America’s Roundup: Dollar firm on upbeat manufacturing data, Wall Street rallies, Gold falls 1%, Oil slides as demand fears outweigh hopes for bigger OPEC+ cuts-February 5th,2020

Market Roundup 

• US Redbook (YoY) 5.7%,5.5% previous

• US Redbook (MoM) 0.2%,0.1% previous

• New Zealand GlobalDairyTrade Price Index 5.7%,5.5% previous    

• US ISM NY Business Conditions 45.8%,39.1% previous  
 
• US Jan ISM-New York Index 866.9, 869.0 previous    

• US Jan  Durables Excluding Defense (MoM) (Dec) -2.4% , -2.5%  previous
    
• US Dec Factory orders ex transportation (MoM) 0.6%,0.2% previous    

• Australia AIG Construction Index 41.3, 38.9 previous

• Australia Employment Change (QoQ) (Q4) 0.0%,0.3% forecast, 0.2% previous  
 
Looking Ahead - Economic Data (GMT) 
   
• New Zealand ANZ Commodity Price Index (MoM) -2.8% previous 
   
• China Jan Services PMI 52.1, 49.4 previous

Looking Ahead - Events, Other Releases (GMT)

• No significant events

Currency Summaries

EUR/USD: The euro edged lower against the U.S. dollar on Tuesday, as China’s efforts to minimize the economic impact from the coronavirus epidemic spurred investors’ risk appetite . Beijing’s efforts included signing off on more government spending, tax relief and subsidies for virus-hit sectors.The outbreak has undermined the country’s economic activity as cities are locked down, with travel restrictions and businesses closed.The dollar index rose 0.19%, with the euro down 0.10% to $1.1044 .Immediate resistance can be seen at 1.1091 (21 DMA), an upside break can trigger rise towards 1.1126 (200 DMA).On the downside, immediate support is seen at 1.1032 (Daily low), a break below could take the pair towards 1.1000 (Psychological level).

GBPUSD: Sterling rebounded off six-week lows against the dollar on Tuesday after better-than-expected construction activity data offset fears of a hard Brexit fuelled by the government’s tough stance in European Union trade talks.The move reversed losses in early trading against the broadly stronger greenback which extended Monday’s 1% slump on renewed concern Britain may fail to clinch a trade deal by the end of an 11-month transition period.  By 1530 GMT, the pound was up 0.2% to $1.3025, not far from the day’s high of $1.3046. Immediate resistance can be seen at 1.3066(5 DMA), an upside break can trigger rise towards 1.3073 (J50 DMA).On the downside, immediate support is seen at 1.2938 (Daily low), a break below could take the pair towards 1.2900 (Psychological level).

USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Tuesday, with the loonie hovering near a two-month low it hit the previous day as concern lingered that China's coronavirus outbreak would hurt demand for commodities.The price of oil, one of Canada's major exports, fell as fears that energy demand would take a long-term hit from the outbreak offset prospects for more cuts in crude production from OPEC and its allies. U.S. crude oil futures were down 0.6% at 49.80 a barrel. At (1954 GMT), the Canadian dollar was trading nearly unchanged at 1.3283 to the greenback .Immediate resistance can be seen at 1.3236 (200 DMA), an upside break can trigger rise towards 1.3252 (Daily high).On the downside, immediate support is seen at 1.3257 (5 DMA), a break below could take the pair towards 1.3204(11 DMA).

USD/JPY: The dollar strenthed against the Japanese yen on Tuesday, as investors were encouraged that the Chinese government was taking measures to contain the coronavirus and limit its economic fallout. Currencies such as the Australian dollar and offshore Chinese yuan climbed. The People's Bank of China (PBOC) has pumped in hundreds of billions of dollars into the financial system this week. In the past two days, the PBOC has injected 1.7 trillion yuan ($242.74 billion) through open market operations. The dollar was last trading 0.5% against the yen to 109.48 yen.Strong resistance can be seen at 109.73 (26th Dec high), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 109.15 (50 DMA), a break below could take the pair towards 109.00 (Psychological level). 

Equities Recap

European shares clocked their biggest one-day gain in nearly four months on Tuesday as upbeat earnings updates from BP and Glencore along with China’s moves to support its markets lifted sentiment.

UK's benchmark FTSE 100 closed up by 1.55 percent, Germany's Dax ended up by 1.81 percent, France’s CAC finished the day up by 1.76 percent.

Wall Street’s main averages tumbled more than 1% on Friday as mixed corporate earnings added to worries over the impact of the coronavirus outbreak on global growth.
Dow Jones closed up by 1.44 percent, S&P 500 ended up by 1.50 percent, Nasdaq finished the down up by 2.10 percent.

Treasuries Recap

U.S. Treasury yields rose on Tuesday as investors grew more comfortable with risk, encouraged by steps taken by China in response to the coronavirus.The benchmark 10-year yield was up 8.4 basis points in afternoon trading at 1.6043%.

The benchmark 10-year yield was up 8.4 basis points in afternoon trading at 1.6043%.

Commodities Recap

Gold slid more than 1% on Tuesday as Chinese steps to mitigate the economic impact from the coronavirus epidemic drove some investors away from safe havens and back into riskier assets.

Spot gold was down 1.4% at $1,553.79 per ounce by 1555 GMT, after hitting its lowest since Jan. 22 at $1,550.75. U.S. gold futures fell 1.6% to $1,557.50.

.Oil prices edged lower on Tuesday as fears that energy demand would take a long-term hit from the coronavirus outbreak offset prospects for more cuts in crude production from OPEC and its allies.

Brent crude slid 4 cents to $54.41 a barrel by 1:40 p.m. EST (1840 GMT) while U.S. West Texas Intermediate (WTI) crude lost 9 cents to $50.02.