Global Markets:
- Asian stock markets: Nikkei up 0.40 %, Shanghai Composite gained 0.65 %, Hang Seng fell 0.65 %, ASX 200 lost 0.70 %
- Commodities: Gold at $1207 (+0.50 %), Silver at $17.07 (+0.40 %), WTI Oil at $52.30 (+0.35 %), Brent Oil at $54.40 (+0.45 %)
- Rates: US 10-year yield at 2.46, UK 10-year yield at 1.41, German 10-year yield at 0.38
News & Data:
- China GDP SA (QoQ) Q4: 1.7% (est. 1.70%, prev. 1.80%)
- China GDP (YoY) Q4: 6.8% (est. 6.70%, prev. 6.70%)
- China Industrial Production (YoY) Dec: 6.0% (est. 6.10%, prev. 6.20%)
- China Industrial Production(YtD)(YoY)Dec: 6.0% (est. 6.00%, prev. 6.00%)
- China Retail Sales (YoY)Dec: 10.9% (est. 10.70%, prev. 10.80%)
- China Retail Sales (YtD) (YoY) Dec: 10.4% (est. 10.40%, prev. 10.40%)
- Japan Reuters Tankan Manufacturers Index Jan: 18 (prev.16); highest since Aug 2014
- Japan Reuters Tankan Non-Manufacturers Index Jan: 30 (prev.19); highest since June 2015
- Australia HIA New Home Sales (MoM) Nov: 6.1% (prev. -8.50%)
- PBOC sets USD/CNY mid-point at 6.8693 (prev. close 6.8750, prev. fix 6.8568)
- Fed Chair Yellen: Says unwise, risky, to allow US economy to run persistently 'hot'
- Yellen: 'Prudent' to adjust stance of monetary policy gradually
- Yellen: Determining how best to adjust rates to foster strong job growth, low inflation won't be easy
- Yellen: Labour utilization close to estimated long-run level
- Yellen: Inflation likely to reach fed's 2-pct goal over next couple of years
Markets Update:
Risk appetite improved in the Asian session, following better than expected Chinese GDP and retail sales data. The Shanghai Composite rose over 0.60 % on the day, while the Yuan strengthened. USD/CNH fell from 6.85 at the open to a low of 6.8340.
The Dollar weakened again slightly. EUR/USD recovered from the post-ECB losses and rallied to 1.0690 in Asia. Resistance is now seen at 1.0720, followed by 1.0780. GBP/USD rose from 1.2330 to 1.2370 and another test of the 1.2415 resistance level seems likely. Meanwhile, USD/JPY ran into strong resistance at 115.50 and reversed. The short-term technical outlook remains bearish, and further losses seem likely. A break below 114.50 would signal another move towards 113.
The commodity currencies remain strong. AUD/USD extended gains to 0.7590 overnight, and there is little resistance until 0.77 now. NZD/USD is still struggling to take out 0.7240 resistance, but remains well bid nevertheless.
Upcoming Events:
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