Market Roundup
- BOJ keeps policy rate unchanged at -0.10 pct.
- Kiwi’s GDP q/q stands at 0.7 vs 0.1 previous release (expected 0.5).
- Kiwi’s trade balance stands at -753M vs -1039M previous release (expected -700M).
- Australia’s employment change stands at 39.9K vs -24.8K previous release (expected 14.5K).
- Australia’s unemployment rate stands at 5.2 pct vs 5.3 pct previous release.
- BOJ - Decided to introduce ETF lending facility; aims to improve liquidity In the ETF market.
- China set the yuan reference rate at 7.0025 against the U.S. dollar versus 6.9969 yesterday.
Economic Data Ahead
- (0200 ET/0700 GMT) Swiss trade balance.
- (0245 ET/0745 GMT) France business survey.
- (0300 ET/0800 GMT) Taiwan interest rate decision.
- (0430 ET/0930 GMT) U.K. retail sales, core retail sales.
Key Events Ahead
- (0700 ET/1200 GMT) U.K. official bank rate, monetary policy summary.
FX Recap
USD: The U.S. dollar index that tracks the greenback against a basket of other currencies inched down 0.05% to 97.35.
EUR/USD: The euro rises against U.S. dollar and currently trading around $1.1127 mark. It made intraday high at $1.1132 and low at $1.1111 mark. A sustained close above $1.1149 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 $1.1113 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 as BOJ keeps policy rate unchanged at -0.1 pct. The pair is currently trading around 109.58 mark. It made intraday high at 109.68 and low at 109.52 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 continues to trade down against U.S. dollar and stabilizes below $1.31 mark. A sustained close below $1.3078 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 $1.3134, $1.3335, $1.3422 and $1.3515 levels respectively.
AUD/USD: The Aussie appreciates against U.S. dollar on strong employment data. The pair made intraday high at $0.6881 and low at $0.6848 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 remains highly volatile against U.S. dollar after GDP as well as trade balance data. The pair is currently trading around $0.6592 mark. Pair made intraday high at $0.6596 and low at $0.6575. 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 0.30 pct lower at 23,863.20 points.
Australia’s S&P/ASX 200 was trading 0.28 pct lower at 6,831.20 points.
Hang seng was trading 0.60 pct lower at 27,716.50 points.
South Korea’s Kospi was trading 0.20 pct lower at 2,190.20 points.
Taiwan’s TWII was trading 0.77 pct lower at 12.028.61 points.
India’s NSE was trading 0.12 pct lower at 12,207.50 points and BSE sensex points 0.13 pct lower at 41,503.66 points.
Commodities Recap
Gold trades flat in Asian hours at $1,476 mark. It consolidates around $1,475 mark. It 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 price depreciates on Thursday. U.S. WTI slipped 0.1% to $60.80 by 1:30 AM ET (05:30 GMT), while international Brent crude also lost 0.1% to $66.15.
Treasuries Recap
The Australian bonds plunged during Asian session Thursday tracking a similar movement in the United States Treasuries as trade deal optimism flooded investor sentiments amid rather buoyant economic data that indicated some stabilization in the ongoing economic slowdown. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, jumped 7 basis points to 1.272 percent, the yield on the long-term 30-year bond also surged 7 basis points to 1.879 percent and the yield on short-term 2-year gained nearly 6 basis points to 0.841 percent.
The Japanese government bonds closed mixed Thursday after the Bank of Japan’s (BoJ) monetary policy meeting, concluded early today, delivered no change, fails to create any major impact on domestic bond market. At close, the yield on the benchmark 10-year JGB note, which moves inversely to its price, slipped nearly 1 basis point to -0.007 percent, the yield on the long-term 30-year remained flat at 0.415 percent and the yield on short-term 2-year lost 11 basis points to -0.110 percent.
