Menu

Search

  |   Market Roundups

Menu

  |   Market Roundups

Search

Asia Roundup: Kiwi steadies as oil gains on production cut hopes, dollar index off 1-week high as U.S. Treasury yields ease, Asian shares at decade peak - Wednesday, November 22nd, 2017

Market Roundup

  • Boxed in by slow growth, UK's Hammond readies budget
     
  • ECB's Coeure expects bond-buying pledge to be dropped by Sept
     
  • Britain to detail Brexit bill when EU agrees to move talks forward
     
  • EU and UK aim to strike Brexit divorce deal within 3 weeks - FT
     
  • Bank of England rate-setters differ over chance of wage pick-up
     
  • 'Very uncertain' Yellen still predicts U.S. inflation rebound
     
  • U.S. FCC chief plans to dump Obama-era 'net neutrality' policy
     
  • Trump defends Senate candidate Moore despite misconduct allegations
     
  • Ninth Australian lawmaker quits as citizenship crisis widens
     
  • BOJ gives early sign of lift-off with warnings on the costs of easing– Rtrs Analysis
     
  • China c. bank gov says to strengthen policy coordination nationwide-state media

Economic Data Ahead

  • No significant economic data releases

Key Events Ahead

  • N/A ECB Governing Council meeting
     
  • (0330 ET/0830 GMT) Riksbank to publish financial stability report - Stockholm
     
  • (0330 ET/0830 GMT) Riksbank's Ingves and Sandstedt participate in a conference - Stockholm

  • (1030 ET/1530 GMT) BoE's Cleland participates in an event - London
     
  • (1400 ET/1900 GMT) Fed's FOMC minutes

FX Beat

DXY: The dollar index declined, drifting away from a 1-week high hit in the previous session, in the wake of the weaker Treasury yields after the latest cautious remarks from the Fed Chair Yellen on the inflation outlook. The greenback against a basket of currencies traded 0.1 percent down at 93.91, having touched a high of 94.17 the day before, its highest since Nov. 14. FxWirePro's Hourly Dollar Strength Index stood at -58.95 (Bearish) by 0500 GMT.

EUR/USD: The euro consolidated within narrow ranges, as the sentiment around the Euro remains driven by politics, especially after the weekend’s failed German coalition talks, with CDU’s Merkel now expected to form a minority government or go for re-elections. The European currency traded flat at 1.1741, having touched a low of 1.1713 on Tuesday; its lowest since Nov. 14. FxWirePro's Hourly Euro Strength Index stood at -66.31 (Bullish) by 0400 GMT. Investors’ attention will remain on the Eurozone's preliminary consumer confidence, ahead of the U.S. durable orders, unemployment benefit claims and FOMC minutes. Immediate resistance is located at 1.1763 (5-DMA), a break above targets 1.1800. On the downside, support is seen at 1.1750, a break below could drag it lower 1.1720.

USD/JPY: The dollar eased, extending losses for the second straight session, as long-term U.S. Treasury yields continued to fall. The major was trading 0.2 percent down at 112.22, having hit a low of 111.88 the day before, its lowest since Oct. 16. FxWirePro's Hourly Yen Strength Index stood at 74.04 (Bullish) by 0400 GMT. Investors’ will continue to track broad-based market sentiment, ahead of the U.S. durable orders, unemployment benefit claims and FOMC minutes for further momentum. Immediate resistance is located at 112.70, a break above targets 113.09 (21-DMA). On the downside, support is seen at 112.10, a break below could take it near 111.88 (Nov. 20 Low).

GBP/USD: Sterling rallied, extending gains for the seventh straight session as investors focused on the UK budget statement in which finance minister Philip Hammond will have to balance calls for more spending against weaker growth. The major traded 0.1 percent up at 1.3254, having hit a high of 1.3279 on Monday, it’s highest since Nov. 2. FxWirePro's Hourly Sterling Strength Index stood at 103.13 (Highly Bullish) by 0400 GMT. Investors’ focus will remain on political developments, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.3280, a break above could take it near 1.3320. On the downside, support is seen at 1.3209 (5-DMA), a break below targets 1.3173 (21-DMA). Against the euro, the pound was trading 0.1 percent down at 88.58 pence, having hit a high of 88.42 pence the prior day, it’s highest since Nov. 10.

AUD/USD: The Australian dollar eased after rebounding from 5-month lows in the previous session on Reserve Bank of Australia Governor Philip Lowe comments, stating that it more likely the next move in interest rates would be up than down. The Aussie trades 0.1 percent down at 0.7567, having hit a low of 0.7532 the day before; it’s lowest since Jun. 14. FxWirePro's Hourly Aussie Strength Index stood at -91.01 (Slightly Bearish) by 0500 GMT. Immediate support is seen at 0.7521, a break below targets 0.7500. On the upside, resistance is located at 0.7608 (78.6% retracement of 0.7883 and 0.7532), a break above could take it near 0.7667 (61.8% retracement).

NZD/USD: The New Zealand dollar gained as investors digested a surprise increase in October domestic milk production and on expectations that an OPEC-led production cut will be extended beyond next March. The Kiwi trades 0.1 percent up at 0.6830, having touched a low of 0.6780 on Friday, its lowest level since June 2016. FxWirePro's Hourly Kiwi Strength Index was at 96.27 (Slightly Bullish) by 0500 GMT. Immediate resistance is located at 0.6858 (61.8% retracement of 0.6979 and 0.6780), a break above could take it near 0.6883 (21-DMA). On the downside, support is seen at 0.6780 (Nov. 17 Low), a break below could drag it lower 0.6740.

Equities Recap

Asian shares rose to a fresh 10-year peak, supported by gains in energy and technology sectors, while the greenback eased from 1-week high as the U.S. Treasury yield curve flattened to its lowest in a decade.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6 percent.

Tokyo's Nikkei gained 0.7 percent to 22,577.16 points, Australia's S&P/ASX 200 index advanced 0.5 percent to 5,994.50 points and South Korea's KOSPI rallied 0.4 percent to 2,540.51 points.

Shanghai composite index rose 0.5 percent to 3,427.66 points, while CSI300 index was trading 0.4 percent up at 4,233.27 points.

Hong Kong’s Hang Seng was trading 0.9 percent higher at 30,087.73 points. Taiwan shares added 0.8 percent to 10,865.13 points.

Commodities Recap

Crude oil prices rose to a 1-week high on the back of a reported fall in U.S. crude inventories and on expectations that an OPEC-led production cut will be extended beyond next March. International benchmark Brent crude was trading 0.5 percent up at $62.97 per barrel by 0410 GMT, having hit a high of $63.15 earlier, its highest since Nov. 13. U.S. West Texas Intermediate was trading 1.2 percent up at $57.74 a barrel, after rising as high as $57.77, its highest since Nov. 8.

Gold prices edged up as investors remained cautious ahead of the release of minutes from the U.S. Federal Reserve's last meeting, which could offer hints on the outlook for the central bank's monetary policy. Spot gold was 0.1 percent up at $1,280.14 per ounce by 0420 GMT, having touched a low of $1,274.36 on Monday, its lowest since Nov. 14. U.S. gold futures for December delivery were steady at $1,281.30.

Treasuries Recap

The 10-year U.S Treasury yield stood at 2.356 percent lower by 0.005 bps, while 5-year yield was 0.008 bps down at 2.098 percent.

The Japanese bonds gained following the Bank of Japan (BoJ) daily market operation ahead of the Thanksgiving holiday. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell 1 basis point to 0.023 percent, the yield on long-term 40-year also declined nearly 1 basis point to 0.975 percent and the yield on short-term 2-year slid ½ basis point at -0.201 percent.

The Australian bonds gained after Australian senator Skye Kakoschke-Moore resigned from the Parliament after she was confirmed having dual citizen. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell 2 basis points to 2.535 percent, the yield on the long-term 30-year note dipped 4 basis points to 3.294 percent and the yield on short-term 2-year fell 1/2 basis point to 1.786 percent.

The New Zealand bonds closed higher as a downward trend in prices continued in Global Dairy Trade (GDT) auction. At the time of closing, the yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell 3 basis points to 2.820 percent, the yield on 20-year note also dipped 2 basis points to 3.400 percent and the yield on short-term 2-year ended 1 basis point lower at 1.990 percent.

The Canadian government bond prices were higher across a flatter yield curve, with the two-year up 1.5 Canadian cents to yield 1.465 percent and the 10-year rising 29 Canadian cents to yield 1.920 percent.

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.