Market Roundup
- Australia employment change July at 41.1K vs 0.5K previous release (expected 14.2K).
- Australia unemployment rate stood flat at 5.2 pct.
- Japan revised industrial production m/m at -3.3 pct vs -3.6 pct previous release.
- South Korea, India, Italy and France markets will remain close for the day.
Economic Data Ahead
- (0430 ET/0830 GMT) UK core retail sales m/m, previous 0.9 pct, expected -0.2 pct.
- (0430 ET/0830 GMT) UK retail sales m/m, previous 1.0 pct, expected -0.2 pct.
- (0600 ET/1000 GMT) Euro reserve assets total, previous 770.65B.
- (0830 ET/1230 GMT) U.S. retail sales m/m, previous 0.4, expected 0.3 pct.
- (0830 ET/1230 GMT) U.S. Philly Fed manufacturing index, previous 21.8, expected 10.0.
Key Events Ahead
- No major key events scheduled for the day.
FX Recap
USD: The U.S. dollar index that tracks the greenback against a basket of other currencies inched slightly down 0.08% to 97.91.
EUR/USD: The euro trades marginally higher and currently trading around $1.1150 mark. It made intraday high at $1.1153 and low at $1.1132 mark. A consistent close below $1.1138 will drag the parity down towards key supports around $1.1075, $1.1026 and $1.0852 levels respectively. Alternatively, reversal from key support will drag the parity higher towards key resistances around $1.1220, $1.1390, $1.1472, $1.1550, $1.1620 and $1.1820 marks respectively.
USD/JPY: The Japanese yen trades flat against U.S. dollar, and consolidates around 105.95 mark. It made intraday high at 106.03 and low at 105.70 levels. A sustained close above 106.70 is required to take the parity higher towards key resistances around 107.56, 108.52, 109.62, 112.60 and 113.98 marks respectively. Alternatively, a daily close below 105.29 will drag the parity down towards key support around 104.20 mark.
GBP/USD: The pound trades almost flat against U.S. dollar and stabilizes above $1.20 mark. A sustained close below $1.2022 requires for dragging the parity down towards key support around $1.1920 and $1.1754 mark respectively. On the other side, key resistances are seen at $1.2226, $1.2383, $1.2576 and $1.2772 levels respectively.
AUD/USD: The Aussie rises against major peers on robust employment data. The pair made intraday high at $0.6783 and low at $0.6745 levels. A consistent close below $0.6747 requires for downside rally. On the other side, a sustained close above $0.6802 will take the parity higher towards $0.6977 and $0.7076 levels respectively.
NZD/USD: The New Zealand dollar falls gradually against U.S. dollar and currently stabilizes below $0.6480 mark. A sustained close above $0.6480 requires for the upside rally. Alternatively, key support was seen at $0.6434 mark.
Equities Recap
Japan’s Nikkei was trading 1.68 pct lower at 20,320 mark.
Australia’s S&P/ASX200 was trading 2.66 pct lower at 6,421.55 points.
Hong Kong's hang seng index was trading 0.37 percent lower at 25,209.48 points.
Taiwan stock was trading 0.99 percent lower at 10,324.62 points.
South Korea and India markets will remain close for the day.
Commodities Recap
Oil prices were trading marginally lower on Thursday after the U.S. Energy Information Administration (EIA) reported a crude inventory build for a second week in a row. U.S. Crude Oil WTI Futures dropped 0.4% to $54.99. International Brent Oil Futures lost 0.6% to $59.12.
Gold reverses previous gain against U.S. dollar and currently touched $1,510 mark. Pair made intraday high at $1,524 and low at $1,510 mark. Sustained close above $1,515 requires for the upside rally. Alternatively, reversal from key resistance will drag the parity down towards $1,497 and $1,445 marks respectively.
Treasuries Recap
The Australian 10-year government bond yield hit a record low during Asian trading session Thursday, as signs of a global economic recession stampede investors’ risk appetite. This comes in despite a promising report of the country’s employment report for the month of July, released early today. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, slumped 5-1/2 basis points to 0.892 percent, the yield on the long-term 30-year bond plunged nearly 9-1/2 basis points to 1.457 percent while the yield on short-term 2-year traded flat at 0.735 percent.
The Japanese government bonds jumped Thursday on increased expectations the Bank of Japan (BoJ) will further ease monetary policy, on rising fears of a global economic downturn, with the U.S. treasury yield curve barely 2 basis points away from an inversion. The yield on the benchmark 10-year JGB note, which moves inversely to its price, plunged 23-1/2 basis points to -0.234 percent, the yield on the long-term 30-year suffered 4-1/2 basis points to 0.155 percent and the yield on short-term 2-year slumped nearly 28 basis points to -0.279 percent
