Market Roundup
• Australia Construction Work Done (QoQ) (Q3) 1.6%, 0.4% forecast, 1.1% previous
• Australia Weighted mean CPI (YoY) (Oct) 2.10% ,2.50% forecast, 2.10% previous
• New Zealand RBNZ Interest Rate Decision 4.25% ,4.25% forecast, 4.75% previous
•China Chinese Industrial Profit YTD (Oct) -4.3% ,-3.5% previous
Looking Ahead Economic Data(GMT)
•08:00 Spanish Retail Sales (YoY) (Oct) - 4.1% previous
•09:00 Swiss ZEW Expectations (Nov) - -7.7 previous
•09:30 GfK German Consumer Climate (Dec) - -18.8 forecast, -18.3 previous
•10:10 Italian 6-Month BOT Auction - 3.003% previous
•11:00 France Jobseekers Total (Oct) - 2,837.9K previous
Looking Ahead Events And Other Release(GMT)
•08:00 E European Central Bank Non-monetary Policy Meeting
Currency Forecast
EUR/USD: the euro was little changed on Wednesday as investors continued to take stock of President-elect Donald Trump's tariff pledges, while keeping an eye on a key inflation figure out of the U.S. later in the day Trump's vows on Monday of big tariffs on Canada, Mexico and China, the United States' three largest trading partners, have left investors jittery, even if some of the reaction was tempered later in the U.S. day. The main scheduled news release left this week is the October Personal Consumption Expenditures (PCE) price index due later on Wednesday. Fed minutes of the central bank's November meeting released on Tuesday showed many policymakers in agreement that it was appropriate to reduce policy restraint gradually. The euro was little changed at $1.0493. Immediate resistance can be seen at 1.0463(38.2%fib), an upside break can trigger rise towards 1.0520(50%fib).On the downside, immediate support is seen at 1.0400`(23.6%fib), a break below could take the pair towards 1.0326(Daily low)
GBP/USD: The pound was little changed on Wednesday amid lingering concerns over U.S. President-elect Donald Trump's tariff plans. U.S., President-elect Donald Trump said he would impose a 25% tariff on all products coming into the U.S. from Mexico and Canada. Investors digested a handful of economic data on Tuesday indicating the economy remained on solid footing.Traders will now closely monitor core PCE figures, initial jobless claims and GDP (first revision), set for release later in the day.Markets currently see a 63% chance of a 25-basis-point rate cut by the Fed in December, as per the CME group's FedWatch tool. Immediate resistance can be seen at 1.2612(38.2%fib), an upside break can trigger rise towards 1.2721(50%fib).On the downside, immediate support is seen at 1.2488 (23.6%fib), a break below could take the pair towards 1.2400(Psychological level)
AUD/USD: The Australian dollar was little changed on Wednesday after data showed Australia's inflation remained flat at 2.1% .Australia's consumer price inflation rate remained at a three-year low in October, as government rebates helped lower electricity and rent prices. However, core inflation increased, indicating ongoing cost pressures in other areas.Data from the Australian Bureau of Statistics, released on Wednesday, showed the monthly consumer price index rose by 2.1% year-on-year in October, matching September's rate and coming in below market expectations of 2.3%. At GMT 06:12, The Aussie was trading up 0.02% at 0.6475. Immediate resistance can be seen at 0.6555(38.2%fib), an upside break can trigger rise towards 0.6564(SMA 21).On the downside, immediate support is seen at 0.6459(Daily low), a break below could take the pair towards 0.6389(April 16th low).
USD/JPY: The dollar eased against the yen on Wednesday as Japanese yen strengthen on bets Bank of Japan may raise interest rates in December. A key indicator of Japan's service-sector inflation remained close to 3% in October, according to data released on Tuesday. This trend provides further evidence that conditions are aligning for a potential near-term interest rate hike by the Bank of Japan.Japan's services producer price index, which tracks the prices companies charge each other for services, increased by 2.9% in October compared to the previous year, according to data from the Bank of Japan.The data will be among factors the BOJ will scrutinise at its next policy meeting in December, when some analysts expect it to hike interest rates from the current 0.25%. Immediate resistance can be seen at 153.11 (38.2%fib) an upside break can trigger rise towards 154.15 ( (SMA9). On the downside, immediate support is seen at 152.00 (Psychological level) a break below could take the pair towards 151.82(50%fib).
Equities Recap
Asian stocks declined on Wednesday, and currencies saw heightened volatility as investors expressed concerns over the potential for other countries to face tariffs under incoming U.S. President Donald Trump. This followed his pledge the day before to impose new levies on Canada, Mexico, and China.
Japan's Nikkei declined more than 1%. Taiwanese stocks TWII lost 1.5%, while South Korea's KOSPI dropped 0.8%.
Commodities Recap
Gold prices inched up on Wednesday as the U.S. dollar eased, while investors' focus shifted to key inflation data from the world's biggest economy for cues on the likely scale of a Federal Reserve rate cut next month.
Spot gold rose 0.3% to $2,639.30 per ounce, as of 0523 GMT. Bullion hit an over one-week low on Tuesday.U.S. gold futures rose 0.7% to $2,639.40.
Oil prices steadied on Wednesday, with markets assessing the potential impact of a ceasefire deal between Israel and Hezbollah, and ahead of Sunday's OPEC+ meeting of producers.
Brent crude futures rose 5 cents to $72.86 a barrel by 0415 GMT, while U.S. West Texas Intermediate crude futures were up 3 cents at $68.80 a barrel.
