Market Roundup
•Australia GDP (QoQ) (Q2) 0.2%, 0.2%forecast, 0.1% previous
•Australia GDP GDP (YoY) (Q2) 1.0%, 1.0% forecast, 1.3% previous
•Australia GDP Capital Expenditure (Q2) -0.1%, -0.9% previous
•Australia GDP Chain Price Index (Q2) -0.9%,0.8% previous
•Australia GDP Final Consumption (Q2) 0.3%, 0.6% previous
•China Aug Caixin Services PMI 51.6,51.9 forecast,52.1 previous
Looking Ahead Economic Data (GMT)
•07:15 Spanish Aug Services PMI 54.8 forecast, 53.9 previous
•07:45 Italian Aug Services PMI 52.4 forecast, 51.7 previous
•07:55 German Aug Services PMI 51.4 forecast, 52.5 previous
•08:00 EU Aug S&P Global Composite PMI 51.2 forecast, 50.2 previous
•08:00 EU Aug Services PMI 53.3 forecast, 51.9 previous
•08:30 UK Aug Composite PMI 53.4 forecast, 52.8 previous
•08:30 UK Aug Services PMI 53.3 forecast, 52.5 previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro weakened against the dollar on Wednesday as traders braced for a data-heavy week, including Friday's U.S. payrolls report that could shape the path of interest rate cuts from the Federal Reserve. Economists surveyed expect the non-farm payrolls report on Friday to show an increase of 165,000 jobs in August, up from a rise of 114,000 in July. Before that, job openings data on Wednesday and the ADP employment and jobless claims reports on Thursday will be in the spotlight. Data on Tuesday showed that U.S. manufacturing contracted at a moderate pace in August amid some improvement in employment. The euro rose 0.1% to $1.1054, following a 0.26% decline in the previous session. Immediate resistance can be seen at 1.1077(38.2%fib), an upside break can trigger rise towards 1.1132(Aug 20th high).On the downside, immediate support is seen at 1.1022(50%fib), a break below could take the pair towards 1.0968 (61.8%fib).
GBP/USD: The pound dipped against the dollar on Wednesday as investors took profits ahead of a crucial U.S. jobs report later this week. This year, the pound has been the strongest major currency against the dollar, appreciating by 3.1%, compared to a modest 0.2% rise for the euro. This performance is largely driven by expectations that UK interest rates will remain elevated for a longer period than in the eurozone or the United States. With the Bank of England's next monetary policy meeting scheduled in two weeks, the derivatives market suggests that traders foresee a minimal chance of an additional 25-basis point cut following June’s reduction. At (GMT 03:48) Sterling edged down to $1.3107, following a 0.23% decline overnight. Immediate resistance can be seen at 1.3178(38.2%fib), an upside break can trigger rise towards 1.3223(Aug 29th high).On the downside, immediate support is seen at 1.3092(38.2%fib), a break below could take the pair towards 1.3052(61.8%fib).
AUD/USD: The Australian dollar was defensive on Wednesday after weak reading on the domestic economy provided another reason to sell . Australian data showed the economy grew a slim 0.2% in the June quarter, missing forecasts of a 0.3% rise, as household consumption took a rare dip.Annual growth slowed to just 1.0%, and would have been zero without a lift from strong government spending.The sub par result suggests annual growth will likely undershoot the Reserve Bank of Australia's (RBA) forecast of 1.7% for the December quarter, reinforcing the case for a cut in interest rates. The Aussie was struggling at $0.6698 , having shed 1.2% on Tuesday. Immediate resistance can be seen at 0.6739(38.2%fib), an upside break can trigger rise towards 0.6791(Sep 3rd high).On the downside, immediate support is seen at 0.6688(50%fib), a break below could take the pair towards 0.6626(61.8%fib).
USD/JPY: The dollar dipped against the yen on Wednesday as safe-haven Japanese yen rallied as traders ran for cover following the worst sell-off in almost a month on Wall Street. The catalyst was weak U.S. manufacturing data, which intensified concerns about a potential hard landing for the world's largest economy. Traders, already on edge ahead of Friday's crucial payrolls report, were further unsettled. The yen was about 0.04% stronger at 145.41 per dollar as of 03:35 GMT, following a 1% rally overnight against a broadly stronger dollar.Strong resistance can be seen at 147.31(38.2 %fib), an upside break can trigger rise towards 148.00(Psychological level). On the downside, immediate support is seen at 144.61(23.6 %fib), a break below could take the pair towards 143.81(Lower BB).
Equities Recap
Japan's Nikkei share average slipped to a three-week low on Wednesday, with chip-related stocks leading the declines, as the market tracked Wall Street's biggest drop since early August.
As of 03:48 GMT, the Nikkei was down at 3.3% . Earlier in the session, the benchmark index fell as much as 4% to hit its lowest level since Aug. 15.
Commodities Recap
Gold prices remained steady on Wednesday as investors prepared for the upcoming U.S. payrolls report that could significantly impact the pace and extent of the Federal Reserve's interest rate cuts this year.
Spot gold held its ground at $2,493.34 per ounce by 0200 GMT after hitting its lowest level in more than a week on Tuesday. U.S. gold futures were nearly unchanged at $2,524.80.
Oil prices dropped on Wednesday, extending Tuesday's more than 4% decline. The fall was driven by expectations that the political dispute blocking Libyan exports might be resolved, coupled with worries about weaker global demand growth.
Brent crude futures for November fell 28 cents, or 0.4%, to $73.47 at 0052 GMT after dropping 4.9% in the previous session. U.S. West Texas Intermediate crude futures for October were down 31 cents, or 0.4%, to $70.03 after dropping 4.4% on Tuesday.
