Market Roundup
- Japan’s trade balance stands at -82.1B vs 15.7B previous release (expected -369.0B).
- New Zealand’s current account stands at -6.35B vs -1.04B (expected -6.32B).
- Fitch affirmed U.K.’s “AA” rating.
- S&P changes U.K.’s outlook to stable from negative.
- PBOC cut interest rate for 14 - day reverse repo to 2.65% from previous 2.7%.
- PBOC fixes Yuan Mid Point at 6.9969 against the U.S. dollar (est 6.9975).
Economic Data Ahead
- (0200 ET/0700 GMT) Germany PPI, WPI data.
- (0205 ET/0705 GMT) Thailand interest rate decision.
- (0400 ET/0900 GMT) German business expectations, current assessment, IFO business climate.
- (0430 ET/0930 GMT) UK CPI, core CPI, HPI, PPI input, PPI output, RPI.
- (0500 ET/1000 GMT) Euro zone final CPI, core CPI, HICP ex energy and food.
- (0600 ET/1100 GMT) UK CBI distributive trades survey.
- (0630 ET/1130 GMT) India money supply.
- (0700 ET/1200 GMT) U.S. MBA 30 – year mortgage rate, MBA purchase index, mortgage market index, mortgage refinance index.
Key Events Ahead
- (0330 ET/0830 GMT) ECB President Lagarde’s speech.
- (0515 ET/1015 GMT) FOMC member Brainard’s speech.
- (0615 ET/1115 GMT) ECB member Coeure’s speech.
FX Recap
USD: The U.S. dollar index that tracks the greenback against a basket of other currencies inched up 0.11% to 97.33.
EUR/USD: The euro trades marginally lower against U.S. dollar and currently trading around $1.1131 mark. It made intraday high at $1.1154 and low at $1.1130 mark. A sustained close above $1.1169 will drag the parity higher towards key resistances around $1.1220, $1.1390, $1.1472, $1.1550, $1.1620 and $1.1820 marks respectively. On the other hand, a consistent close below $1.1118 will drag the parity down towards key supports around $1.1079, $1.1026 and $1.0852 levels respectively.
USD/JPY: The Japanese yen remains almost unchanged after trade balance data. The pair is currently trading around 109.46 mark. It made intraday high at 109.56 and low at 109.41 levels. A sustained close above 109.54 is required to take the parity higher towards key resistances around 112.60 and 113.98 marks respectively. Alternatively, a daily close below 109.30 will drag the parity down towards key support around 108.40, 106.90 and 104.20 marks respectively.
GBP/USD: The pound depreciates remarkably against U.S. dollar and stabilizes around $1.31 mark. A sustained close below $1.3103 requires for dragging the parity down towards key support around $1.2820, $1.2644 and $1.2352 mark respectively. On the other side, key resistances are seen at $1.3335, $1.3422 and $1.3515 levels respectively.
AUD/USD: The Aussie trades almost flat against U.S. dollar and remains well supported above $0.6838 mark. The pair made intraday high at $0.6856 and low at $0.6840 levels. A consistent close below $0.6851 requires for downside rally towards $0.6704 mark. On the other side, a sustained close above $0.6909 will take the parity higher towards $0.6977 and $0.7076 levels respectively.
NZD/USD: The New Zealand dollar falls gradually against U.S. dollar and currently trading around $0.6565 mark. Pair made intraday high at $0.6573 and low at $0.6554. A sustained close above $0.6597 requires for the upside rally. Alternatively, a consistent close below $0.6544 will take the parity down towards key supports around $0.6424, $0.6323, $0.6236 and $0.6196 levels respectively.
Equities Recap
Japan’s Nikkei was trading 0.42 pct lower at 23,965.20 points.
Australia’s S&P/ASX 200 was trading 0.15 pct higher at 6,857.20 points.
Hang seng was trading 0.01 pct higher at 27,847.50 points.
South Korea’s Kospi was trading 0.02 pct lower at 2,195.62 points.
Taiwan’s TWII was trading 0.08 pct lower at 12.087.62 points.
India’s NSE was trading 0.21 pct higher at 12,191.40 points and BSE sensex points 0.24 pct higher at 41,450.25 points.
Commodities Recap
Gold remains almost unchanged in Asian hours and trades flat at $1,476 mark. Pair moves in stiff boundaries from $1,487 to $1,455 mark. A sustained close above $1,490 requires for the upside rally. On the other side, a consistent close below $1,455 will drag the parity down towards key supports around $1,440, $1,422 and $1,407 mark respectively.
Oil prices traded lower on Wednesday in Asia after the American Petroleum Institute (API) reported a large build of weekly crude inventories. U.S. Crude Oil WTI Futures lost 0.7% to reach $60.45. International Brent Oil Futures declined 0.5% to $65.77.
Treasuries Recap
The yield on Australia’s benchmark 10-year note, which moves inversely to its price, jumped 4 basis points to 1.201 percent, the yield on the long-term 30-year bond surged 4 basis points to 1.808 percent and the yield on short-term 2-year gained 3 basis points to 0.781 percent.
