Market Roundup
• US JOLTS Job Openings Jun 6.163m, 5.775m forecast, 5.702m previous.
• US NFIB Business Optimism I Jul 105.2, 103.60 previous.
• US Redbook MM w/e -0.3%, -1.2% previous.
• US Redbook YY w/e 2.7%, 2.8% previous.
• Financing poses frustration for US start-ups -NY Fed survey.
• 'Clean' debt ceiling bill unlikely to pass US House –lawmaker.
• US envoys told to be coy on re-engaging in Paris climate deal –cable.
• China vows to enforce UN curbs on N.Korea as Trump praises cohesion.
• S.Africa's rand slides near one-month low as Zuma survives no-confidence vote.
• Brazilian consumer prices likely up in July on tax hike, power costs.
• Mexico central bank seen holding interest rates steady.
• OPEC expects laggards to comply more fully with oil cut pact.
Looking Ahead - Economic Data (GMT)
• 00:30 Australia Consumer Sentiment MM Aug 0.4% previous
• 01:30 Australia Housing Finance MM Jun 1.5% forecast, 1% previous
• 01:30 Australia Invest Housing Finance -1.4% previous
• 01:30 China PPI YY Jul 5.5% forecast, 5.5% previous
• 01:30 China CPI YY Jul 1.5% forecast, 1.5% previous
• 01:30 China CPI MM Jul 0.2% forecast, -0.2% previous
Looking Ahead - Events, Other Releases (GMT)
• No major events
Currency Summaries
EUR/USD is likely to find support at 1.1689 levels and currently trading at 1.1746 levels. The pair has made session high at 1.1815 and hit lows at 1.1713 levels. The euro slipped against the U.S. dollar on Tuesday as dollar shook off early weakness to rise to more than a one-week high on Tuesday, after data showed U.S. job openings surging to a record high in June. The dollar index, which tracks the greenback against six major rival currencies, was up 0.34 percent to 93.745.The Labor Department said on Tuesday that job openings, a measure of labor demand, increased 461,000 to a seasonally adjusted 6.2 million, the highest level since the series started in December 2000. Tuesday's strong job openings data helped the dollar shake off some the weakness it experienced on Monday following dovish comments from St. Louis Fed President James Bullard and Minneapolis Fed President Neel Kashkari. Bullard said the U.S. central bank could leave interest rates where they are for now because inflation is not likely to rise much even if the U.S. job market continues to improve, while Kashkari talked about inflation being below target. The euro was down 0.43 percent to $1.1748 on Tuesday, close to last week's 2-1/2-year highs.
GBP/USD is supported in the range of 1.2947 levels and currently trading at 1.2991 levels. It reached session high at 1.3014 and dropped to session low at 1.2949 levels. Sterling declined against dollar on Tuesday as sterling came under selling pressure as investors grew more bearish about Britain's economic outlook after consumer spending fell for a third month in a row in July. British retail sales grew more slowly in July, data published on Tuesday showed, as shoppers cut back on non-essential spending and budgeted for the higher price of food following the Brexit vote.UK retail sales increased by an annual 0.9 percent on a like-for-like basis, which strips out changes in store size, the British Retail Consortium said. That was down from growth of 1.2 percent in June, the highest non-Easter reading of the year thanks to good weather. Total sales in July slowed to show a 1.4 percent rise, in line with the 12-month average. The British pound, which has fallen more than 2 percent over the last three sessions, dropped below $1.30 for the first time since July 21.
USD/CAD is supported at 1.2610 levels and is trading at 1.2662 levels. It has made session high at 1.2703 and lows at 1.2653 levels. The Canadian dollar declined against its U.S. counterpart on Tuesday as oil prices fell and data showed slower Chinese and German trade growth. U.S. crude prices were down 0.63 percent at $49.08 a barrel as high oil production in many parts of the world offset news of lower crude supplies from Saudi Arabia. Chinese and German trade data disappointed, suggesting global demand may be starting to flag just as central banks contemplate scaling back stimulus. The Canadian dollar was trading last at C$1.2663 to the greenback, or 78.87 U.S. cents. The currency traded in a range of C$1.2652 to C$1.2689. On Monday, when Canada's stock and bond markets were closed for a public holiday, the loonie touched its weakest since July 14 at C$1.2715. Domestic housing data is awaited this week. Reports on housing starts for July and building permits for June are due on Wednesday while the June new housing price index is set for Thursday.
NZD/USD is supported around 0.7300 levels and currently trading at 0.7325levels. It hit session high at 0.7355 and made session lows at 0.7317 levels. The New Zealand dollar hovered near three-week lows against dollar on Tuesday as investors unwound long positions fearing the country's central bank could turn more dovish at its policy review this week. The Reserve Bank of New Zealand (RBNZ) is all but certain to leave cash rates at a record low 1.75 percent on Thursday and analysts suspect policymakers will reinforce the need for low rates, given sagging inflation. The New Zealand dollar was down at $0.7325, having lost 0.75 percent overnight in its largest daily drop in almost two months. The kiwi had risen more than 10 percent in the past three months, a big factor compressing inflation. Trading was thin overall as the market gets into the thick of the summer months, with activity in Japan, whose central bank is the largest non-U.S. holder of Treasuries, shut down next week for holidays.
Equities Recap
European equities turned positive after a damp start on Tuesday as strong gains in utilities, auto and energy stocks outweighed losses from Pandora after disappointing results. Investors pointed to strong earnings growth as the second-quarter results season powered on.
UK's benchmark FTSE 100 closed up by 0.1 percent, the pan-European FTSEurofirst 300 ended the day up by 0.19 percent, Germany's Dax ended up by 0.3 percent, France’s CAC finished the day up by 0.2 percent.
U.S. stocks fell on Tuesday in a late afternoon selling spree following U.S. President Donald Trump's warning he will counter North Korea with "fire and fury" if the country endangers the United States.
Dow Jones closed down by 0.14 percent, S&P 500 ended down by 0.24 percent, Nasdaq finished the day down by 021 percent.
Treasuries Recap
U.S. Treasury yields rose on Tuesday, bolstered by strong demand for three-year notes in an overall quiet market as investors awaited the sale of more debt securities this week and the expected reduction of the Federal Reserve's balance sheet next month.
In late trading, U.S. 10-year yields rose to 2.274 percent, from 2.257 percent late on Monday.
U.S. 30-year bonds yielded 2.858 percent, up from 2.837 percent the previous day. Yields earlier hit a one-week high.
After the auction, U.S. three-year yields were at 1.510 percent, up from Monday's 1.505 percent.
Commodities Recap
Gold fell to a two-week low on Tuesday after U.S. jobs data came in better than expected and the dollar turned positive, while investors awaited U.S. inflation figures later this week for further clues about the pace of interest rate rises.
Spot gold was down 0.1 percent at $1,255.81 an ounce by 2:09 p.m. EDT (1809 GMT), after falling to $1,251.01, the lowest since July 26 and just above the 50-day moving average. U.S. gold futures settled down 0.2 percent at $1,262.60.
Oil prices slipped on Tuesday, pulling back from recent gains as exports from key OPEC producers rose and despite news of lower crude shipments from Saudi Arabia.
Benchmark Brent crude settled down 23 cents a barrel at $52.14 a barrel. U.S. light crude ended down 22 cents at $49.17 a barrel.
