Market Roundup
- Australia’s CPI q/q stands at 0.7 pct vs 0.5 pct previous release (expected 0.6).
- Australia’s trimmed mean CPI q/q remains unchanged at 0.4 pct.
- South Korea’s consumer confidence stands at 104.2 vs 100.5 previous release (expected 97.5).
Economic Data Ahead
- (0200 ET/0700 GMT) U.K. nationwide HPI m/m, y/y.
- (0200 ET/0700 GMT) German import price index, GFK consumer climate.
- (0245 ET/0745 GMT) France consumer confidence.
- (0300 ET/0800 GMT) Spain retail sales.
- (0400 ET/0900 GMT) Italy business confidence, consumer confidence.
- (0400 ET/0900 GMT) Swiss ZEW expectations.
- (0400 ET/0900 GMT) Euro zone money supply, loans to NFC.
- (0500 ET/1000 GMT) Italy PPI.
- (0630 ET/1130 GMT) India M3 money supply.
Key Events Ahead
- No key events scheduled for the day.
FX Recap
USD: The U.S. dollar index that tracks the greenback against a basket of other currencies inched up 0.01% to 97.84.
EUR/USD: The euro continuous to fall against U.S. dollar and stabilizes above $1.1000 mark on Wednesday. A sustained close above $1.1022 will drag the parity higher towards key resistances around $1.1062, $1.1142, $1.1390, $1.1472, $1.1550, $1.1620 and $1.1820 marks respectively. On the other hand, a consistent close below $1.1022 will drag the parity down towards key supports around $1.0970, $1.0919 and $1.0852 levels respectively.
USD/JPY: The Japanese yen trades flat on Wednesday and currently trading around 109.13 mark. A sustained close above 109.14 is required to take the parity higher towards key resistances around 109.65, 110.20, 112.60 and 113.98 marks respectively. Alternatively, a daily close below 108.89 will drag the parity down towards key support around 108.72, 108.40, 106.90 and 104.20 marks respectively.
GBP/USD: The Pound trades marginally lower against U.S. dollar and hovers around $1.3000 mark. The pair is currently stabilizes below $1.3020 mark. A sustained close below $1.2935 requires for dragging the parity down towards key support around $1.2820, $1.2644 and $1.2352 mark respectively. On the other side, key resistances are seen at $1.3157, $1.3335, $1.3422 and $1.3515 levels respectively.
AUD/USD: The Aussie strengthens in early Asia on robust CPI, core CPI data. Pair made intraday high at $0.6777 and low at $0.6754 mark. A consistent close below $0.6760 requires for downside rally towards $0.6708 and $0.6670 mark respectively. On the other side, a sustained close above $0.6762 will take the parity higher towards $0.6818, $0.6903, $0.6942, $0.7076 and $0.7122 levels respectively.
NZD/USD: The Kiwi depreciates in early Asia and remains well supported below $0.6550 mark. The pair is currently trading around $0.6532 mark. A sustained close above $0.6546 requires for the upside rally. Alternatively, a consistent close below $0.6543 will take the parity down towards key supports around $0.6502, $0.6424, $0.6323, $0.6236 and $0.6196 levels respectively.
Equities Recap
Japan’s Nikkei was trading 0.57 pct higher at 23,345.50 points.
Australia’s S&P/ASX 200 was trading 0.63 pct higher at 7,038.50 points.
India’s NSE was trading 0.53 pct higher at 12,120.85 points and BSE sensex 0.50 pct higher at 41,148.43 points.
South Korea’s kospi was trading 0.67 pct higher at 2,191.06 points.
Hong Kong’s Hang seng was trading 2.42 pct lower at 27,265.50 points.
Taiwan and China markets will remain close.
Commodities Recap
Gold depreciates drastically on Wednesday and slips below $1,570 mark. A sustained close above $1,581 requires for the upside rally. On the other side, a consistent close below $1,567 will drag the parity down towards key supports around $1,547, $1,530, $1,511, $1,490, $1,472 and $1,458 mark respectively. On the top side, key resistances are seen at $1,588, $1,597 and $1,611 mark respectively.
Oil price reverses previous loss and trades noticeably higher on Wednesday. Brent crude futures were up by 78 cents to $59.59. The West Texas Intermediate contract was up by 72 cents to $54.20 a barrel.
Treasuries Recap
The yield on Australia’s benchmark 10-year note, which moves inversely to its price, trades higher to 1.031 points, the yield on the long-term 15-year bond trades up to 1.121 points and the yield on short-term 2-year rose nearly 0.044 pct to 0.719 points.
The yield on the benchmark 10 - year JGB note, which moves inversely to its price, trades slightly down to -0.033 points, the yield on the long-term 30 - year rose 0.001 pct to 0.381 points and the yield on short-term 2 - year fell to -0.123 points.
