- Japan September Flash Manufacturing PMI Falls to 50.9 Vs Final 51.7 in August.
- Japan September Flash PMI Shows Export Orders Tumble Most In Nearly 3 Years.
- PBOC Sets Yuan Mid-Point at 6.3791 / Dlr Vs Last Close 6.3839.
- China Central Bank to Inject 80bln Yuan via 14-Day Reverse Repos Today.
- New Zealand August Month Trade Deficit NZD1031mln (Reuters Poll NZD850mln).
- New Zealand August Annual Trade Deficit NZD3331mln (Reuters Poll NZD3070mln).
- NZ August Month Imports bln (Reuters Poll NZD4.4bln).
- NZ August Month Exports bln (Reuters Poll bln).
- (0245 ET/0645 GMT) France Business Climate, consensus 102, previous 103.
- (0400 ET/0800 GMT) Germany IFO Current Conditions, consensus 114.7, previous 114.8.
- (0400 ET/0800 GMT) Italy Industrial Sales, previous 1.2%.
- (0400 ET/0800 GMT) Italy Industrial Orders previous -2.5%.
- (0400 ET/0800 GMT) Norway C/bank Rate Decision.
- (0400 ET/0800 GMT) Germany IFO Business Climate, consensus 108, previous 108.3.
- (0400 ET/0800 GMT) Germany IFO Expectations, consensus 101.5, previous 102.2.
- (0430 ET/0830 GMT) UK BBA mortgage approvals, previous 46.033K.
- (0500 ET/0900 GMT) Italy Retail Sales, previous -0.3%.
- (0600 ET/1000 GMT) Italy Flash Trade Balance Non-EU, previous 2.27 bn.
Key Events Ahead
- No major events scheduled for today.
FX Recap
EURUSD: Pair trades in a flat-lining near 1.1184, bouncing-off lows reached at 1.1165 in early moves. After a series of lackluster PMI reports from the Euro zone and a non-event Draghi's testimony on Wednesday, today's EUR calendar offers a set of German macro data for release with the IFO reading expected to be the main highlight. While we also have ECB's targeted LTRO announcement due later in the session. It made intraday high at 1.1198 and low at 1.1164. Initial support is seen around at 1.1015 and resistance at 1.1560 levels.
USDJPY: A data-quiet Asia, with liquidity flowing back in the markets as the Japanese markets re-opened after a long break. A renewed risk-aversion wave hit markets after the Nikkei dropped sharply, diminishing the bids for riskier currencies such as the US dollar. Traders shrugged of Japan's Nikkei Manufacturing Purchasing Managers' Index (PMI), which fell from 51.7 in August to a preliminary 50.9 this month. Analysts expected the index to read 51.2 in September, however, the index held above the 50 mark, which indicates that the industry remains in expansion. Pair made intraday high at 120.39 and low at 119.85 levels. Initial resistance is seen at 123.20 and support is seen at 118.42 levels.
GBPUSD: Sterling recovered its previous losses against the dollar and trading at 1.5262 levels. It made intraday high at 1.5263 and low at 1.5238 levels. Today is data light calendar for UK. Heading into the US session, traders will be looking to US durable goods orders data and last week's unemployment claims figures for further USD moves. . Initial support is seen at 1.5185 and resistance is seen around 1.5725 levels.
NZDUSD: The New Zealand currency was lifted on Thursday after New Zealand milk cooperative Fonterra revised its payout forecast for the current season. Nevertheless, prices remain far below the record levels seen almost two years ago. Moreover New Zealand's merchandise trade deficit expanded to an 11-month high in August after imports rose sharply, led by a rise in transport equipment, including aircraft. The trade gap grew from $649 million in July to $1.04 billion last month, according to a report from Statistics New Zealand, coming in larger than the market forecast of $850 million shortfall. It made intraday high at 0.6308 and low at 0.6262 levels. Initial support is seen at 0.6195 and resistance at 0.6511 levels.
AUDUSD: The Australian dollar was trading at its weakest level in more than two weeks against the US dollar, with broad losses hitting 'commodity' currencies on Wednesday, following a weaker-than-expected Chinese manufacturing index reading. The weak PMI reading hit commodity prices, including oil futures, with WTI futures sliding 3.6% to $44.69 per barrel, and Brent crude trading 2.63% lower at $47.79 a barrel. Markets now focus on US macroeconomic data for the further movement. It made intraday high at 0.7023 and low at 0.6991 levels. Initial support is seen at 0.6908 and resistance at 0.7245 levels.
Equity Recap
Japanese shares fell sharply as the markets opened on Thursday for the first time since Friday, however, traders probably hoped they could have stayed on holiday, as Japan's markets caught up with a global sell off which began Monday.
Japan's benchmark Nikkei 225 index plunged 1.69% to 17,765.61 points within the first hour of trade, while Tokyo's broader Topix gauge sank 1.34% to 1,442.39 points.
Hong Kong's benchmark Hang Seng index advanced 0.19% to 21,342.76 points at the opening bell, and mainland China's benchmark Shanghai Composite grew 0.78% to 3,140.22 points at the same time.
Korea's benchmark Kospi index rose 0.40% to 1,952.34 points this morning in Seoul.
The benchmark Australian S&P/ASX 200 index jumped 0.93% to 5,044.50 points in Sydney, with the heavily-weighted 'big four' banks supporting the index, as well as resource stocks.
New Zealand's benchmark S&P/NZX 50 index rose 0.63% to 5,690.03 points this afternoon in Wellington.
Australia's S&P/ASX 200 index closes up 1.27 pct at 5,061.40 points.
Tokyo's Nikkei average closes down 2.76 pct at 17,571.8.
Treasury Recap
BOJ offers to lend Y400 bln of JGBs on spot basis through 9/25 as a secondary source of JGBs.
Thailand 30 bln baht, 2.81-year central bank bond average accepted yield 1.6983 pct.
New Zealand government bonds eased, sending yields as much as 6 basis points higher on the short end of the curve.
In contrast, Australian government bond futures had a firmer tone, with the three-year bond contract up 2 ticks at 98.150. The 10-year contract added 1.5 tick to 97.3150.
Commodity Recap
Bullion prices rebounded on Thursday after back-to-back losses as the greenback lost some steam following a recent rally while latest Chinese data gave one more reason for investors to park their money in the safety of the yellow metal. Futures for gold rose 0.58% to $1,136.50 per troy ounce after sliding nearly 1.5% from the two-week high of $1,140 hit late last week.
Oil prices rose on Thursday, recovering from negative close recorded in the prior session as traders were digesting a mixed inventory report amid slowing demand. Futures for WTI added 0.83% to trade at $44.85 per barrel, while Brent futures were traded 0.63% higher at $48.05 per barrel.
