• Asia roundup: Kiwi at 4-month peak, Dollar steadies against Yen on trade deal optimism; Asian shares rally - Friday, December 6th, 2019

    Source: FxWire Pro - Media Round Ups / 08 Dec 2019 10:13:41   America/New_York

    Market Roundup

    • Oil firm on OPEC+ output cut
       
    • Gold set for a weekly rise

    Economic Data Ahead

    • (0330 ET/0830 GMT) UK Halifax house prices

    Key Events Ahead

    • (0400 ET/0900 GMT) OPEC meeting

    FX Beat

    DXY: The dollar index steadied, halting a 6-day losing streak, ahead to a Fed policy meeting on December 10-11 as well as a looming December 15 deadline for imposition of further U.S. tariffs on Chinese goods. The greenback against a basket of currencies traded flat at 97.39, having touched a low of 97.36 on Thursday, its lowest since November 4.

    EUR/USD: The euro surged, extending previous session gains after data on Thursday showed that the eurozone economy grew at a modest pace in the third quarter. The European currency traded 0.05 percent up at 1.1105, having touched a high of 1.1116 on Wednesday, its highest since November 7. Investors’ attention will remain on a series of data from the eurozone economies, ahead of the U.S. nonfarm payroll. unemployment rate, wholesale inventories, Michigan consumer sentiment index and consumer credit change. Immediate resistance is located at 1.1123, a break above targets 1.1140. On the downside, support is seen at 1.1071 (5-DMA), a break below could drag it below 1.1042 (21-DMA).

    USD/JPY: The dollar consolidated within narrow ranges as investors awaited the next signal from China-U.S. trade negotiations amid mixed messages on the state of talks. The major was trading flat at 108.74, having hit a low of 108.42 on Wednesday, its lowest since Nov 21. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. nonfarm payroll. unemployment rate, wholesale inventories, Michigan consumer sentiment index and consumer credit change. Immediate resistance is located at 109.03 (10-DMA), a break above targets 109.29. On the downside, support is seen at 108.65, a break below could take it near at 108.48.

    GBP/USD: Sterling held firm near a 7-month peak recorded in the previous session as it appeared likely the ruling Conservative Party will win a majority in next week’s election and end 3-1/2 years of Brexit-related uncertainty. The major traded up at 1.3155, having hit a high of 1.3166 on Thursday, it’s highest since May 6. Investors’ attention will remain on the development surrounding the general elections, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.3176, a break above could take it near 1.3196. On the downside, support is seen at 1.3120 a break below targets 1.3080. Against the euro, the pound was trading flat at 84.41 pence, having hit a high of 84.30 on Thursday, it’s highest since May 2017.

    AUD/USD: The Australian dollar surged, reversing most of its previous session losses, despite this week's dismal data with third-quarter growth disappointing and the current quarter looking no better. The Aussie trades 0.2 percent up at 0.6843, having hit a high of 0.6862 on Tuesday, it’s highest since November 11. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.6803, a break below targets 0.6782. On the upside, resistance is located at 0.6865, a break above could take it near 0.6882.

    NZD/USD: The New Zealand dollar advanced to a 4-month peak, boosted by a run of upbeat economic data and a favourable ruling on bank capital. The Kiwi trades 0.3 percent up at 0.6540, having touched a high of 0.6563 earlier, its highest level since August 6. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6577, a break above could take it near 0.6592. On the downside, support is seen at 0.6502 (5-DMA), a break below could drag it below 0.6477.

    Equities Recap

    Asian shares rallied as U.S. President Donald Trump’s comments kept investors’ hopes up on a trade deal with China.

    MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.2 percent.

    Tokyo's Nikkei rallied 0.2 percent to 23,354.40 points, Australia's S&P/ASX 200 index surged 0.4 percent to 6,707.00 points and South Korea's KOSPI gained 1.02 percent to 2,081.85 points.

    Shanghai composite index rose 0.4 percent to 2,912.01 points, while CSI 300 index traded 0.6 percent up at 3,902.39 points.

    Hong Kong’s Hang Seng traded 1.0 percent higher at 26,478.10 points. Taiwan shares added 0.1 percent to 11,609.64 points.

    Commodities Recap

    Crude oil eased, moving away from recent highs after OPEC agreed to increase output curbs in early 2020 but failed to promise further steps after March. International benchmark Brent crude was trading 0.2 percent down at $63.13 per barrel by 0549 GMT, having hit a low of $60.29 on Tuesday, its lowest since November 20. U.S. West Texas Intermediate was trading 0.2 percent down at $58.21 a barrel, after rising as high as $59.10 on Thursday, its highest since September 23.

    Gold prices consolidated within narrow ranges as risk sentiment improved after U.S. President Donald Trump's latest comments rekindled hopes of a trade deal with China. Spot gold was trading flat at $1,474.93 per ounce by 0555 GMT, having touched a high of $1483.97 on Wednesday, its highest since Nov. 7. U.S. gold futures were down 0.2 percent to $1,480.80.

    Treasuries Recap

    The Japanese government bond futures fell toward an 8-month low, with the benchmark 10-year JGB futures falling 0.30 point to 152.5. The 10-year JGB yield rose 2 basis points to minus 0.025 percent. The 20-year JGB yield rose 2.5 basis points to 0.290 pecent. The 30-year JGB yield rose 2 basis points to 0.435 percent. The 40-year JGB yield rose 1.5 basis points to 0.455 percent. The five-year yield rose 2.5 basis points to minus 0.130 percent. At the short end of the curve, the two-year JGB yield rose 1.5 basis points to minus 0.140 percent.

    The New Zealand 10-year bond yields were up a steep 18 basis points on the week, against 10 basis points for Aussie paper. The Aussie bond currently yields 37 basis points less than the Kiwi, compared to 11 basis points early this month.

    The Australian three-year bond futures were off 1.5 ticks on Friday at 99.300, a drop of 5 ticks for the week.

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