, Previous: 2.7 %
  • China CB Leading Economic Index (AUG): 0.7, Previous: 1.3
  • Japan FinMin Aso: Will decide on sales tax increase by the end of this year

FX Overview: 

AUD/USD is getting no rest and has posted fresh lows overnight. Little support now seen until the current yearly low of 0.8658, but the pair is likely to run into good bids ahead of the level, including profit-taking from shorts. It is worth noting that AUD/USD is now down 650 pips in 3 weeks, while the NZD/USD has declined almost 1000 pips since early July this year.  RBNZ Governor Wheeler certainly picked the perfect timing for verbal intervention, as his comments would probably have much less of an impact without the strong USD trend. Intraday, Asia reports bids at 0.8720 in AUD/USD, while offers are resting at 0.89 in good size. Intraday stops reported through 0.8910. In NZD/USD, support noted at 0.7840/50, while the key intraday resistance level lies at 0.7950.

USD/JPY dropped in yesterday’s NY session amid weak US equities and a story about a delay in the GFIP announcement. The pair remained well-bid however, with the 108.50 support level holding. Overnight, dealers saw the usual selling from exporter names and see good offers in front of the 109.50 level. To the downside, bids noted at 108.80 and strong around 108.50 Stops in good size through 108.40.

In EUR/USD, bids are scattered between 1.2720 and 1.27, while solid offers eyed at 1.2780. 

Upcoming Events: 

  • 06:00 GMT – German Import Price Index (-0.2 % MoM, -2.0 % YoY)
  • 06:45 GMT – French Consumer Confidence (86.0)
  • 08:00 GMT – Italian Business Confidence (95.5)
  • 12:30 GMT – US GDP (4.6 % QoQ)
  • 12:30 GMT – US GDP Price Index (2.1 % QoQ)
  • 12:30 GMT – US PCE Prices (2.3 %)
  • 13:55 GMT – US Michigan Consumer Expectations (75.0)
  • 13:55 GMT – US Michigan Consumer Sentiment (84.7)