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Asia Roundup: Japanese yen trades marginally lower after CPI data, Asian markets mixed, gold trades flat at $1,490 mark - Tuesday, October 29, 2019

Market Roundup

  • U.K. Prime Minister Boris Johnson failed to win support for an early general election.
     
  • EU has agreed to extend the deadline for Brexit until January 31, 2020.
     
  • Japan Tokyo core CPI y/y stands at 0.5 pct vs 0.5 pct previous release (expected 0.7).
     
  • Japan Tokyo CPI y/y stands at 0.4 pct vs 0.4 pct previous release.
     
  • South Korea manufacturing BSI index stands at 74 vs 73 previous release.
     
  • Thailand industrial production Sept y/y stands at -4.7 pct vs -4.40 pct previous release (expected -2.05).

Economic Data Ahead

  • (0300 ET/0700 GMT) UK nationwide HPI.
     
  • (0300 ET/0700 GMT) German import price index.
     
  • (0345 ET/0745 GMT) France consumer confidence.
     
  • (0400 ET/0800 GMT) Spain retail sales.
     
  • (0500 ET/0900 GMT) Italy PPI.
     
  • (0530 ET/0930 GMT) UK money supply, consumer credit, mortgage approvals, mortgage lending.
     
  • (0530ET/0930 GMT) South Africa unemployment rate.

Key Events Ahead

  • (0550 ET/0950 GMT) German Buba President Weidmann’s Speech.

FX Recap

USD: The U.S. dollar index that tracks the greenback against a basket of other currencies inched up 0.03% to 97.79.

EUR/USD: The euro trades flat against U.S. dollar and consolidates around 1.11 mark. It made intraday high at $1.1102 and low at $1.1091mark. A consistent close below $1.1079 will drag the parity down towards key supports around $1.1026 and $1.0852 levels respectively. Alternatively, reversal from key support will drag the parity higher towards key resistances around $1.1158, $1.1220, $1.1390, $1.1472, $1.1550, $1.1620 and $1.1820 marks respectively.

USD/JPY: The Japanese yen trades marginally lower against U.S. dollar after CPI, core CPI data. The pair is currently trading around 109.00 mark. It made intraday high at 109.06 and low at 108.92 levels. A sustained close above 108.93 is required to take the parity higher towards key resistances around 109.62, 112.60 and 113.98 marks respectively. Alternatively, a daily close below 108.38 will drag the parity down towards key support around 106.90 and 104.20 marks respectively.

GBP/USD: The pound trades flat against U.S. dollar and stabilizes above $1.2800 mark. The pair slipped after U.K. Prime Minister Boris Johnson failed to win support for an early general election. Now the EU has agreed to extend the deadline for Brexit until January 31, 2020. A sustained close below $1.2821 requires for dragging the parity down towards key support around $1.2644 and $1.2352 mark respectively. On the other side, key resistances are seen at $1.2911, 1.30, 1.3158 and 1.3226 levels respectively.

AUD/USD: The Aussie appreciates against U.S. dollar and currently trading around $0.6857 mark. The pair made intraday high at $0.6859 and low at $0.6835 levels. A consistent close below $0.6820 requires for downside rally. On the other side, a sustained close above $0.6867 will take the parity higher towards $0.6977 and $0.7076 levels respectively.

NZD/USD: The New Zealand dollar erases previous gain against U.S. dollar and stabilizes above $0.6350 mark. Pair made intraday high at $0.6375 and low at $0.6346. A sustained close above $0.6350 requires for the upside rally. Alternatively, current downside rally will take the parity down towards key supports around $0.6236 and $0.6196 levels respectively.

Equities Recap

Japan’s Nikkei was trading 0.43 pct higher at 22,965.50 points.

Australia’s S&P/ASX200 was trading 0.05 pct higher at 6,743.55 points.

Hong Kong's hang seng index was trading 0.42 percent lower at 26,776.48 points.

Taiwan stock was trading 0.06 percent lower at 11,308.54.55 points.

South Korea’s kospi was trading 0.04 percent lower at 2,091.47 points.

India’s NSE Nifty was trading 0.70 pct higher at 11,709.80 points while BSE sensex was trading 0.72 points higher at 39,520.78 points.

Commodities Recap

Crude oil was trading slightly down on Tuesday. Brent crude futures were trading marginally lower to $61.56 while U.S. crude was trading around $55.55 a barrel.

Gold was stabilizes below $1,500 mark on Tuesday and was currently trading around $1,492 mark. Gold faces strong resistance at $1,505 mark and sustained close above targets key resistances around $1,532 and $$1,552 mark respectively. Alternatively, a consistent close below $1,492 mark will drag the parity down towards $1,472 and $1,440 mark respectively.

Treasuries Recap

The Australian government bonds remained flat during Asian session of the second trading day of the week Tuesday amid a muted trading session that witnessed data of little economic significance. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, remained steady at 1.175 percent, the yield on the long-term 30-year bond hovered around 1.753 percent and the yield on short-term 2-year too traded flat at 0.829 percent.

The Japanese government bonds closed mixed Tuesday ahead of the country’s industrial production data for the month of September, scheduled to be released on October 30 by 23:50 GMT and the Bank of Japan’s (BoJ) monetary policy meeting, due to be held on October 31 will provide further direction to the debt market. At close, the yield on the benchmark 10-year JGB note, which moves inversely to its price, remained 11 basis points down at -0.111 percent, the yield on the long-term 30-year jumped 2 basis points to 0.450 percent and the yield on short-term 2-year suffered 20 basis points to -0.207 percent.

By Aarti Panchal
  • Market Data
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