Market Roundup
• Australia Jul MI Leading Index (MoM) -0.0%,0.0% previous
• New Zealand Jul Credit Card Spending (YoY) -3.8%,-3.1% previous
Looking Ahead Economic Data (GMT)
• 09:00 UK 3-Year Treasury Gilt Auction 4.441% previous
Looking Ahead Events And Other Releases (GMT)
• 18:00 US FOMC Meeting Minutes
Currency Summaries
EUR/USD: The euro eased slightly against dollar on Wednesday as traders braced for potentially crucial revisions to U.S. payrolls data later in the day, ahead of a speech by Federal Reserve Chair Jerome Powell at the end of the week. Powell's keynote address on Friday at the Kansas City Fed's Jackson Hole economic symposium will be parsed carefully for any hints on the likely size of a rate cut next month, and whether borrowing costs are likely to be lowered at each subsequent Fed meeting . Any concrete hints on U.S. rate cuts will provide a fresh boost to risk assets globally amid lingering fears over the world's largest economy's performance, although such concerns seem to have eased off of late. Immediate resistance can be seen at 1.1119(23.6%fib), an upside break can trigger rise towards 1.1135(Dec 2023 high).On the downside, immediate support is seen at 1.1074(Daily low), a break below could take the pair towards 1.1054(38.2%fib).
GBP/USD: British pound eased slightly on Wednesday as investors awaited revisions to U.S. payrolls data on Wednesday and Federal Reserve Chair Jerome Powell's speech to the Jackson Hole economic conference in Wyoming later in the week.Investors are also looking ahead to business activity data due on Thursday and remarks from Bank of England Governor Andrew Bailey at the Jackson Hole central bankers' meeting on Friday. Recent official data indicated signs of improvement in the British economy, particularly in the retail sector, as the negative effects of high inflation on consumer spending begin to ease. Sterling was up 0.29% at $1.3026 after reaching $1.3054, the highest level since July 2023.Immediate resistance can be seen at 1.3047(23.6%fib), an upside break can trigger rise towards 1.3100 (Psychological level).On the downside, immediate support is seen at 1.2973(38.2%fib), a break below could take the pair towards 1.2916(50%fib).
AUD/USD : The Australian dollar steadied against the U.S. dollar on Wednesday as the global easing cycle gathered pace with the latest cut from Sweden and traders sold the greenback ahead of expected downward revisions to U.S. jobs data. Later in the day, the Federal Reserve will release the minutes from its August meeting which will show how many members supported a rate cut. The Aussie held at $0.6745, having climbed for four sessions to a one-month top of $0.6749 on Tuesday. It is now up 6.4% from its low in August. Immediate resistance can be seen at 0.6745 (23.6%fib), an upside break can trigger rise towards 0.6783 (Higher BB).On the downside, immediate support is seen at 0.6711 (Aug 20th low), a break below could take the pair towards 0.6627 (38.2%fib).
USD/JPY: The dollar edged higher against the yen on Wednesday ahead of Federal Reserve Chair Jerome Powell's comments later this week. Traders will have also a close eye on a special session of Japan's parliament on Friday, when politicians will scrutinise the Bank of Japan's unexpected decision to raise interest rates last month and the central bank's sudden hawkish turn.BOJ Governor Kazuo Ueda will testify and focus will be on his tone after his influential deputy Shinichi Uchida adopted a more dovish stance earlier this month, helping calm markets. More than half the economists poll published on Wednesday expect the BOJ to raise rates again this year, with those who had a view on which month leaning towards a December increase. Strong resistance can be seen at 147.26(Daily high), an upside break can trigger rise towards 147.97(38.2 %fib). On the downside, immediate support is seen at 145.17(23.6 %fib), a break below could take the pair towards 145.00(Psychological level).
Equities Recap
Japan's nikkei index fell in morning trade on Wednesday due to yen appreciation and caution ahead of U.S. employment data revisions.
The Nikkei was down 0.7% at 37,805.35 as of the midday break, while the broader TOPX fell 0.6% to 2,655.29.
Commodities Recap
Gold prices remained below record highs on Wednesday following a rally driven by Western fund inflows and optimism over potential U.S. rate cuts. Investors are now preparing for the release of the Federal Reserve's latest meeting minutes to gain insights into the extent of future rate reductions.
Spot gold was up 0.1% at $2,517.08 per ounce, as of 0427 GMT, after hitting an all-time high of $2,531.60 on Tuesday. U.S. gold futures rose 0.2% to $2,554.90.
Oil prices slipped on Wednesday on estimates showing swelling U.S. crude inventories and expectations that tensions in the Middle East were easing following a tour of the region by mediators.
Brent crude futures fell 11 cents, or 0.1%, to $77.09 a barrel by 0630 GMT. U.S. West Texas Intermediate crude dipped 14 cents, or 0.2%, to $73.03.
