Global Markets:
- Asian stock markets: Nikkei fell 2.36 %, Shanghai Composite fell 2.22%, Hang Seng fell 0.79 %, ASX200 fell 1.28 %
- Commodities: Gold at $1142.31 (+0.65 %), Silver at $14.62 (+0.23 %), WTI Oil at $47.74(-2.97%), Brent Oil at $52.72 (-2.64 %)
- Rates: US 10 year yield at 2.19% UK 10 year yield at 1.96%, German 10 year yield at 0.80%
News & Data:
- Japanese FinMin Aso: Want To Talk About Chinese Economy At G-20 Meeting, Need To Examine Structural issues In The Economy – RTRS
- Australia Building Approvals (MoM) Jul: 4.2% (exp 3.0% prev rev -5.2%) -Australia Building Approvals (YoY) Jul: 13.4% (exp 10.1% prev 8.6%)
- Australia Net Exports Of GDP (Q2): -0.60% (exp -0.30% prev 0.50%)
- China Official Manufacturing PMI (Aug): 49.7 (exp 49.7 prev 50.0)
- China Official Non-Manufacturing PMI (Aug): 53.4 (prev 53.9)
- Japanese EcoMin Amari: Recovery In CapEx Is Still Weak, Want A Discssion With The Private Sector
- South Korea Exports (YoY) Aug: -14.7% (exp -5.9% prev rev -3.4%) -South Korea Imports (YoY) Aug: -18.3% (exp -15.0% prev -15.3%)
- South Korea Trade Balance (Aug): USD 4347 Mln (exp USD 6077 Mln prev rev USD 7723 Mln)
- Australia AiG PMI (Aug): 51.7 (prev 50.4)
- Morgan Stanley Cuts S&P 500 Price Target – MW
- New Zealand Terms Of Trade (QoQ) Q2: 1.3% (exp -2.5% prev rev 1.4%)
- US Dallas Fed Manufacturing Activity (Aug) -15.8 (est. -3.8, prev. -4.6)
- US CHICAGO PMI AUG: 54.4 (EST. 54.5, PREV. 54.7)
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EURUSD Net Shorts Lowest in 13 Months According to Futures data
Major currencies update: Asian equity indices are opening lower, following Monday’s descent, dragging the USD/JPY lower again during today’s Asian session, with spot now at 120.78, down 40 pips from an opening price of 121.22. The two consecutive down-days so far established in the pair has printed a short-term swing high of 121.74 from last Friday’s high, of which should be watched for nearby resistance. The pair is currently testing intraday support at 120.60. The EUR/USD also is following in suit with the yen, with the dollar down versus the euro as the pair climbs to the current spot price of 1.1270. Furthermore, a swing low of 1.1160 has also been defended in yesterday’s trading, despite intraday pressure lower to 1.1180. Immediate resistance for today remains at 1.1300. On the side of the GBP/USD, the pair is currently trading within a 100 pip range 1.5440, and 1.5340, lacking any trending characteristics thus far, with spot currently sub 1.5400.
Commodity currencies update: The AUD/USD, like the pound, is also directionless thus far, continuing its range-trading behaviour established since the 26th of August last week, as the pair awaits today’s RBA Rate decision and announcement. The NZD/USD however has continued downside trade, with spot driven lower to 0.6375 currently, after a mild upside recovery in today’s Asian session of trading. The move lower yesterday has been seen by market watchers to have been linked to a continued decline in business confidence indicators. Immediate resistance for the pair is seen at 0.6400-0.6410, with support as today’s low of 0.6320.
Upcoming Events:
- 5:30 BST – RBA Rate Decision and Announcement
- 8:15 BST – Spanish Manufacturing PMI
- 8:55 BST – German Unemployment Change
- 9:30 BST – UK Manufacturing PMI
- 10:00 BST – Europe Unemployment Rate
- 13:30 BST – Canada GDP m/m
- 15:00 BST – United States ISM Manufacturing PMI
