- Japan PM Abe - Will consider extra budget for farms, welfare.
- Japan September retail sales -0.2% y/y, +0.4% eyed, energy sales off large.
- US House Rules Committee advances budget deal.
- ECB Coeure - EZ inflation rise maybe more slow, could mean ECB deposit rate Cut, tools used will depend on what shocks ECB sees.
- IIF - Emerging markets see first weekly inflows since June.
- Australia Q3 CPI +0.5% q/q, +1.5% y/y, trimmed mean +0.3%, +2.1%, weighted median +0.3%, +2.2%, +0.6/+0.5/+0.5% q/q eyed, +1.7/+2.4/+2.5% y/y eyed.
- (0300 ET/0700 GMT) Germany Nov GFK consumer sentiment index, 9.4 eyed; last 9.6.
- (0300 ET/0700 GMT) Germany September import prices, -0.2% m/m eyed; last -1.5%.
- (0500 ET/0900 GMT) Norway September retail sales ex-autos, +0.2% m/m eyed; last -0.4%.
- (0500 ET/0900 GMT) Norway August labor force survey - unemployment, 4.4% eyed; last 4.3%.
- (0500 ET/0900 GMT) Norway Q3 industrial confidence index; last -8.0.
- (0500 ET/0900 GMT) Italy October consumer confidence index, 112.1 eyed; last 112.7.
- (0500 ET/0900 GMT) Italy October business confidence index, 104.1 eyed; last 104.2.
- (0830 ET/1230 GMT) US September goods trade balance - advance; last $67.19 bln deficit.
Key Events Ahead
- N/A ECB ChiefEcon Praet in Riga conference panel discussion.
- N/A Italy E6 bln 6-month BoT auction.
- N/A Sweden SEK 2 bln each 4.25% and 2.5% 2019 and 2025 bond auctions.
- N/A Norway NOK3 bln 1.75% 2025 government bond auction.
- (0430 ET/0830 GMT) Riksbank policy announcement, no change in -0.35% repo rate eyed.
- (0500 ET/0900 GMT) ECB/Estonia CB Hansson speaks after release of latest stability report.
- (0510 ET/0910 GMT) BoE Salmon speech at London conference.
- (0530 ET/0930 GMT) Germany E3 bln 1.0% 2025 Bund auction.
- (0530 ET/0930 GMT) ECB 91-day refinance, E18.8 bln allotment eyed, last E21.8 bln.
- (1045 ET/1445 GMT) ECB VP Constancio speech at Berlin FSR Conference '15.
- (1400 ET/1800 GMT) FOMC policy announcement, no change in core 0.125% Fed funds rate eyed.
- (1430 ET/1830 GMT) Ex-Fed Bernanke speech at LSE.
- (1600 ET/2000 GMT) RBNZ policy announcement, no change in 2.75% OCR eyed.
FX Recap
EUR/USD: Pair is trading marginally lower on Wednesday as the euro currency gave up its earlier gains amid a volatile trading session characterized by several moderate up and down swings. Yet another data-light European session ahead, with the second tier economic news expected to dominate amid light trading. German import prices and GFK consumer climate will be reported to fill in an otherwise quiet EUR calendar. It made intraday high at 1.1049 and low at 1.1025 levels. Initial support is seen around at 1.0972 and resistance at 1.1560 levels.
USD/JPY: Retail sales in Japan rose at a weaker pace than markets expected last month, shedding new light on the state of consumer confidence amid soft economic times. Sales rose 0.7% month-on-month in September, according to the Ministry of Economy, Trade and Industry (METI), coming in weaker than the forecast rise of 1.1%. Pair made intraday high at 120.54 and low at 120.24 levels. Initial resistance is seen at 123.20 and support is seen at 118.42 levels.
GBP/USD: Mixed data from the US was largely ignored as disappointing UK GDP data overshadowed American data to drive sterling lower. Britain's economy grew 0.5% on a quarter-to-quarter basis during Q3, missing estimates of 0.6% and after last quarter's 0.7%. Investor's attention will now shift to Wednesday's Federal Open Market Committee meeting. Pair made intraday high at 1.5315 and low at 1.5296 levels. Initial support is seen at 1.5107 and resistance is seen around 1.5725 levels.
NZD/USD: The RBNZ is widely expected to keep the OCR on hold at 2.75% on Thursday, but some economists suggest the bank should be cutting for the fourth time in a row, as the stronger NZD and a weaker economic outlook justify further easing. Pair is supported above $0.6700 levels. It made intraday high at 0.6775 and low at 0.6719 levels. Initial support is seen at 0.6235 and resistance at 0.6896 levels.
AUD/USD: The Australian dollar shed almost 1% against the greenback on Wednesday after the September-quarter CPI came in slightly weaker than expected, raising speculation that the RBA will cut interest rates to stoke inflation and growth. Headline inflation held at 1.5% in the September quarter, with the quarterly change in the CPI rising just 0.5%, below the 0.7% increase forecast by markets. Pair tumbled 0.89% to $0.7123 about an hour after the release from $0.7188 ahead of it, hitting a low of $0.7114. Pair made intraday high at 0.7206 levels and low around 0.7111 levels. Initial support is seen at 0.6908 and resistance at 0.7438 levels.
Equity Recap
Japan's benchmark Nikkei 225 index rose 0.37% to 18,846.95 points within the first few hours of trade on Wednesday; however, Tokyo's broader Topix gauge slipped 0.06% to 1,542.13 points.
Hong Kong's benchmark Hang Seng index shed 0.52% to trade at 23,019.28 points shortly after the opening bell, and mainland China's benchmark Shanghai Composite slid 0.44% to 3,419.38 points at the same time.
Korea's benchmark Kospi index fell 0.50% to 2,034.49 points this morning in Seoul.
The benchmark Australian S&P/ASX 200 index traded little down at 5,343.60 points in Sydney, with several big losses on the index.
New Zealand's benchmark S&P/NZX 50 index crept up 0.07% to 6,005.16 points this afternoon in Wellington.
Tokyo's Nikkei average closes up 0.67 pct at 18,903.02.
Australia's S&P/ASX 200 index closes down 0.14 pct at 5,338.60 points.
Treasury Recap
Thailand 13 bln baht, 13.65-year government bond average accepted yield 2.8350 pct.
New Zealand government bonds rose, sending yields 5 basis points lower towards the longer end of the curve.
Australian government bond futures powered up in a bullish steepening of the yield curve, with the three-year bond contract up 7 ticks to 98.250.
Commodity Recap
Gold retained small overnight gains on Wednesday, but caution prevailed ahead of a Federal Reserve policy statement later in the session as investors waited for clues on the timing of a U.S. rate hike. Spot gold was little changed at $1,167.05 an ounce by 0308 GMT. The metal had risen 0.3 percent in the previous session, snapping a four-day losing streak.
Oil was trading flat on Wednesday, following steep losses booked in the prior session, as the ongoing excess in crude supplies hurt prices. Futures for WTI rose 0.09% to trade at $43.24 per barrel, after slipping on Tuesday below $43 per barrel for the first time since August 28.
