Market Roundup
- South Korea’s manufacturing BSI index y/y stands at 75 vs 74 pct previous release.
- South Korea’s CPI stands at 0.7 pct vs 0.2 pct previous release (expected 0.6).
- China’s manufacturing PMI stands flat at 50.2 vs expected 50.1 pct.
- China’s non – manufacturing PMI stands at 53.5 vs 54.4 previous release (expected 54.2).
Economic Data Ahead
- (0430 ET/0930 GMT) UK housing equity withdrawals.
- (0500 ET/1000 GMT) Brazil long term interest rate.
- (0600 ET/1100 GMT) South Africa total vehicle sales.
- (0630 ET/1130 GMT) India Federal fiscal deficit.
- (0700 ET/1200 GMT) India current account, foreign debt, infrastructure output.
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 down 0.05% to 96.70.
EUR/USD: The euro strengthens outstandingly against U.S. dollar and touches $1.1214 mark on Tuesday. The pair is currently trading around $1.1206 mark. A sustained close above $1.1198 will drag the parity higher towards key resistances around $1.1220, $1.1390, $1.1472, $1.1550, $1.1620 and $1.1820 marks respectively. On the other hand, a consistent close below $1.1075 will drag the parity down towards key supports around $1.1050, $1.1017, $1.0919 and $1.0852 levels respectively.
USD/JPY: The Japanese yen rises gradually against U.S. dollar. The pair is currently trading around 108.68 mark. A sustained close above 109.62 is required to take the parity higher towards key resistances around 110.50, 112.60 and 113.98 marks respectively. Alternatively, a daily close below 108.87 will drag the parity down towards key support around 108.40, 106.90 and 104.20 marks respectively.
GBP/USD: The Pound trades flat against U.S. dollar and stabilizes above $1.31 mark. A sustained close below $1.3110 requires for dragging the parity down towards key support around $1.2968, $1.2820, $1.2644 and $1.2352 mark respectively. On the other side, key resistances are seen at $1.3134, $1.3335, $1.3422 and $1.3515 levels respectively.
AUD/USD: The Aussie rises drastically against U.S. dollar and hits fresh 5 – month high at $0.7008 mark. Pair made intraday high at $0.7008 and low at $0.6992 mark. A consistent close below $0.6993 requires for downside rally towards $0.6921, $0.6838 and $0.6704 mark respectively. On the other side, a sustained close above $0.6993 will take the parity higher towards $0.7002, $0.7076 and $0.7122 levels respectively.
NZD/USD: The Kiwi continues to appreciate on Tuesday and hits fresh 5 – month high at $0.6738 mark. The pair is currently trading around $0.6730 mark. A sustained close above $0.6727 requires for the upside rally. Alternatively, a consistent close below $0.6727 will take the parity down towards key supports around $0.6665, $0.6502, $0.6424, $0.6323, $0.6236 and $0.6196 levels respectively.
Equities Recap
Japanese banks will be closed in observance of the 4-day Bank Holiday.
South Korea, Hong Kong and Australia banks will be closed in observance of New Year’s evening.
India’s NSE was trading 0.40 pct lower at 12,207.50 points and BSE sensex points 0.42 pct lower at 41,387.40 points.
Commodities Recap
Gold rises remarkably on Tuesday and touches $1,524 mark. A sustained close above $1,514 requires for the upside rally. On the other side, a consistent close below $1,510 will drag the parity down towards key supports around $1,490, $1,472, $1,458, $1,440, $1,422 and $1,407 mark respectively. On the top side, key resistances are seen at $1,517, $1,532 and $1,558 mark respectively.
Oil price trades stable on Tuesday. Brent crude futures for March delivery were at $66.66 a barrel, down 1 cent. Brent for February delivery closed on Monday at $68.44. U.S. West Texas Intermediate (WTI) crude for February was down 2 cents at $61.65. Brent oil has gained about 22% and WTI has risen around 38% in 2019.
Treasuries Recap
The yield on Australia’s benchmark 10-year note, which moves inversely to its price, trades higher to 1.372 percent, the yield on the long-term 15-year bond trades flat to 1.481 percent and the yield on short-term 2-year fell nearly 0.004 pct to 0.928 percent.
The yield on the benchmark 10 - year JGB note, which moves inversely to its price, trades slightly down to -0.012 points, the yield on the long-term 30 - year fall -0.001 pct to 0.411 points and the yield on short-term 2 - year fell to -0.128 points.
