Market Roundup
• Fed's Powell to speak on Wednesday
• Gold on track for fourth straight daily decline
• CPI, retail sales data due this week
• US Redbook (MoM) 0.1%,0.3% previous
• US Redbook (YoY) 5.0%, 5.5% previous
Looking Ahead - Economic Data (GMT)
• 21:45 New Zealand Oct FPI (Mom) 0.0% previous
• 23:30 Australia Nov Westpac Consumer Sentiment -5.5% previous
• 23:50 Japan Oct PPI (YoY) -0.3% forecast , -1.1% previous
• 23:50 Japan Oct PPI (MoM) 1.2% forecast, -0.3% previous
• 00:30 Australia Wage Price Index (YoY) (Q3) 2.3% forecast, 2.3% previous
• 00:30 Australia Wage Price Index (QoQ) (Q3) 0.5%,0.6% previous
• 01:00 New Zealand RBNZ Interest Rate Decision 0.75%,1.00% previous
Looking Ahead - Events, Other Releases (GMT)
• 01:00 New Zealand RBNZ Monetary Policy Statement
• 01:00 New Zealand RBNZ Rate Statement
• 02:00 New Zealand RBNZ Press Conference
Currency summaries
EUR/USD: The euro was little changed against the U.S. dollar on Tuesday, after U.S. President Donald Trump in a speech offered no new details on the state of the administration's trade war with China. Speaking at The Economic Club of New York, Trump instead took aim once again at the Federal Reserve, bemoaning the fact that the United States has higher interest rates than other developed economies. The speech was highly anticipated by the foreign exchange market, which has moved with trade headlines. The paucity of details on trade in itself was seen by some as a pessimistic signal.At (GMT 19:00), the euro was down 0.17 percent at $1.1010.The dollar index, which measures the greenback against six major currencies, was 0.11 percent higher at 98.32. Immediate resistance can be seen at 1.1037 (5 DMA), an upside break can trigger rise towards 1.1087 (11 DMA).On the downside, immediate support is seen at 1.1000 (Psychological level), a break below could take the pair towards 1.0964 (Sep 23rd low).
GBP/USD: The British pound strengthened against the dollar on Tuesday, as the prospect of a hung parliament in UK elections eased slightly . In a significant boost for Prime Minister Boris Johnson ahead of the Dec. 12 election, Brexit Party leader Nigel Farage said his party was standing down candidates in seats won by the Conservatives in 2017 and would instead focus on challenging anti-Brexit politicians. The pound rallied to as high as $1.2896 on the news, which the market had interpreted as reducing the probability of a hung- or Labour led- government. The currency later eased to $1.2851.Immediate resistance can be seen at 1.2877 (20 DMA), an upside break can trigger rise towards 1.2979 (Nov 1st high).On the downside, immediate support is seen at 1.2764 (300 DMA), a break below could take the pair towards 1.2700 (200 DMA).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Tuesday, recovering from an earlier one-month low, as oil prices rose and investors awaited a speech by U.S. President Donald Trump for clues on the outlook for trade conflicts. U.S. crude oil futures were up 0.8% at $57.33 a barrel, buoyed by trade hopes and lower inventories at a U.S. oil hub. At (1902 GMT), the Canadian dollar was trading 0.1% higher at 1.3223 to the greenback .Immediate resistance can be seen at 1.3259 (Daily High), an upside break can trigger rise towards 1.3300 (Psychological level).On the downside, immediate support is seen at 1.3205 (50 DMA), a break below could take the pair towards 1.3170 (11 DMA).
USD/JPY: The U.S. dollar declined against the yen on Tuesday, as violent protests in Hong Kong over the weekend kept investors anxious, increasing demand for safe haven assets. Hong Kong police fired tear gas in the heart of the Central financial district on Tuesday and at two university campuses after territory-wide transport disruptions wreaked commuter havoc in the Chinese-ruled city.At (GMT 20:18),the dollar was 0.05 percent lower versus the Japanese yen at 108.99. Strong resistance can be seen at 109.49 (Nov 8th high), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 108.74 (21 DMA), a break below could take the pair towards 108.10 (50 DMA).
Equities Recap
European shares climbed back to a four-year high on Tuesday as positive German investor sentiment data and a slew of upbeat earnings lifted the mood, but Spanish stocks lagged after socialist and far-left parties joined forces to form a coalition.
The UK's benchmark FTSE 100 closed up by 0.50 percent, Germany's Dax ended up by 0.65 percent, and France’s CAC finished the down by 0.44 percent.
The S&P 500 and Nasdaq indexes rose to record highs on Tuesday as trade-sensitive technology stocks gained ahead of a much-awaited speech by President Donald Trump, which was likely to provide some clarity on the U.S.-China tariff talks.
At (GMT 20:21),Dow Jones was up by 0.08 percent, S&P 500 was up 0.04 percent, Nasdaq was up by 0.10 percent.
Treasuries Recap
U.S. Treasury yields held just below three-month highs on Tuesday as investors waited on a speech by U.S. President Donald Trump for new indications on how close the United States and China are to agreeing to the first phase of a trade deal.
Benchmark 10-year notes were last up 1/32 in price to yield 1.931%. The yields rose to 1.973% on Thursday on optimism a trade deal would be reached, which was the highest since August 1.
Commodities Recap
Gold slipped on Tuesday to its lowest in more than three months on increased appetite for riskier assets, while U.S. President Donald Trump failed to provide any information on the trade deal with China in his speech.
Spot gold slipped 0.1% to $1,453.70 per ounce as of 1:47 p.m. EST (1847 GMT), having touched its lowest since Aug. 5 earlier.U.S. gold futures settled down 0.2% at $1,453.70 per ounce.
Oil prices ended Tuesday little changed after paring gains of about 1% following a speech from U.S. President Donald Trump that offered few new details about Washington’s trade talks with Beijing.
Brent crude futures ended the session down 12 cents at $62.06 a barrel after trading between $62.85 and $61.82. West Texas Intermediate (WTI) crude futures settled down 6 cents at $56.80 a barrel.
