• Asia roundup: Aussie strengthens on robust retail sales data, Asian markets drastically down, Gold hovers around $1,430 Mark - Friday, August 02, 2019

    Source: FxWire Pro - Media Round Ups / 04 Aug 2019 13:23:58   Europe/London

    Market Roundup

    • Australia June retail sales m/m at 0.4 pct vs 0.1 pct previous release (expected 0.3 pct).
       
    • Australia PPI q/q at 0.4 pct vs 0.4 pct previous release.
       
    • Japan y/y monetary base at 3.7 pct vs 4.0 pct previous release.
       
    • Japanese yen strengthens against U.S. dollar, hits highest level since June 25.
       
    • Yen rises after Trump’s announcement regarding additional 10% tariff on $300B worth of Chinese imports, starting from Sept 01.

    Economic Data Ahead

    • (0300 ET/0700 GMT) Spain unemployment change (previous -63.8K, expected -21.4K).
       
    • (0330 ET/0730 GMT) Swiss manufacturing PMI (previous 47.7, expected 47.0).
       
    • (0400 ET/0800 GMT) Italy industrial production (previous 0.9 pct, expected -0.3 pct).
       
    • (0430 ET/0830 GMT) UK construction PMI (previous 43.1, expeccted 46.0).
       
    • (0500 ET/0900 GMT) Italy retail sales (previous -0.7, expected 0.4).
       
    • (0500 ET/0900 GMT) Euro PPI (previous -0.1, expected -0.3).
       
    • (0500 ET/0900 GMT) Eurozone retail sales (previous 1.3 pct, expected 1.3 pct).
       
    • (0730 ET/1130 GMT) India M3 money supply (previous 10.3 pct).

    Key Events Ahead

    • (0830 ET/1230 GMT) US NFP job data (previous 224K, expected 164K).

    FX Recap

    USD: The U.S. dollar index that tracks the greenback against a basket of other currencies inched up 0.1% to 98.218.

    EUR/USD: The euro was flat at $1.1074, having eased back from a $1.1026 overnight. It made intraday high at $1.1096 and low at $1.1069 mark. A consistent close below $1.1074 will drag the parity down towards key supports around $1.1026 and $1.0852 levels respectively. Alternatively, reversal from key support will drag the parity higher towards key resistances around $1.1220, $1.1390, $1.1472, $1.1550, $1.1620 and $1.1820 marks respectively.

    USD/JPY: The Japanese yen strengthens against U.S. dollar, hits highest level since June 25. It made intraday high at 107.56 and low at 106.85 levels. A sustained close above 107.33 is required to take the parity higher towards key resistances around 108.52, 109.62, 112.60 and 113.98 marks respectively. Alternatively, a daily close below 107.33 will drag the parity down towards key support around 104.20 mark.

    GBP/USD: The pound trades almost flat against U.S. dollar and stabilizes above $1.21 mark. Pair made intraday high at $1.2144 and low at $1.2088 mark. A sustained close below $1.2126 requires for dragging the parity down towards key support around $1.2087, $1.1920 and $1.1754 mark respectively. On the other side, key resistances are seen at $1.2383, $1.2576 and $1.2772 levels respectively.

    AUD/USD: The Aussie rises against major peers on robust retail sales data.The pair made intraday high at $0.6818 and low at $0.6795 levels. A consistent close below $0.6798 requires for downside rally. On the other side, a sustained close above $0.6852 will take the parity higher towards $0.6977 and $0.7076 levels respectively.

    NZD/USD: The New Zealand dollar falls gradually against U.S. dollar and currently trading around $0.6537 mark. A sustained close above $0.6585 requires for the upside rally. Alternatively, key support was seen at $0.6488 mark.

    Equities Recap

    Japan’s Nikkei was trading 2.4 pct lower at 21,024.50 points.

    Australia’s S&P/ASX200 was trading 0.38 pct lower at 6,762.55 points.

    Hong Kong's hang seng index was trading 2.20 percent lower at 26,959.22 points.

    South Korea’s Kospi was trading 0.71 percent lower at 1,999.58 points.

    Taiwan stock was trading 1.70 percent lower at 10,550.61 points.

    India’s NSE was trading 0.67 pct lower at 10,907.45 points and BSE Sensex was trading 0.60 pct lower at 36,792.63 points.

    Commodities Recap

    Oil prices rebounded on Friday in Asia after plunging more than 7% on Trumps’ overnight tweet for more tariffs on Chinese goods. U.S. WTI crude Futures rose 2% to $55.05 by 12:30 AM ET. International Brent Oil Futures gained 2.5% to $62.02.

    Gold falls on Friday and currently hovers around $1,430 mark. It touched $1,449 mark in early Asian hours and made low of $1,430 mark.

    Treasuries Recap

    Australian government bond yields plunged during Asian session of the last trading day of the week Friday, tracking a massive slump in the U.S. 10-year counterpart after President Donald Trump announced on Twitter a new set of trade tariffs on goods imported from China. Also, the country’s retail sales for the month of June slightly exceeded market expectations, also rising from the previous reading in May.

    The yield on Australia’s benchmark 10-year note, which moves inversely to its price, plunged 11-1/2 basis points to 1.095 percent, the yield on the long-term 30-year bond slumped 9-1/2 basis points to 1.774 percent and the yield on short-term 2-year suffered nearly 8 basis points at 0.793 percent.

    The Japanese government bond yields suffered at the cost of an additional tariff imposition by the United States President Donald Trump on Chinese goods, citing, inappropriate progress on trade talks, hinting at further stern decisions, if no conclusion is reached at the earliest.

    At close, the yield on the benchmark 10-year JGB note, which moves inversely to its price, plunged 16-1/2 basis points to -0.165 percent, the yield on the long-term 30-year suffered 4 basis points at 0.324 percent and the yield on short-term 2-year slumped 20 basis points to -0.203 percent.

     

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