Market Roundup
- Australia’s export price index stands at -5.2 pct vs 1.3 pct previous release (expected -5.4).
- Australia’s import price index data stands at 0.7 pct vs 0.4 pct previous release (expected 0.0).
- South Korea’s manufacturing BSI index stands at 79 vs 75 previous release (expected 74).
- Kiwi trade balance stands at 547m vs -791M previous release (expected 100M).
Economic Data Ahead
- (0200 ET/0700 GMT) German import price index.
- (0300 ET/0800 GMT) Swiss KOF leading indicator.
- (0330 ET/0830 GMT) Hong Kong trade balance.
- (0355 ET/0855 GMT) German job data.
- (0400 ET/0900 GMT) Italy unemployment rate.
- (0430 ET/0930 GMT) UK consumer credit, money supply, mortgage lending.
- (0430 ET/0930 GMT) South Africa PPI.
- (0500 ET/1000 GMT) Euro zone business climate, consumer confidence, unemployment rate.
- (0600 ET/1100 GMT) Brazil IGP – M inflation index.
- (0630 ET/1130 GMT) Spain business confidence.
Key Events Ahead
- (0200 ET/0700 GMT) BOJ Deputy Governor Amamiya’s speech.
- (0300 ET/0800 GMT) ECB’s Enria’s speech.
- (0700 ET/1200 GMT) BOE interest rate decision.
FX Recap
USD: The U.S. dollar index that tracks the greenback against a basket of other currencies inched up 0.06% to 97.875.
EUR/USD: The euro trades flat against U.S. dollar and stabilizes above $1.1000 mark on Thursday. 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 $1.1009 will drag the parity down towards key supports around $1.0970, $1.0919 and $1.0852 levels respectively.
USD/JPY: The Japanese yen trades marginally higher on Thursday and currently trading around 108.90 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 flat against U.S. dollar ahead of BOE’s interest rate decision. The pair is currently consolidates around $1.3000 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 trades marginally lower despite robust export – import price index data. The Pair made intraday high at $0.6755 and low at $0.6731 mark. A consistent close below $0.6753 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 robust trade balance data. The pair is currently trading around $0.6508 mark. A sustained close above $0.6526 requires for the upside rally. Alternatively, a consistent close below $0.6526 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 1.97 pct lower at 22,933.50 points.
Australia’s S&P/ASX 200 was trading 0.33 pct lower at 7,008.50 points.
India’s NSE was trading 0.57 pct lower at 12,060.85 points and BSE sensex 0.56 pct lower at 40,969.43 points.
South Korea’s kospi was trading 1.80 pct lower at 2,146.06 points.
Hong Kong’s Hang seng was trading 2.00 pct lower at 26,600.50 points.
Taiwan’s TWII was trading 5.60 pct lower at 11,440.80 points.
China markets will remain close in observance of Spring Festival.
Commodities Recap
Gold hovers around $1,580 mark on Thursday. 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 depreciates on Thursday. Brent crude futures were down by 60 cents to $58.31. The West Texas Intermediate contract was down by 48 cents to $52.84 a barrel.
Treasuries Recap
The yield on Australia’s benchmark 10-year note, which moves inversely to its price, trades lower to 0.964 points, the yield on the long-term 15-year bond trades down to 1.055 points and the yield on short-term 2-year fell nearly 0.006 pct to 0.658 points.
The yield on the benchmark 10 - year JGB note, which moves inversely to its price, trades slightly down to -0.055 points, the yield on the long-term 30 - year fell 0.028 pct to 0.344 points and the yield on short-term 2 - year fell to -0.142 points.
