Menu

Search

  |   Market Roundups

Menu

  |   Market Roundups

Search

Asia Roundup: Aussie rebounds as unemployment rate declines, greenback rallies on hawkish Fed minutes, sterling bulls' eye EU summit - Thursday, October 18th, 2018 

Market Roundup

  • Trump reluctant to abandon Riyadh over missing journalist, wants evidence
     
  • Despite Trump criticism, Fed sees need for more rate hikes
     
  • U.S. government refrains from calling China a currency manipulator
     
  • U.S. Treasury triples potential credit line to Mexico
     
  • May seeks to reassure EU leaders on Brexit deal
     
  • S.Korea holds rates amid growth risks, trade tensions
     
  • BOJ's Kuroda offers slightly brighter view on inflation
     
  • Japan Sep Exports YY, -1.2%, 1.9% f’cast, 6.6% prev
     
  • Japan Sep Imports YY, 7.0%, 13.7% f’cast, 15.4% prev, 15.3% rsvd
     
  • Japan Sep Trade Balance Total Yen, 139.6 bln, -50.0 bln f'cast, -444.6 bln prev, -438.4 bln rsvd
     
  • Australia Sep Employment, 5.6k, 15.0k f’cast, 44.0k prev, 44.6 rsvd
     
  • Australia Sep Unemployment Rate, 5.0%, 5.3% f’cast, 5.3% prev

Economic Data Ahead

  • (0430 ET/0830 GMT) Great Britain Sep Retail Sales MM, -0.4% f’cast, 0.3% prev
     
  • (0430 ET/0830 GMT) Great Britain Sep Retail Sales Ex-Fuel MM, -0.4% f’cast, 0.3% prev
     
  • (0430 ET/0830 GMT) Great Britain Retail Sales YY, 3.6% f’cast, 3.3% prev
     
  • (0430 ET/0830 GMT) Great Britain Retail Sales Ex-Fuel YY, 3.7% f’cast, 3.5% prev

Key Events Ahead

  • (0400 ET/0800 GMT) ECB Governing Council member Ewald Nowotny gives a speech on "the future of financing and currencies" in Vienna.
     
  • (0400 ET/0800 GMT) A special event to mark the launch of series VIII 50-krone and 500-krone banknotes will be held at RS Noatun in Horten.
     
  • (0915 ET/1315 GMT) Fed St. Louis President James Bullard gives presentation on the U.S. economy and monetary policy before the Economic Club of Memphis
     
  • (0930 ET/1330 GMT) Latvian Finance Minister Dana Reizniece-Ozola, Lituanian Finance Minister Migle Tuskiene and Estonian Deputy Secretary-General for Financial Policy Marten Ross speak alongside European Commission's Valdis Dombrovskis on financial stability and capital markets in the Baltics in London.
     
  • (0930 ET/1330 GMT) Bank of Slovenia Deputy Governor Primoz Dolenc speaks at a financial conference in Ljubljana.
     
  • (1215 ET/1615 GMT) Fed Vice Chairman for Supervision, Randal Quarles, speaks before an Economic Club of New York luncheon.
     
  • N/A ECB Executive Board Member Benoit Coeure and ECB President Mario Draghi participates in the Euro Summit in Brussels.
     
  • N/A BoJ to hold its quarterly meeting of regional branch managers where Governor Haruhiko Kuroda will deliver a speech at the outset the meeting in Tokyo
     

FX Beat

DXY: The dollar index rallied to an over 1-week peak as the U.S. benchmark 10-year treasury yields climbed to 3.2 percent. The greenback against a basket of currencies trades 0.05 percent up at 95.68, having touched a high of 95.71, its highest since October 10. FxWirePro's Hourly Dollar Strength Index stood at 51.85 (Bullish) by 0500 GMT.

EUR/USD: The euro eased to a 1-week low below the 1.1500 handle, as increasing concerns over Italy's draft budget weighed heavily on investor sentiment. The European currency traded 0.05 percent down at 1.1499, having touched a low of 1.1498, its lowest since October 10. FxWirePro's Hourly Euro Strength Index stood at -105.43 (Highly Bearish) by 0500 GMT. Investors’ attention will remain on a series of data from the Eurozone economies, ahead of the U.S. unemployment benefit claims and FOMC members speeches. Immediate resistance is located at 1.1545 (October 10 High), a break above targets 1.1610 (October 12 High). On the downside, support is seen at 1.1463 (October 4 Low), a break below could drag it till 1.1490 (October 9 Low),.

USD/JPY: The dollar rose to a 1-week peak after minutes from the U.S. Federal Reserve's September meeting affirmed expectations that the central bank is likely to continue hiking interest rates this year. However, prevailing global trade tensions dragged the pair lower. The major was trading 0.1 percent up at 112.73, having hit a low of 111.62 on Monday, its lowest since September 13. FxWirePro's Hourly Yen Strength Index stood at 38.15 (Neutral) by 0500 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. unemployment benefit claims and FOMC memebers speeches. Immediate resistance is located at 112.87 (September 21 High), a break above targets 113.13 (September 26 High). On the downside, support is seen at 112.04 (September 20 Low), a break below could take it lower 111.62 (September 15 Low).

GBP/USD: Sterling slumped, extending the previous session, after the European Union's chief Brexit negotiator Michel Barnier on Wednesday stated that more time was needed to secure an exit deal for Britain.  The major traded 0.2 percent down at 1.3087, having hit a low of 1.3082 on Monday; it’s lowest since October 9. FxWirePro's Hourly Sterling Strength Index stood at -48.37 (Neutral) 0500 GMT. Immediate resistance is located at 1.3150 (October 9 High), a break above could take it near 1.3215 (October 10 High). On the downside, support is seen at 1.3062 (September 24 Low), a break below targets 1.3028 (October 8 Low). Against the euro, the pound was trading 0.2 percent down at 87.81 pence, having hit a low of 88.25 on Monday, it’s lowest since October 5.

AUD/USD: The Australian dollar bounced back after data showed the country's unemployment rate dropped to 5.0 percent in September, its lowest since 2012. The Aussie trades 0.3 percent up at 0.7127, having hit a high of 0.7159 on Wednesday; it’s highest since October 3. FxWirePro's Hourly Aussie Strength Index stood at 69.13 (Bullish) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7097 (10-DMA), a break below targets 0.7054 (October 9 Low). On the upside, resistance is located at 0.7167 (21-DMA), a break above could take it near 7223 (September 18 High).

Equities Recap

Asian shares eased as the greenback surged to a 1 week-high after the minutes of the Federal Reserve's latest meeting showed board members agreeing on the need to raise borrowing costs further.

MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.2 percent.

Tokyo's Nikkei declined 0.8 percent to 22,664.57 points, Australia's S&P/ASX 200 index slumped 0.05 percent to 5,942.40 points and South Korea's KOSPI plunged 0.9 percent to 2,149.81 points.

Shanghai composite index fell 2.2 percent to 2,505.82 points, while CSI300 index traded 0.3 percent down at 3,062.24 points.

Hong Kong’s Hang Seng traded 0.6 percent lower at 25,321.37 points. Taiwan shares shed 0.3 percent to 9,953.73 points.

Commodities Recap

Crude oil prices declined, having tumbled to an over 3-week in the previous session, following a surge in the U.S. crude stockpiles. International benchmark Brent crude was trading 0.3 percent down at $80.07 per barrel by 0442 GMT, having hit a low of $79.15 on Wednesday, its lowest since September 24. U.S. West Texas Intermediate was trading 0.4 percent down at $69.77 a barrel, after falling as low as $69.47 on Thursday, its lowest since September 18.

Gold prices rebounded, after easing in the previous session on a firmer dollar after minutes of the Federal Reserve's September meeting reinforced expectations of a tighter U.S. monetary policy. Spot gold was 0.1 percent up at $1,223.23 an ounce at 0451 GMT, having hit a high of $1233.14 on Monday, its highest since July 26. U.S. gold futures were down 0.1 percent at $1,226.40 an ounce.

Treasuries Recap

The Australian government bonds slumped during Asian session after the country’s unemployment rate for the month of September surprisingly cheered market expectations. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, jumped 3-1/2 basis points to 2.748 percent, the yield on the long-term 30-year bond surged 3-1/2 basis points to 3.219 percent and the yield on short-term 2-year too traded 3-1/2 basis points higher at 2.075 percent.

The New Zealand bonds closed lower amid a muted trading session that witnessed data of little economic significance as investors remain keen to watch China’s gross domestic product for the third quarter of this year, scheduled to be released on October 19 by 02:00GMT. At the time of closing, the yield on the benchmark 10-year note, which moves inversely to its price, rose nearly 1 basis point to 2.718 percent, the yield on the long-term 20-year note remained tad higher at 3.025 percent and the yield on short-term 2-year closed flat at 1.855 percent.

The Canadian government bond prices were lower across a steeper yield curve in sympathy with U.S. Treasuries, with the 10-year falling 15 Canadian cents to yield 2.520 percent.

  • Market Data
Close

Welcome to EconoTimes

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