Market Roundup
• US Unit Labor Costs (QoQ) (Q3) -8.9% forecast ,9.0% previous
• US Nonfarm Productivity (QoQ) (Q3) 4.9%,10.6% previous
• US Redbook (YoY) 9.2% previous
• US Redbook (MoM) 1.3% previous
Looking Ahead Economic Data
•23:30 Australia Dec Westpac Consumer Sentiment 2.5% previous
•23:50 Japan Oct Core Machinery Orders (MoM) 2.8% forecast, -4.4% previous
•23:50 Japan Oct Core Machinery Orders (YoY) -11.3% forecast, -11.5% previous
•23:50 Japan M3 Money Supply 1,917.4T previous
•00:30 Australia Building Approvals (MoM) 3.8% previous
•01:30 China NovCPI (MoM) -0.2% forecast, -0.3% previou
•01:30 China Nov CPI (YoY) 0.8% forecast, 0.5% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro edged higher on Tuesday as upbeat economic sentiment data from Germany buoyed the euro. German investor sentiment soared more than expected in December on expectations that vaccines against the coronavirus would boost the outlook for Europe’s largest economy, a survey showed.The ZEW economic research institute said its survey of investors’ economic sentiment moved up to 55.0 from 39.0 in the previous month. Immediate resistance can be seen at 1.2132(38.2% fib), an upside break can trigger rise towards 1.2170 (23.6%fib).On the downside, immediate support is seen at 1.2090 (50 % fib), a break below could take the pair towards 1.2051(61.8% fib).
GBP/USD: Sterling declined against the dollar on Tuesday as growing fears of a no-deal weighed on sterling. British Prime Minister Boris Johnson said on Tuesday that Britain could abandon post-Brexit trade talks, a day after he agreed to meet the head of the European Commission in a last-ditch attempt to break the stalemate. With only days left to the end of the Brexit transition period, leaders have again failed to resolve their outstanding differences on a future trading relationship, sending the British currency hurtling to a near three-week low. Immediate resistance can be seen at 1.3384(5DMA), an upside break can trigger rise towards 1.3405 (23.6%fib).On the downside, immediate support is seen at 1.3298 (38.2%fib), a break below could take the pair towards 1.3210 (50%fib).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Tuesday, with the currency pulling back from an earlier two-and-a-half-year high as investors worried about the impact of rising global coronavirus cases on economic recovery. Canada is also seeing a resurgence in the virus. The latest spread opens a new front for the world's second-largest country by area as it prepares for a logistically difficult vaccination program with COVID-19 infections now threatening to overwhelm hospitals. The Canadian dollar was trading nearly unchanged at 1.2798 to the greenback, or 78.14 U.S. cents. Immediate resistance can be seen at 1.2837 (38.2%fib), an upside break can trigger rise towards 1.2898 (50%fib).On the downside, immediate support is seen at 1.2756 (23.6%fib), a break below could take the pair towards 1.2756 (Psychological level).
USD/JPY: The dollar edged higher against the Japanese yen on Tuesday as renewed U.S.-China tensions supported greenback. The United States on Monday imposed financial sanctions and travel ban on 14 Chinese officials over their alleged role in Beijing’s disqualification last month of elected opposition legislators in Hong Kong. An index tracking the dollar's value rose 0.1% to 90.978.The dollar was up 0.1% against the yen at 104.16 yen. Strong resistance can be seen at 104.12 (5DMA), an upside break can trigger rise towards 104.32 (50% fib).On the downside, immediate support is seen at 103.95 (21 DMA), a break below could take the pair towards 103.55(23.6%fib).
Equities Recap
European shares dipped on Tuesday, as a post-Brexit trade deal hung in the balance, while rising coronavirus cases spurred talks of stricter restrictions that could cause more economic pain.
UK's benchmark FTSE 100 closed up by 0.05 percent, Germany's Dax ended up by 0.06 percent, France’s CAC finished the day down by 0.23 percent.
U.S. stocks closed higher on Tuesday, with the S&P and Nasdaq setting record highs, in part due to a boost from the healthcare sector on positive COVID-19 vaccine news, while uncertainty over fresh fiscal stimulus held gains in check.
Dow Jones closed up by 0.35% percent, S&P 500 closed up by 0.28 % percent, Nasdaq settled up by 0.50% percent.
Treasuries Recap
Longer-term U.S. Treasury yields were lower on Tuesday as investors tried to judge how quickly vaccines could be distributed to fight the COVID-19 pandemic.
The benchmark 10-year yield was down 1.3 basis points in afternoon trading at 0.9146%.
Commodities Recap
Oil prices were little changed on Tuesday as the most populous U.S. state tightened its pandemic lockdown through Christmas and COVID-19 cases surged in the United States and Europe, counteracting optimism that arose over vaccine advancements.
Brent crude futures settled at $48.84 a barrel, gaining 5 cents. U.S. West Texas Intermediate (WTI) crude futures settled 16 cents lower at $45.60 a barrel.
Gold steadied near a two-week high on Tuesday as optimisim over the rollout of a COVID-19 vaccine countered the market impact of a subdued dollar and hopes for more fiscal stimulus.
Spot gold was little changed at $1,864.60 per ounce by 1300 GMT. Earlier, it touched its highest since Nov. 23 of $1,871.52.
