Global Markets:
- Asian stock markets: Nikkei gained 0.50 %, Shanghai Composite fell 0.40 %, Hang Seng rose 0.05 %, ASX 200 rallied 0.95 %
- Commodities: Gold at $1247 (-0.40 %), Silver at $16.38 (-1.00 %), WTI Oil at $48.40 (+1.00 %), Brent Oil at $50.60 (+0.80 %)
- Rates: US 10-year yield at 2.32, UK 10-year yield at 1.26, German 10-year yield at 0.57
News & Data:
- Australia CPI q/q 0.2 % vs 0.4 % expected
- Australia CPI y/y 1.9 % vs 2.2 % expected
- Australia Trimmed Mean CPI q/q 0.5 % vs 0.5 % expected
- Australia Trimmed Mean CPI y/y 1.8 % vs 1.8 % expected
- New Zealand Trade Balance m/m NZ$242mln vs NZ$100mln expected
- New Zealand Trade Balance y/y -NZ$3.66bln vs -NZ$3.7bln expected
- New Zealand Exports NZ$4.7bln vs NZ$4.6bln expected
- New Zealand Imports NZ$4.46bln vs NZ$4.39bln expected
- Asia stocks, dollar steady as investors await Fed clues – RTRS
Markets Update:
The US Dollar is strengthening a bit ahead of the Fed interest rate decision tonight. The market is not expecting any changes from the Fed, and it is unlikely that there will be any surprises. Therefore, the Fed meeting should be an USD-neutral event.
The Australian Dollar came a bit under pressure overnight, following weaker than expected CPI data. However, losses were limited as the trimmed mean and weighted CPI arrived in line with expectations. AUD/USD traded as low as 0.7890 and strong support is seen between 0.7830 and 0.7840.
NZD/USD is approaching support at 0.74. A break below would suggest that the pair will test support at 0.7340 soon. NZD/USD is heavily overbought in the short-term, and it is likely that there will be retracement before the uptrend continues.
USD/JPY managed to recover as well, amid the broad USD strength and rising equity markets. However, it would need a clear break above 112.50 resistance to confirm the recent low and pave the way for a rally towards 114.
Upcoming Events:
- 09:30 BST – UK GDP
- 15:00 BST – US New Home Sales
- 19:00 BST – Fed Interest Rate Decision
