Market Roundup
- Japan Nov IP Forecast 2 Mth Ahead Increases To +6.0 % versus previous -0.9 %
- Japan Nov IP Forecast 1 Mth Ahead Increases To +0.9 % versus previous 0.2 %
- Japan Nov Industrial Output Prelim Mm Decrease To -1.0 % (Forecast -0.6 %) versus previous 1.4 %
- Japan Nov Retail Sales YY Decrease To -1.0 % (Forecast -0.6 %) versus previous 1.8 %
- Thai Nov Customs-Cleared Exports -7.42 Pct Yr/Yr (versus -5.1 Pct In Reuters Poll) – Commerce Ministry
- Thai Nov Customs-Cleared Imports -9.53 Pct Yr/Yr (versus -14.5 Pct In Reuters Poll) – Commerce Ministry
- Thai Nov Customs-Cleared Trade Balance +0.3 Bln Dlrs (versus +1.74 Bln Dlrs In Reuters Poll) – Commerce Ministry
- PBoC sets yuan mid-point at 6.4750 / dolllar versus last close 6.4763
- Japan Econmin Amari says household spending is weak, but real wages and tight labour market are positive factors
- Japan Econmin Amari says reaching 2 pct inflation target is partly a question of where oil prices will settle
Economic Data Ahead
- (0630 ET/ 1130 GMT) Turkey Manufacturing Confidence (previous 105.2)
- (0730 ET/1230 GMT) Turkey Capacity Utilization (previous 75.9%)
Key Events Ahead
No Major Events Scheduled
FX Beat
USD: The dollar index edged down about 0.1 percent to 97.878 and was on track to log a loss of more than 2 percent for the month, but was still up more than 8 percent for the year. USD/JPY: The dollar moved away from a 2-month low against the yen in early Asian trade on Monday, supported by downbeat Japanese economic data and clinging to its recent ranges in holiday-thinned trading. Data released earlier on Monday was yen-bearish, but the market’s reaction was muted. The pair trades at 120.42 levels, 0.14% up, after touching a high of 120.54 levels. Good support building ahead of psychological 120.00 level, 120.05 Friday’s low, 120.01 (Oct 28 low), breaks below can take the pair to 119 levels. Immediate resistance on the upside is located at 120.70 (Trendline) and further ahead at 120.91 (Cloud Base).AUD/USD: The Australian dollar was down 0.2 percent at $0.7274 but still within distance of a 2-week peak of $0.7295 scaled on Friday. Relatively high Australian yields have recently worked in favour of the currency, as the Aussie attempts a minor pullback from Friday’s lows, amid lack of fresh fundamentals triggers as the Australian market remain closed. The Aussie trades at 0.7226 levels after making a high of 0.7282. The pair faces resistance at 0.7283 levels (Dec 15 High), while on the downside, support is located at 0.7240 levels (21 -DMA), break below can take the pair to 0.7224 (Nov 26 Low).NZD/USD: The New Zealand Dollar trades higher at 0.6838 levels after making a daily high of 0.6843 levels. while the greenback softened into the pre-Xmas closing sessions, the kiwi managed a bid from 0.6680 support range post the FOMC meeting. The pair sees immediate support at 0.6806 level, while on the upside, resistance is located at 0.6846 level (Oct 20- HIgh), break above can take the pair to 0.6865 level (Oct 23 High).EUR/USD: The euro was steady against the dollar, trading at $1.0977, up by 0.24%, after having touched a daily high of 1.0978. Immediate support is located at 1.0942 (5- DMA), while on the upside, resistance is seen at 1.0984 (Dec 22 High), break above can take the pair to 1.1011 (Dec 16 High). USD/CNY: China’s yuan edged down against the dollar after marking its first weekly rise in eight weeks. Prior to market open, the PBoC set the midpoint rate at 6.475 per dollar, or 0.06 percent weaker than the previous fix of 6.4713. The spot market opened at 6.4766 per dollar and was trading at 6.4776 at midday, or 0.02 percent weaker than the previous close. The offshore yuan was trading 0.92 percent weaker than the onshore spot, at 6.538 per dollar.
Equities Recap
Asian stocks slipped on Monday amid a lack of immediate directional cues in light year-end trade, although Japanese shares managed to rise following a rebound in crude oil prices from multiple-year lows.MSCI’s broadest index of Asia-Pacific shares outside Japan gave up earlier modest gains and were last down 0.2 percent. The index was on track for an 11 percent loss this year. Shanghai shares scraped out a 0.1 percent gain on Monday, while Hong Kong’s Hang Seng dropped 0.4 percent. Australian market will remain closed on Monday after Friday’s Christmas holiday. Nikkei closed up 0.56 pct at 18,873.35, while Seoul Shares dropped down 1.12 pct.
Commodities Recap
Gold slipped on Monday, tracking lower oil prices, but failed to get safe-haven bids despite weakness in the dollar and Asian equities as liquidity remained thin in a holiday-shortened week. Spot gold eased 0.1 percent to $1,074 an ounce by 0259 GMT. Silver dropped 0.5 percent to $14.27.Oil prices dropped on Monday after the long Christmas weekend, with international crude and product markets still well supplied in excess of demand. Front-month U.S. West Texas Intermediate futures were trading at $37.87 per barrel at 0311 GMT, down 23 cents from their last settlement. Brent was down 16 cents at $37.73 a barrel.
Treasuries Recap
U.S. 10-Year Treasuries yield stood at 2.2516 percent, up by 0.009.Canadian government bond prices were higher across the maturity curve, with the benchmark 10-year rising 34 Canadian cents to yield 1.379 percent and the 2-year price up 4 Canadian cents to yield 0.487 percent.
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