Market Roundup
- ANZ Business Outlook: NZ October survey show solid improvements in confidence levels
- NAB Australia's consumer confidence improves
Economic Data Ahead
- (0600 ET/1000 GMT) EZ Services Sentiment(Oct)
- (0600 ET/1000 GMT) EZ Consumer Confidence(Oct)
- (0600 ET/1000 GMT) EZ Industrial Confidence(Oct)
- (0600 ET/1000 GMT) EZ Business Climate(Oct)
- (0600 ET/1000 GMT) EZ Economic Sentiment Indicator(Oct)
Key Events Ahead
- (0845 ET/1245 GMT) ECB Interest Rate Decision
- (0845 ET/1245 GMT) ECB Deposit Rate Decision
- (0930 ET/1330 GMT) ECB Monetary Policy Statement and Press Conference
FX Beat
DXY: The dollar index held firm near a 1-week peak as escalating coronavirus cases in Europe stoked investor fears that fresh lockdowns would further hit the already fragile economic recovery. The greenback against a basket of currencies traded 0.02 percent up at 93.41, having touched a high of 93.64 on Wednesday, its highest since October 19.
EUR/USD: The euro steadied after tumbling to a 1-1/2 week low in the prior session on prospects of a national lockdown in Germany and France as COVID-19 deaths across Europe rose almost 40 percent in a week. The European Central Bank at its meeting is expected to resist pressure on Thursday to unveil new stimulus measures, but will likely pave the way for action in December. The European currency traded 0.05 percent higher at 1.1751, having touched a low of 1.1717 the day before, its lowest since October 19. Investors’ attention will remain on a series of economic data from the Eurozone economies, EZ Economic Sentiment Indicator and ECB Interest Rate Decision ahead of the U.S. unemployment benefit claims, Gross Domestic Product Annualized(Q3), Personal Consumption Expenditures Prices (QoQ)(Q3), Core Personal Consumption Expenditures (QoQ)(Q3), and pending home sales. Immediate resistance is located at 1.1772 (21-DMA), a break above targets 1.1789 (10-DMA). On the downside, support is seen at 1.1730, a break below could drag it below 1.1703.
USD/JPY: The Japanese yen eased after rising to a 1-month low in the previous session, as the Bank of Japan kept its monetary policy steady, while signalling that it has delivered enough stimulus for now. In the quarterly report, the BoJ trimmed its growth forecast but kept an upbeat outlook for a moderate recovery. The major was trading 0.05 percent up at 104.37, having hit a low of 104.11 on Wednesday, its lowest since September 21. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. unemployment benefit claims, Gross Domestic Product Annualized(Q3), Personal Consumption Expenditures Prices (QoQ)(Q3), Core Personal Consumption Expenditures (QoQ)(Q3), and pending home sales. Immediate resistance is located at 104.61 (5-DMA), a break above targets 104.83. On the downside, support is seen at 104.00, a break below could take it near at 103.88.
GBP/USD: Sterling gained, supported by Brexit developments in the past few weeks. Britain and the European Union have just over two months to reach a trade agreement before the status-quo transition period ends on Dec. 31. The major traded 0.3 percent higher at 1.3018, having hit a low of 1.2916 on Wednesday, it’s highest since October 20. Investors’ attention will remain on the geopolitical developments, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.3050, a break above could take it near 1.3082. On the downside, support is seen at 1.2950, a break below targets 1.2924. Against the euro, the pound was trading 0.2 percent up at 90.30 pence, having hit a high of 90.14 the day before, it’s highest since October 21.
AUD/USD: The Australian dollar rebounded from an over 1-week low after data showed Australia's consumer confidence published by the National Australia Bank improved to -10 in the third quarter from the preceding quarter's -15. The Aussie trades 0.4 percent up at 0.7070, having hit a high of 0.7158 on Friday, it’s highest since October 15. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.7093 (10-DMA), a break above could take it near 0.7108. On the downside, support is seen at 0.7020, a break below targets 0.7004.
NZD/USD: The New Zealand dollar surged after ANZ Business Outlook survey results for October showed solid improvements in confidence levels from the previous month. The Kiwi traded 0.2 percent higher at 0.6651, having touched a high of 0.6724 on Friday, its highest level since September 21. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6676 (5-DMA), a break above could take it near 0.6704. On the downside, support is seen at 0.6621, a break below could drag it below 0.6605.
Equities Recap
Asian shares declined as investors tried to get a grip on fears that fresh lockdowns could derail a recovery from the COVID-19 pandemic.
MSCI’s broadest index of Asia-Pacific shares outside Japan slumped 0.6 percent.
Tokyo's Nikkei fell 0.4 percent to 23,331.94 points, Australia's S&P/ASX 200 index slumped 1.6 percent to 5,960.30 points. South Korea's KOSPI eased 0.8 percent to 2,326.67 points.
Shanghai composite index rose 0.1 percent to 3,272.73 points, while CSI 300 index traded 0.8 percent up at 4,772.92 points.
Hong Kong’s Hang Seng traded 0.7 percent lower at 24,537.05 points. Taiwan shares shed 1.05 percent to 12,662.91 points.
Commodities Recap
Crude oil prices steadied after tumbling to a 4-month low in the prior session amid the prospect of tighter short-term supply with two-thirds of U.S. output shut in the Gulf of Mexico as Hurricane Zeta slammed Louisiana. International benchmark Brent crude was trading 0.2 percent up at $39.12 per barrel by 0534 GMT, having hit a low of $38.72 on Wednesday, its lowest since June 15. U.S. West Texas Intermediate was trading 0.3 percent higher at $37.47 a barrel, after falling as low as $36.99 on Wednesday, its lowest since October 2.
Gold prices held firm after plunging as much as 2 percent in the previous session in the absence of signs of any imminent U.S. fiscal stimulus measures to ease the economic blow from the COVID-19 pandemic. Spot gold was trading 0.3 percent higher at $1,882.42 per ounce by 0551 GMT, having hit a low of $1869.46 on Wednesday, its lowest since September 28. U.S. gold futures were up 0.2 percent at $1,882.60.
Treasuries Recap
The U.S. Treasury yields rose, with the benchmark 10-year note yield trading at 0.783 percent and the 30-year yield at 1.570 percent.
