Market Roundup
- China Sep Trade balance (USD), 28.47 bln vs 41.99 bln, forecast 39.50 bln
- China Sep Exports y/y, 8.1% vs 5.5%, forecast 8.8%
- China Sep Imports y/y, 18.7% vs 13.3%, forecast 13.5%
- UK BCC - Economy shows few signs of comeback as rate decision nears
- Kuroda says BOJ to keep easy policy, tread different path from Fed, ECB
- Australia's central bank warns highly indebted vulnerable to rate rises
- White House says it can't lawfully pay Obamacare subsidies
- New Zealand kingmaker party to hold key board meeting on Monday
- MAS opens door to 2018 tightening
- U.S. domestic stock funds win cash for first time in six weeks -Lipper
- Foreign CB US debt holdings -$5.671 bln to $3.360 trln Oct 11 week
- Treasuries -$6.594 bln to $3.033 trln, agencies +$66 mln to $263.05 bln
Economic Data Ahead
- (0245 ET/0645 GMT) Switzerland Producer/Import Price
- (0400 ET/0800 GMT) Italy Consumer Prices Final
- (0400 ET/0800 GMT) Italy CPI (EU Norm) Final MM
Key Events Ahead
- N/A BOE’s Carney participates in IMF meetings in Washington
- N/A ECB's Draghi and Coeure participate in the World Bank Group and the IMF meeting
- (0530 ET/0930 GMT) ECB's Mersch speaks in Luxembourg
- (0605 ET/1005 GMT) Great Britain Stg0.5/Stg2.0/Stg2.0 bln for 1/3/6 month auction
- (0800 ET/1200 GMT) Germany’s Schaeuble and Bundesbank’s Weidmann speak in Washington
- (1015 ET/1415 GMT) ECB's Constancio speaks in Washington
- (1045 ET/1445 GMT) Riksbank's Skingsley speaks in Washington
- (1410 ET/1810 GMT) BOE's Saporta speaks in Washington
- (1610 ET/2010 GMT) ECB's Lautenschlager speaks in Washington
FX Beat
DXY: The dollar index declined on speculation that further tightening by the U.S. Federal Reserve will proceed at a slow pace. The greenback against a basket of currencies traded 0.1 percent down at 92.98, having touched a low of 92.80 the day before, its lowest since Sept. 26. FxWirePro's Hourly Dollar Strength Index stood at -79.16 (Slightly Bearish) by 0500 GMT.
EUR/USD: The euro rose after easing from an over 2-week high in the previous session, as the greenback eased due to the concerns that some of the FOMC members showed within Wednesday's minutes in regards to persistently low inflation. The European currency traded 0.1 percent up at 1.1844, having touched a high of 1.1879 on Thursday, its highest since Sept. 25. FxWirePro's Hourly Euro Strength Index stood at 68.45 (Bullish) by 0400 GMT. Investors’ attention will remain on series of data from the Eurozone economies, ahead of U.S. retail sales, consumer price index and FOMC official's speeches. Immediate resistance is located at 1.1900, a break above targets 1.1940. On the downside, support is seen at 1.1794 (5-DMA), a break below could drag it near 1.1773 (10-DMA).
USD/JPY: The dollar eased, extending previous session losses as investors awaited U.S. inflation data to estimate the likelihood of the Federal Reserve hiking interest rates again this year. The major was trading 0.1 percent down at 112.15, having hit a low of 111.99 on Tuesday, its lowest since Sept. 26. FxWirePro's Hourly Yen Strength Index stood at -99.48 (Slightly Bearish) by 0400 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. retail sales, consumer price index and FOMC official's speeches for further momentum. Immediate resistance is located at 112.49 (5-DMA), a break above targets 112.82. On the downside, support is seen at 111.99 (Oct. 10 Low), a break below could take it near 111.65.
GBP/USD: Sterling extended gains for the fifth consecutive session on news that the European Union could offer Britain a two-year transitional Brexit deal and help in avoiding Hard Brexit. The major traded 0.1 percent up at 1.3275, having hit a high of 1.3290 the day before, its highest since Sept. 4. FxWirePro's Hourly Sterling Strength Index stood at 75.41 (Slightly Bullish) by 0400 GMT. Investors’ focus will remain on series of U.S. fundamental drivers, amid a lack of economic data from the UK docket. Immediate resistance is located at 1.3355 (21-DMA), a break above could take it near 1.3400. On the downside, support is seen at 1.3215 (10-DMA), a break below targets 1.3178 (5-DMA). Against the euro, the pound was trading 0.1 low at 89.25 pence, having hit a low of 90.32 pence on Thursday, its lowest since Sept. 14.
AUD/USD: The Australian dollar rose to a fresh 1-week high despite the Reserve Bank of Australia's cautious tone and a weaker-than-expected China trade data release. The Aussie trades 0.2 percent up at 0.7835, having hit a high of 0.7842 earlier, it’s highest since Oct. 5. FxWirePro's Hourly Aussie Strength Index stood at 29.01 (Neutral) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7805 (10-DMA), a break below targets 0.7781 (5-DMA). On the upside, resistance is located at 0.7879 (21-DMA), a break above could take it near 0.7900.
NZD/USD: The New Zealand dollar steadied after rising to a 1-week high in the previous session, amid broad-based U.S. dollar weakness across the board, as dovish FOMC minutes and Fed speak continued to weigh negatively on the greenback. The Kiwi trades 0.2 percent up at 0.7140, having touched a high of 0.7145 on Thursday, its highest level since Oct. 5. FxWirePro's Hourly Kiwi Strength Index was at 50.04 (Bullish) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.7170, a break above could take it near 0.7200. On the downside, support is seen at 0.7100 (Oct 10 Low), a break below could drag it till 0.7055 (Oct. 10 Low).
Equities Recap
Asian shares rallied to a 10-year high, boosted by expectations of robust global growth, while the dollar traded near 2-week lows, ahead of series of U.S. economic data and Federal Reserve officials' speeches.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 percent.
Tokyo's Nikkei rose 0.9 percent to 21,150.71 points, Australia's S&P/ASX 200 index gained 0.3 percent to 5,814.20 points and South Korea's KOSPI fell 0.2 percent to 2,470.53 points.
Shanghai composite index rose 0.05 percent to 3,387.79 points, while CSI300 index was trading 0.2 percent up at 3,919.31 points.
Hong Kong’s Hang Seng was trading 0.01 percent lower at 28,453.52 points. Taiwan shares added 0.1 percent to 10,724.09 points.
Commodities Recap
Crude oil prices gained as both U.S. crude production and inventories declined, pointing towards a rebalancing market. International benchmark Brent crude was trading 0.3 percent up at $56.57 per barrel by 0413 GMT, having hit a low of $55.04 on Monday, its weakest since Sept. 19. U.S. West Texas Intermediate was trading 0.02 percent lower at $50.94 a barrel, after falling as low as $49.11 on Monday, its lowest since Sept. 13.
Gold prices steadied after rising to an over 2-week high in the previous session, as investors awaited key U.S. inflation data for clues on the outlook for potential hikes in U.S. interest rates. Spot gold rose 0.2 percent at $1,295.62 an ounce at 0442 GMT, having touched its highest level since Sept. 27 at $1,297.39 in the previous session. U.S. gold futures for December delivery were flat at $1,296.10 per ounce.
Treasuries Recap
The 10-year U.S Treasury yield stood at 2.328 percent higher by 0.005 bps, while 5-year yield was 0.008 bps up at 1.948 percent.
The Australian bonds rallied on the last trading day of the week after the Reserve Bank of Australia (RBA) struck a cautious tone over the country’s rising household debt in its Financial Stability Report for the month of October, published early today. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell 1 basis point to 2.81 percent, the yield on the 15-year note also slid nearly 1 basis point to 3.09 percent and the yield on short-term 2-year traded flat at 1.94 percent.
The Japanese government bonds remained flat in silent trading session as investors remained sidelined in any major trading activity amid lack of significant economic data. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slid nearly 1 basis point to 0.06 percent, the yield on long-term 30-year hovered around 0.87 percent and the yield on short-term 2-year traded flat at -0.14 percent.
