Market Roundup
- BOJ Gov Kuroda – Japanese economy moving forward on global economic recovery, emerging market demand recovers, 10-year JGB yields stable around zero percent even as rates abroad surge, BOJ yield curve control policy working, will retain 2% inflation target, world standard.
- BOJ Policy Board Oct 31-Nov 1 meeting minutes – Lots of talk on minutiae, no change in policy, issues discussed included allowing more negative rates in response to negative shocks, progress on achieving 2% inflation goal, shape of the yield curve, amount dedicated to QQE, operation guidelines and communication.
- Japan PM Abe – Urges companies to up wages again, re-emphasizes importance of TPP.
- Japan November corporate service prices +0.1% m/m, +0.3% y/y to 103.3, 41st consecutive rise, Oct +0.5% y/y.
- Japan’s remittance system may be overhauled – Nikkei.
- Italy salvage plan gives banks up to one year to get debt guarantee.
- Thailand November customs-cleared exports +10.2 pct yr/yr (vs +1.55 pct in poll) - commerce ministry.
- Thailand November customs-cleared imports +3.0 pct yr/yr (vs -1.05 pct in poll) - commerce ministry.
- Thailand November customs-cleared trade balance +1.54 bln dlrs ( vs +0.50 bln dlrs in poll) - commerce ministry.
Economic Data Ahead
- No key indicators scheduled for the day.
Key Events Ahead
- No key events scheduled for the day.
FX Recap
USD: The dollar index was marginally down at 102.91 levels. Trading was subdued with many key markets shut on Monday for the Christmas holidays.
EUR/USD: The euro rebounded marginally from a nearly 14-year low of $1.0350 set previous week. Intraday bias remains slightly bullish till the time pair holds key support at 1.0382. Immediate resistance was seen at $1.0539 level. A daily close above 1.0448 is required for the further upside rally.
USD/JPY: The yen trades almost flat at 117.17 against U.S. dollar. A sustained close above 118.17 is required to take the parity higher towards 120.00 marks. Alternatively, a daily close below 116.95 will drag the parity down towards 114.81 levels. Intraday bias remains neutral for the moment. Today Japan released monetary policy meeting minutes in early hours of Asia. Most members shared recognition that momentum toward achieving price target was being maintained.
GBP/USD: The sterling remains well supported below 1.23 mark against U.S. dollar. Short term bias remains bearish till the time pair holds key resistance at 1.2350 levels. On the other side, current downside movement will take the parity towards key supports around 1.2108 levels. UK banks will be closed in observance of Boxing Day.
AUD/USD: The Australian dollar erases previous loss against U.S. dollar and hovers around 0.72 marks due to holiday mood. Pair made intraday high at 0.7197 and low at 0.7161. A consistent close below 0.7170 will drag the parity towards key supports around 0.7142 and 0.7058 marks respectively. On the top side, key resistances are seen at 0.7260, 0.7312 and 0.7369 marks.
NZD/USD: The New Zealand dollar consolidates around 0.69 mark against U.S. dollar in the festival mood. Intraday bias remains neutral for the moment. Initial support and resistance levels are seen at 0.6862 and 0.6925 levels respectively.
Equities Recap
Tokyo's Nikkei share average opens down 0.17 pct at 19,394.41.
Seoul Kospi shares open up 0.12 pct at 2038.33.
Shanghai composite index to open down 0.5 pct at 3,095.58 points and China's CSI300 index to open down 0.4 pct at 3,293.22 points.
India’s NSE Nifty was trading around 0.99 percent lower at 7,906.70 points and BSE Sensex was trading at 0.85 percent lower at 25,818.05 points.
Commodities Recap
U.S. West Texas Intermediate crude fell 26 cents, or 0.5 percent, to $52.69 a barrel after settling up 0.9 percent in the previous session.
U.S. gold futures were steady at $1,132.2 per ounce.
Treasuries Recap
BOJ offers to lend Y 4.7493 trln of JGBs on spot basis through 12/27 as a secondary source of JGBs.
South Korea Central bank sells 91-day monetary stabilisation bonds at yield of 1.35 pct.
