Global Markets:
- Asian stock markets: Nikkei up 0.95 %, Shanghai Composite gained 0.30 %, Hang Seng fell 0.10 %, ASX 200 declined 0.70 %
- Commodities: Gold at $1318 (+0.15 %), Silver at $18.80 (+1.20 %), WTI Oil at $46.40 (+0.10 %), Brent Oil at $48.75 (+0.05 %)
- Rates: US 10 year yield at 1.58, UK 10 year yield at 0.64, German 10 year yield at -0.09
News & Data:
- Japan Industrial Production (MoM, Jul): 0.0% (est 0.80%, prev 2.30%)
- Japan Industrial Production (YoY, Jul): -3.80% (est -3.00%, prev -1.50%)
- Japan Construction Orders (YoY, Jul): -10.90% (prev -2.40%)
- Japan Housing Starts (YoY, Jul): 8.90% (est 7.40%, prev -2.50%)
- Japan Small Business Confidence (Aug): 46.30 (prev 47.80)
- Australia Private Sector Credit (MoM, Jul): 0.40% (est 0.40%, prev 0.20%)
- Australia Private Sector Credit (YoY, Jul): 6.00% (est 6.10%, prev 6.20%)
- New Zealand ANZ Business Confidence (Aug): 15.5 (prev 16)
- New Zealand ANZ Activity Outlook (Aug): 33.7 (prev 31.4)
- New Zealand M3 Money Supply (Jul, YoY): 6.30% (prev 5.90%)
- China Westpac/MNI Consumer Sentiment (Aug): 111.5 (prev 114.0)
- UK GfK Consumer Confidence (Aug): -7 (est -8, prev -12)
- UK Lloyds Business Barometer (Aug): 16 (prev 29)
- South Korea Industrial Production (MoM, Jul): 1.40% (est -0.60%, prev rev to -0.40% from -0.20%)
- South Korea Industrial Production (YoY, Jul): 1.60% (est 0.40%, prev 0.80%)
- PBOC fixes yuan at 6.6908 (vs. prev fix 6.6812, prev close 6.6820)
- Yuan fixed at lowest levels vs the USD since 20/Jul –BBG
Markets Update:
The US Dollar retraced some of its recent gains as risk appetite improved. The New Zealand Dollar was the best performing currency overnight and NZD/USD rallied from 0.7205 to a high of 0.7255. AUD/USD followed it higher and rose from 0.75 to 0.7530. Meanwhile, the Canadian Dollar remains under pressure as Oil prices continue to decline. USD/CAD declined slightly in Asia, but found good support at 1.3080.
USD/JPY remains well bid and the risk-on sentiment is providing it with some additional support. The pair traded as high as 103.22 overnight, a fresh one-month high. With 103.00 resistance cleared, the next level to watch is 104.00, followed by 105.00/20.
EUR/USD was quiet as usual, trading in a 1.1135-60 range. Meanwhile, GBP/USD rallied from 1.3065 to a high of 1.3115 after the Tokyo open.
Upcoming Events:
- 07:00 BST – German Retail Sales
- 07:45 BST – French CPI
- 08:55 BST – German Unemployment Rate
- 09:00 BST – Norway GDP
- 10:00 BST – Italian CPI
- 10:00 BST – Euro Zone CPI
- 13:15 BST – US ADP Nonfarm Employment Change
- 13:30 BST – Canadian GDP
- 14:45 BST – US Chicago PMI
- 15:00 BST – US Pending Home Sales
- 15:30 BST – US Crude Oil Inventories
