Global Markets:
- Asian stock markets: Nikkei up 0.05 %, Shanghai Composite gained 0.80 %, Hang Seng rose 0.45 %, ASX 200 rallied 0.75 %
- Commodities: Gold at $1240 (-0.10 %), Silver at $16.22 (-0.25 %), WTI Oil at $46.35 (-0.10 %), Brent Oil at $48.80 (-0.10 %)
- Rates: US 10-year yield at 2.28, UK 10-year yield at 1.22, German 10-year yield at 0.56
News & Data:
- Japan Tankan Index 26.0 vs 26.0 previous
- Australia MI Leading Index -0.1 % vs 0.0 % previous
- PBoC Sets Yuan Mid-Point At 6.7451
- Dollar’s decline, China optimism cheer Asia stocks, commodities – RTRS
Markets Update:
Overnight, the Euro retraced some of its gains from yesterday, although it remains bid overall. Support is seen at 1.15, followed by 1.1480 and stronger support at 1.1430. The EUR/USD is likely to consolidate ahead of tomorrow´s ECB meeting, where President Draghi might signal that QE will end soon.
GBP/USD traded 1.3020-40 overnight. The Pound came under pressure after yesterday’s UK inflation data, but the broad USD weakness is keeping the pair above 1.30. Should 1.30 support break, a retracement towards 1.2920 is likely.
USD/JPY is consolidating around 112. The Bank of Japan will announce its rate decision tomorrow. No changes are expected, and the central bank is very likely to maintain its QE programme for a while. This should keep USD/JPY at least above 110.
The Australian Dollar remains strong. Solid Chinese economic data, rising commodity prices and a slightly hawkish RBA continue to support the currency, and AUD/USD is likely to test 0.80 soon.
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