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Asia Roundup: Japanese yen marginally lower despite robust retail sales data, Asian markets mixed, gold stabilizes above $1,140  - Wednesday, December 28, 2016

Market Roundup

  • Japan November industrial output +1.5% m/m, +1.6% eyed, Dec eyed at +2.0%, previous forecast -0.6%, Jan eyed at +2.2%, government revises up sector assessment.
     
  • Japan November retail sales +1.7% y/y, only +0.6% eyed, first rise in 9 months, cars-clothing sales up.
     
  • Japan’s wholesale vegetable prices to hit record in ’16 – Nikkei.
     
  • Reuters DealTalk - Japan Inc could claim edge in overseas deals as China faces restraints, firms have over $3 trln in cash.
     
  • Reuters Breaking Views – China’s central bank will lose its long time leader.
     
  • China to relax restrictions on foreign investment access more in ’17 –Xinhua.
     
  • SAFE - Bigger $25.4 bln service trade deficit in Nov, Oct $23.3 bln – Xinhua.
     
  • China Jan-Nov state-owned firms’ profits +2.8%, end-Nov liabilities +10.9%.

Economic Data Ahead

  • (0200 ET/0700 GMT) Switzerland November UBS consumption indicator; last 1.49.
     
  • (0300 ET/0800 GMT) Spain November retail sales; last +2.2% y/y.
     
  • (0330 ET/0830 GMT) Spain November household lending; last +7.3% y/y.
     
  • (0400 ET/0900 GMT) Italy December manufacturing business confidence index; last 102.0.
     
  • (0430 ET/0930 GMT) UK November BBA mortgage approvals; last 40.85k.
     
  • (1000 ET/1500 GMT) US November pending home sales, +0.5% m/m eyed; last +0.1%, index 110.0.
     
  • (1030 ET/1530 GMT) US December Dallas Fed services revenues index; last 13.7.
     
  • (1030 ET/1530 GMT) US December Dallas Fed Texas service sector outlook index; last 12.6.

Key Events Ahead

  • (0500 ET/1000 GMT) Italy E6.5 bln 6-month treasury bill auction.

FX Recap

USD: The dollar index which measures the greenback against a basket of six major peers, last stood at 102.97, down 0.1 percent and below its 14-year peak of 103.650 touched on Dec. 20. The dollar index has risen 5.3 percent since the U.S. election, propelled by expectations that Trump would drive deregulation and fiscal stimulus.

EUR/USD: The euro was last up 0.1 percent against the greenback at $1.0470. The common currency marked a 14-year low of $1.0352 on December 20 and concerns about Italian banks and upcoming elections in France and Germany look set to keep investors on edge into the start of 2017. Intraday bias remains neutral till the time pair holds key resistance at 1.05 marks. Immediate resistance was seen at $1.0539 level. A daily close below 1.0448 will drag the parity down towards 1.0382 levels.  

USD/JPY: The yen showed little reaction to Japan's industrial production, retail sales data. The dollar inched up against the yen on Wednesday after upbeat U.S. economic data reinforced expectations for economic growth under Donald Trump's Administration and more rate hikes by U.S. Federal Reserve next year. A sustained close above 118.17 is required to take the parity higher towards 120.00 marks. Alternatively, a daily close below 116.95 will drag the parity down towards 114.81 levels.

GBP/USD:   The sterling was marginally higher against U.S. dollar in early hours of Asia. Short term bias remains neutral till the time pair holds key support at 1.2240 levels.  On the other side, current upside movement will take the parity higher towards key resistance around 1.2378 levels.

AUD/USD:  The Australian dollar edged up 0.2 percent to $0.7201, just above a seven-month trough of $0.7160 touched last week. Pair made intraday high at 0.7213 and low at 0.7181. A consistent close below 0.7170 will drag the parity towards key supports around 0.7142 and 0.7058 marks respectively. On the top side, key resistances are seen at 0.7260, 0.7312 and 0.7369 marks.

NZD/USD: The New Zealand kiwi inched up 0.3 percent to $0.6912, having plumbed $0.6863 on December 23; it is lowest since June.

Equities Recap

South Korea’s Kospi was trading 0.73 percent lower at 2,027.72 points.

Tokyo's Nikkei was trading 0.02 percent lower at 19,399.26 points.

Australia’s S&P ASX 200 was trading 0.88 percent higher 5,677 points.

Shanghai composite index to open flat at 3,113.77 points and China's CSI300 index to open flat at 3,315.75 points.

Taiwan stocks open up 0.1 pct at 9,120.90 points.

India’s NSE Nifty was trading around 0.15 percent higher at 8,044.70 points and BSE Sensex was trading at 0.11 percent higher at 26,243 points.

Commodities Recap

International Brent crude futures were trading down 13 cents, or 0.2 percent, at $55.96 a barrel at 0312 GMT after closing the previous session up 93 cents. U.S. benchmark West Texas Intermediate crude oil prices were down 7 cents at $53.83 per barrel after settling up 88 cents at $53.90 a barrel in the previous session.

Gold rose for the fourth straight session on Wednesday, on a technically-driven rebound in thin volume, amid a slightly weaker dollar. Spot gold edged 0.2 percent higher to $1,141.45 an ounce by 0324 GMT. Bullion rose to a near two-week high of $1,148.98 on Tuesday. U.S. gold futures were up 0.3 percent at $1,142.40 per ounce.

Treasuries Recap

New Zealand government bonds eased, sending yields about 1 basis points higher. Ten year yields rose to 3.49 percent, the highest in nearly a year.

Australian government bond futures dropped to one-year lows, with the three-year bond contract off 2 ticks at 97.850. The 10-year contract eased half a tick to 97.0850, while the 20-year contract was steady at 96.4250.

U.S. 10-year treasuries yield at 2.561 percent vs U.S. close of 2.563 percent on Tuesday.

 

 

 

 

 

 

 

 

 

 

 

 

 

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Fintech Week Chicago

April 26 15:30 UTC Released

BRForeign Exchange Flows*

Actual

7.444 bln

Forecast

Previous

7.049 bln

April 26 14:30 UTC Released

BRBank Lending MM*

Actual

0.2 %

Forecast

Previous

-0.1 %

April 26 23:00 UTC 306306m

KRGDP Growth QQ*

Actual

Forecast

0.7 %

Previous

0.5 %

April 26 23:00 UTC 306306m

KRGDP Growth YY*

Actual

Forecast

2.6 %

Previous

2.4 %

April 26 23:50 UTC 356356m

JPForeign Bond Investment

Actual

Forecast

Previous

-796.2 bln JPY

April 26 23:50 UTC 356356m

JPForeign Bond Investment

Actual

Forecast

Previous

-796.2 bln JPY

April 26 23:50 UTC 356356m

JPForeign Invest JP Stock

Actual

Forecast

Previous

315.2 bln JPY

April 27 00:00 UTC 366366m

JPBOJ Rate Decision*

Actual

Forecast

-0.1 %

Previous

-0.1 %

April 27 00:00 UTC 366366m

BRCentral Govt Balance

Actual

Forecast

-8.5 bln

Previous

-26.263 bln

April 27 01:30 UTC 456456m

AUExport Prices QQ*

Actual

Forecast

Previous

12.4 %

Fintech Week Chicago
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