Market Roundup
- Singapore Nov industrial production -3.6 pct m/m seasonally adjusted (Reuters poll +0.8 pct)
- Singapore Nov industrial production -5.5 pct y/y (Reuters poll -2.7 pct)
- Dutch Dec manufacturing confidence +3.0 pts after +4.0 pts in nov - Cbs
- Dutch Final q3 GDP +1.9 pct y-on-y nsa vs preliminary +1.9 pct - Cbs
- Dutch final q3 GDP +0.1 pct q/q sa vs preliminary +0.1 pct - Cbs
- Boj Gov Kuroda: Fine-tuning of QQE announced Friday will allow BoJ to sustain QQE, adjust policy if needed
- Boj Gov Kuroda: BoJ's new ETF-buying programme would target not only firms actually increasing capex, wages but also those raising productivity, efficiency
- Boj Gov Kuroda: QQE has clearly led Japan businesses, households away from deflationary mindset
- BoJ Policy Board Nov meeting minutes - Important to monitor EM, global Developments, Asia in deceleration mode, weighs on growth, corporate profits strong nevertheless, wages-CAPEX must go up, must reflect underlying uptrend in inflation, trend steadily higher.
- Japan PM Abe - Japan step away from deflation end, wants firms to up wages next year, wage-CAPEX boost needed to sustain current economic cycle - RTRS.
- Japan Cabinet approves record trln FY '16/17 budget, tax revenues at 25-year high, less JGBs to be sold for third year, total Y147 trln - Reuters.
- (0430 ET/ 0930 GMT) GB Nov BBA mortgage approvals; last 45.44k.
- (0830 ET/ 1330 GMT) US w/e initial jobless claims, 270k eyed; last 271k.
- Nothing scheduled, US SIFMA recommends early, 14:00 ET Treasury market close.
USD: The dollar index a touch softer at 98.256, still well off last Thursday's peak of 99.294. It was back at levels seen before the Federal Reserve hike.
AUD/USD: The antipodenas are on track to post solid gains for the week due to a hunt for yield. Much of the strength came from heavy buying interest from real money accounts. AUD/USD firm as market winds down pre Christmas and holiday period, opens Thursday at 0.7234, trades 0.7226-60 in Asia; last 0.7246. AUD/USD shorts under pressure as RM buying this week, carry trade demand is still in play for some time. The pair finds layers of resistance with 0.7250 as initial resistance, stronger barrier seen near 0.7280 levels, breaks above could target 0.7335 levels. Initial support lies at 0.7220, which is resistance turned support level, and further below 0.7214 (5 DMA) and 0.7204 (10 DMA) are good support for the pair.
NZD/USD: The Kiwi ended a 3-day run of higher highs against the Greenback after it closed in the red in yesterday's trade. The pair is drifting sideways since, remains subdued Asia confined +/-10 pips either side of 0.6800. NZX50 continued to build on gains extending all time high to 6232.5 c+0.5%. Better commodity sector likely to keep the pair supported today, a positive trade balance yesterday also keeps bids intact. At the time of writing, the pair is trading at 0.6801, with initial resistance at 0.6828 (Dec 23 high) and support at 0.6780 (5-DMA).
USD/JPY: Yen slightly bid on the BoJ minutes, USD/JPY has breached strong trendline support at 120.70. Price action is below the 100/200 cross over and cluster of MA's on the daily chart, and has on the day fallen below the daily Cloud base at 120.91. Multiple daily lows are seen in the vicinity of 120.35, this is a strong support zone, break to the downside could target 119 level near‐ term. USD/JPY is currently trading at 120.63, off from day's high at 120.98. Immediate support is seen at 120.33 (Dec 14 low), while resistance is located at 121.12 (Dec 23 high).
EUR/USD: Euro in very tight range just above $1.0900. EUR/USD drifted up slowly from a low of 1.0903 and is currently at 1.0937. Against the Yen the euro fetched 131.88 yen and remains hemmed in a 131.83-131.98 range. Trading largely subdued on Thursday in a languid session with much of the Western world already shuttered for the Christmas and year-end holidays. Price has re-entered daily cloud, immediate resistance is seen at 1.0956 (Dec 23 high) and support is seen by 5 DMA at 1.0917.
USD/CAD: Canadian dollar has depreciated significantly in recent weeks largely on the back of decline in oil prices and, to a lesser extent, an increased probability of a rate cut by the BoC. USD/CAD halted in run higher at 1.40 levels and declines in the past 4 sessions saw the piar cool off to 1.3835 on Wednesday. The Canadian dollar held onto most of its overnight gains, spurred by a rebound in oil prices. The loonie traded at C$1.3843 per U.S. dollar, off a near 12-year trough of C$1.4003 set last week. Immediate reisstance is located at 1.3905 (5 DMA), while support lies at 1.3841 (session low 24 Dec).
Equities Recap
Asian shares climbed to 2-1/2-week highs on Thursday. MSCI's broadest index of Asia-Pacific shares outside Japanwas up 0.7 percent after U.S. stocks posted their third straight session of gains.
Tokyo's Nikkei average opens gap up but moves steadily lower thereafter, unofficially closes down 0.51 pct at 18,789.69, Taiwan stocks close up 0.1 pct at 8,324.36 points, Seoul shares unofficially close down 0.21 pct.
Australia's S&P/ASX 200 index unofficially closes up 1.16 pct at 5,201.20 points in holiday shortened trade.
Commodities Recap
Gold rose in thin pre-holiday trade on Thursday, after two days of losses. Spot gold rose 0.3 percent to $1,073.50 an ounce by 0358 GMT, after losing 0.7 percent in the last two sessions.
U.S. crude prices rose for a fourth straight session on Thursday, after hitting their lowest since early 2009 on Monday. Front-month WTI crude futures were trading at $37.74 per barrel at 0315 GMT, up 0.6 percent on the day and set for the biggest weekly gain since early October.
With internationally traded Brent futures trading at $37.60 a barrel, U.S. crude defended a premium it regained this week for the first time in around a year.
Treasuries Recap
Australian government bond futures were very quiet, with the three-year bond contract steady at 97.940. The 10-year contract was down 1 tick at 97.1450, while the 20-year contract was off half a tick at 96.6550.
New Zealand government bonds eased slightly, with yields up 1.5 basis points in the middle of the curve. Two-year bond yields at 2.7 percent.
