• Asia roundup: antipodeans ease on prospects of U.S. tariffs, greenback rallies on strong U.S. jobs data, Asian shares surge - Monday, December 9th, 2019

    Source: FxWire Pro - Media Round Ups / 09 Dec 2019 00:47:58   America/New_York

    Market Roundup

    • Oil prices slip on trade war impact
       
    • Gold steadies on prospects of U.S. tariffs

    Economic Data Ahead

    • (0200 ET/0700 GMT) German trade balance
       
    • (0430 ET0930 GMT) EZ Sentix investor confidence

    Key Events Ahead

    • No significant events scheduled

    FX Beat

    DXY: The dollar index surged after data released on Friday showed U.S. nonfarm payrolls increased by 266,000 jobs last month, the biggest gain in 10 months, while the unemployment rate eased to 3.5 percent, its lowest level in nearly half a century. The greenback against a basket of currencies traded up at 97.70, having touched a low of 97.36 on Friday, its lowest since November 4.

    EUR/USD: The euro plunged, extending previous session losses, after data released on Friday showing Germany industrial output unexpectedly dropped in October, revived worries about its economic growth outlook. The European currency traded 0.05 percent down at 1.1055, having touched a low of 1.1039 on Friday, its lowest since December 2. Investors’ attention will remain on a series of data from the eurozone economies and EZ sentix investor confidence, amid a lack of data from the U.S. docket. Immediate resistance is located at 1.1080, a break above targets 1.1097. On the downside, support is seen at 1.1042 (21-DMA), a break below could drag it below 1.1025.

    USD/JPY: The dollar declined, extending previous session losses, as investors remained cautious about an escalation in the U.S.-China trade war if Trump goes ahead with planned tariffs on some $156 billion worth of products from China from December 15. The major was trading down at 108.55, having hit a low of 108.42 on Wednesday, its lowest since Nov 21. Investors’ will continue to track the broad-based market sentiment, as U.S. economic calendar remains absolutely data empty. Immediate resistance is located at 108.83, a break above targets 109.02 (10-DMA). On the downside, support is seen at 108.42, a break below could take it near at 108.27.

    GBP/USD: Sterling steadied near a 7-month peak on expectations that the Conservative Party will win this week’s British election. The major traded 0.1 percent up at 1.3145, having hit a high of 1.3165 on Friday, 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 1.3064 (5-DMA)a break below targets 1.3039. Against the euro, the pound was trading up at 84.10 pence, having hit a high of 84.09 earlier, it’s highest since May 2017.

    AUD/USD: The Australian dollar slumped as the greenback rebounded after data showed U.S. job growth increased by the most in 10 months in November. The Aussie trades 0.1 percent down at 0.6831, 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 edged lower after rising to a 4-month peak in the previous session, as investors cautiously awaited New Zealand's government announcement of a burst of fiscal stimulus in a half year review due on Wednesday. The Kiwi trades 0.1 percent down at 0.6554, having touched a high of 0.6576 on Friday, 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 0.6592, a break above could take it near 0.6619. On the downside, support is seen at 0.6519, a break below could drag it below 0.6503.

    Equities Recap

    Asian shares surged as strong U.S. jobs data offset concerns about China’s economy due to the prolonged U.S.-China trade war.

    MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.3 percent.

    Tokyo's Nikkei rallied 0.4 percent to 23,444.09 points, Australia's S&P/ASX 200 index surged 0.4 percent to 6,730.00 points and South Korea's KOSPI gained 0.4 percent to 2,089.48 points.

    Shanghai composite index eased 0.1 percent to 2,909.21 points, while CSI 300 index traded 0.3 percent down at 3,889.01 points.

    Hong Kong’s Hang Seng traded 0.05 percent lower at 26,505.39 points. Taiwan shares added 0.5 percent to 11,662.13 points.

    Commodities Recap

    Crude oil prices eased from multi-week peaks after data showing China’s overall exports of goods and services shrank for a fourth straight month, raised concerns about the damage being done to global demand by the U.S.-China trade war. International benchmark Brent crude was trading 0.2 percent down at $64.19 per barrel by 0428 GMT, having hit a high of $64.86 on Friday, its highest since September 23. U.S. West Texas Intermediate was trading 0.3 percent down at $58.90 a barrel, after rising as high as $59.81 on Friday, its highest since September 17.

    Gold prices steadied after Washington reiterated its stance on a deadline for a new round of U.S. tariffs on Chinese goods this weekend. Spot gold was trading flat at $1,460.05 per ounce by 0432 GMT, having touched a low of $1458.57 earlier, its lowest since Dec. 2. U.S. gold futures were flat at $1,464.90.

    Treasuries Recap

    The Australian government bond futures eased, with the 3-year bond contract dipping 1.5 ticks to 99.280, while the 10-year contract lost 3 ticks to 98.8450. The 10-year yields remain 72 basis points lower than those on Treasuries, compared to 41 basis points this time last year.

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