Market Roundup
• Australia Building Approvals (YoY) (Oct) -1.80%, 12.40%forecast,14.90% previous
• Australia Building Approvals (MoM) (Oct) -6.4%, -4.3% forecast,11.1% previous
• Australia Current Account (Q3) -16.6B, -13.2B forecast, -16.2B previous
• Australia Net Exports Contribution (Q3) -0.1%, 0.1% previous
• Australia Private House Approvals (Oct) -2.1% , 3.2% previous
Looking Ahead Economic Data (GMT)
• 07:00 UK Nationwide HPI (MoM) (Nov) 0.0% forecast, 0.3% previous
• 07:00 UK Nationwide HPI (YoY) (Nov) 1.4% forecast, 2.4% previous
• 07:45 French Government Budget Balance (Oct) -155.4B previous
• 08:00 French Car Registration (YoY) (Nov) 2.9% previous
• 10:00 EU Core CPI (YoY) (Nov 2.4% forecast,2.4% previous
• 10:00 EU Core CPI (MoM) (Nov) 0.3% previous
• 10:00 EU (YoY) (Nov) 2.1% forecast,2.1% previous
• 10:00 EU CPI (MoM) (Nov) 0.2% previous
• 10:00 EU CPI, n.s.a (Nov) 129.70 previous
• 10:00 EU HICP ex Energy & Food (YoY) (Nov) 2.4% previous
• 10:00 EU HICP ex Energy and Food (MoM) (Nov) 0.2% previous
• 10:00 EU Unemployment Rate (Oct) 6.3% forecast,6.3% previous
Looking Ahead Events And Other Releases (GMT)
•No events Ahead
Currency Forecast
EUR/USD : The euro edged lower on Tuesday investors awaited U.S. economic data to gauge the Federal Reserve's policy path.Powell, in remarks prepared for an address at Stanford University late on Monday, did not comment on the economy or monetary policy. Investors are now awaiting key U.S. data this week, including Wednesday's November ADP employment report and Friday's delayed September PCE Index. Meanwhile, White House economic adviser Kevin Hassett said he is willing to serve as Fed chair, as Treasury Secretary Scott Bessent flagged a possible pre-Christmas nomination. Hassett, like President Donald Trump, wants lower rates. Immediate resistance can be seen at 1.1652(Dec 1st high), an upside break can trigger rise towards 1.1668(Higher BB).On the downside, immediate support is seen at 1.1572(SMA20), a break below could take the pair towards 1.1524(50%fib).
GBP/USD: Sterling traded flat against the dollar on Tuesday as initial boost from the UK budget has begun to fade, with market focus now shifting firmly toward dovish expectations for the Bank of England. Investors remain cautious that slowing growth and easing inflation pressures could push policymakers toward a more accommodative stance in the months ahead.Sterling sentiment was also dented by fresh political noise after the head of the UK budget watchdog, the Office for Budget Responsibility, resigned following controversy over the early release of Chancellor Rachel Reeves’ budget details. The episode has added to near-term uncertainty around fiscal credibility. On the data front, the British Retail Consortium reported that UK shop inflation cooled in November, offering some near-term relief for consumers.Immediate resistance can be seen at 1.3253(38.2%fib), an upside break can trigger rise towards 1.3273(SMA 20).On the downside, immediate support is seen at 1.3122(SMA 20), a break below could take the pair towards 1.3051(23.6%fib).
AUD/USD: The Australian dollar edged higher on Tuesday after Australian data pointed to solid economic growth in the third quarter.Australia's government spending jumped in the third quarter to add to a long-awaited rebound in business investment, setting the stage for a solid economic performance.Data from the Australian Bureau of Statistics showed government spending added 0.4 percentage points to gross domestic product (GDP) in the September quarter, after barely contributing in the previous quarter.The central bank policy board meets next week and is considered certain to hold rates at 3.60%, and perhaps turn more hawkish on the outlook for further easing.RBA Governor Michele Bullock appears before lawmakers on Wednesday and is certain to be questioned on inflation, though she is usually careful not to pre-empt the board on policy. Immediate resistance can be seen at 0.6560(50%fib), an upside break can trigger rise towards 0.6583 (Higher BB).On the downside, immediate support is seen at 0.6504(38.2%fib), a break below could take the pair towards 0.6468(Nov 26th low)
USD/JPY: The U.S. dollar stabilized early on Tuesday trade after suffering a sharp sell-off as traders locked in profits on the yen after its sharp rally, which was sparked by comments from Bank of Japan Governor Kazuo Ueda.In a Monday speech in Nagoya, Ueda said officials would assess the “pros and cons” of raising rates in December, offering the strongest hint so far of imminent policy tightening.He added that guidance on the future rate path would come once rates hit 0.75%, with wage data and other indicators shaping December’s decision.Traders have priced in an increasing probability of a December hike from the Bank of Japan, with last month’s slide in the yen to 10-month lows strengthening the case for tightening . Immediate resistance can be seen at 156.17(Dec 1st high) an upside break can trigger rise towards 157.40 (23.6%fib) .On the downside, immediate support is seen at 155.14 (38.2%fib) a break below could take the pair towards 154.71 (Dec 1st low)
Equities Recap
Asian share dipped on Tuesday as investors took a breather following five straight sessions of gains and ahead of key economic data that could support bets on Federal Reserve interest rate cuts.
China’s A50 dipped 0.40%,Japan’s Nikkei 225 was down 0.02%,Hang Seng was down 0.06%
Commodities Recap
Gold edged lower on Tuesday, retreating from a six-week high as rising Treasury yields and investor profit-taking weighed, with attention turning to upcoming U.S. economic data.
Spot gold fell 0.4% to $4,216.13 per ounce by 0436 GMT, after hitting its highest level since October 21 on Monday.
U.S. gold futures for December delivery were down 0.7% at $4,246.60 per ounce.
Crude prices held near flat in early trading on Tuesday, with markets focused on geopolitical risks linked to Ukraine-Russia tensions, strained U.S.-Venezuela relations, and uneven forecasts for U.S. inventories.
Brent crude futures LCOc1 rose 7 cents, or 0.1%, to $63.24 a barrel at 0427 GMT. U.S. West Texas Intermediate crude CLc1 gained 10 cents, or 0.2%, to $59.42 a barrel.
