Menu

Search

  |   Market Roundups

Menu

  |   Market Roundups

Search

Asia Roundup: Aussie gains on upbeat jobs data, greenback rebounds on U.S. Treasury Secretary Steven Mnuchin's comments, Asian shares surge - Thursday, October  17th, 2019

Market Roundup

  • Australia unemployment rate eases
     
  • RBNZ dovish as inflation slows
     
  • Oil fall on signs of large U.S. stock build
     

Economic Data Ahead

  • (0400 ET/0800 GMT) Italy Global Trade Balance August
     
  • (0400 ET/0800 GMT) Italy Trade Balance EU August
     
  • (0430 ET/0830 GMT) UK retail sales YY September
     
  • (0430 ET/0830 GMT) UK retail sales MM September
     
  • (0500 ET/0900 GMT) EZ construction output w.d.a. YoY August
     
  • (0500 ET/0900 GMT) EZ construction output s.a. MoM August
     

Key Events Ahead

  • No significant event scheduled

FX Beat

DXY: The dollar index steadied after tumbling to a near 5-week low in the previous session after U.S. Treasury Secretary Steven Mnuchin said that trade negotiators are working on nailing down a phase 1 trade deal text for their presidents to sign next month. The greenback against a basket of currencies traded 0.05 percent up at 98.17, having touched a low of 97.90 on Wednesday, its lowest since September 13.

EUR/USD: The euro rose, hovering towards a 1-month peak hit in the previous session, after French central bank Governor Francois Villeroy de Galhau stated that the European Central Bank will implement its September stimulus package in full despite a rare public disagreement, but needs to clarify the symmetric nature of its inflation target at its upcoming policy review. The European currency traded flat at 1.1075, having touched a high of 1.1085 on Wednesday, its highest since September 16. Investors’ attention will remain on a series of data out of Eurozone economies and EZ construction output, ahead of the U.S. building permits, housing starts, unemployment benefit claims, industrial production, capacity utilization and Fed officials' speeches. Immediate resistance is located at 1.1098, a break above targets 1.1116. On the downside, support is seen at 1.1034 (5-DMA), a break below could drag it below 1.1000.

USD/JPY: The dollar declined, extending previous session losses after data released yesterday showed U.S. retail sales fell for the first time in seven months in September, indicating that manufacturing-led weakness could be spreading to the broader economy. The major was trading down at 108.74 having hit a high of 108.89 on Tuesday, its highest since August 1. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. building permits, housing starts, unemployment benefit claims, industrial production, capacity utilization and Fed officials' speeches. Immediate resistance is located at 108..99 (July 31 High), a break above targets 109.31 (August 1 High). On the downside, support is seen at 108.48 (5-DMA), a break below could take it near at 108.02.

GBP/USD: Sterling eased after rising to a 5-month peak in the prior session amid contradictory headlines about whether Britain and the European Union were on the verge of agreeing a Brexit deal. The major traded 0.1 percent down at 1.2816, having hit a high of 1.2877 on Wednesday, it’s highest since May 21. Investors’ attention will remain on the development surrounding Brexit, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2900, a break above could take it near 1.2943. On the downside, support is seen at 1.2747, a break below targets 1.2708. Against the euro, the pound was trading 0.2 percent down at 86.41 pence, having hit a high of 85.97 earlier, it’s highest since May 9

AUD/USD: The Australian dollar rallied after domestic employment data showed 14,700 net new jobs were added in September, matching forecasts, with full-time positions rising to 26,200, while jobless rate eased to 5.2 percent, from a 1-year peak of 5.3 percent. The Aussie trades 0.4 percent up at 0.6787, having hit a high of 0.6810 on Friday, it’s highest since September 19. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.6710, a break below targets 0.6671. On the upside, resistance is located at 0.6805, a break above could take it near 0.6829 (September 5 High).

NZD/USD: The New Zealand dollar consolidated within narrow ranges, after dovish comments from a top central banker outweighed a slight upside surprise on domestic inflation. RBNZ deputy governor Geoff Bascand stated that further rate cuts might be needed to bolster growth, despite consumer price inflation rising 0.7 percent in the third quarter. The Kiwi trades flat at 0.6291, having touched a low of 0.6240 on Wednesday, its lowest level since October 2. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6348 (September 25 High), a break above could take it near 0.6391 (September 16 High). On the downside, support is seen at 0.6258, a break below could drag it below 0.6215.

Equities Recap

Asian shares gained as the soft U.S. sales data pointed to signs that the U.S. economy was beginning to show signs of weakness.

Tokyo's Nikkei gained 0.1 percent to 22,491.00 points, Australia's S&P/ASX 200 index declined 0.8 percent to 6,684.70 points and South Korea's KOSPI fell 0.4 percent to 2,074.52 points.

Shanghai composite index rose 0.05 percent to 2,979.74 points, while CSI 300 index traded 0.2 percent up at 3,928.00 points.

Hong Kong’s Hang Seng traded 0.6 percent higher at 26,833.59 points. Taiwan shares added 0.2 percent to 11,186.88 points.

Commodities Recap

Crude oil prices eased after industry data showed a larger-than-expected build-up in stocks in the United States, although comments by U.S. Treasury Secretary Steven Mnuchin on a U.S.-China trade deal limited losses. International benchmark Brent crude was trading 0.1 percent down at $59.00 per barrel by 0423 GMT, having hit a high of $60.66 on Friday, its highest since September 30. U.S. West Texas Intermediate was trading 0.05 percent higher at $52.94 a barrel, after rising as high as $54.91 on Friday, its highest since September 30.

Gold prices steadied as weak United States retail sales data fanned concerns that the country’s economy may be feeling the effects of the long-drawn trade war with China. Spot gold traded flat at $1,488.26 per ounce at 0428 GMT, having touched a low of $1,473.88 on Friday, its lowest since October 1. U.S. gold futures rose 0.1 percent to $1,495.60.

Treasuries Recap

The Australian government bonds slumped during Asian trading session after trade tensions between the United States and China spurred disturbance amongst the market investors amid disappointment from the country’s domestic labour market report for the month of September, released early today. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, jumped nearly 2-1/2 basis points to 1.077 percent, the yield on the long-term 30-year bond also surged nearly 2-1/2 basis points to 1.664 percent and the yield on short-term 2-year traded 2 basis points higher at 0.750 percent.

By Lactus Fernandes
  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.