• Asia roundup: Aussie off lows, Dollar at 2-week peak on revived U.S.-China trade hopes, investors eye ECB guindos's speech - Tuesday, November 26th, 2019

    Source: FxWire Pro - Media Round Ups / 26 Nov 2019 02:04:33   America/New_York

    Market Roundup

    • Oil gains ahead of OPEC Dec. 5 meeting
       
    • Gold dips on China-U.S. trade optimism
       

    Economic Data Ahead

    • (0200 ET/0700 GMT) German Gfk consumer confidence survey

    Key Events Ahead

    • (0315 ET/0815 GMT) European Central Bank Vice-president Luis De Guindos
       
    • (0315 ET/0815 GMT) European Central Bank Executive Board member Yves Mersch's speech
       
    • (0330 ET/0830 GMT) European Central Bank Executive Board member Philip Richard Lane gives a speech
       

    FX Beat

    DXY: The dollar index held firm near 1-1/2 week peak as investors grew more hopeful the United States and China could soon sign an interim deal to end their trade war. The greenback against a basket of currencies traded flat at 98.28, having touched a high of 98.38 on Monday, its highest since November 14.

    EUR/USD: The euro consolidated near a 1-1/2 week low hit in the previous session on data that showed business growth had almost ground to a halt and the services industry growth was weaker than expected. The European currency traded flat at 1.1012, having touched a low of 1.1003 on Monday, its lowest since November 14. Investors’ attention will remain on German Gfk Consumer confidence survey, ahead of the U.S. prelim wholesale inventories, goods trade balance, hosing price index, Richmond Fed Manufacturing Index, new home sales, consumer confidence and Fed Brainard's speech. Immediate resistance is located at 1.1039 (10-DMA), a break above targets 1.1068 (21-DMA). On the downside, support is seen at 1.0995, a break below could drag it below 1.0966.

    USD/JPY: The dollar rallied to a 2-week peak, boosted by optimism on a trade deal between the United States and China. The major was trading 0.1 percent up at 108.95, having hit a high of 109.20 earlier, its highest since November 12. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. prelim wholesale inventories, goods trade balance, hosing price index, Richmond Fed Manufacturing Index, new home sales, consumer confidence and Fed Brainard's speech. Immediate resistance is located at 109.25 (November 5 High), a break above targets 109.48 (November 7 High). On the downside, support is seen at 108.76 (21-DMA), a break below could take it near at 108.66 (5-DMA).

    GBP/USD: Sterling held firm near the 1.2900 handle, supported by hopes that the ruling Conservatives could win a majority in the December 12 election to end a hung parliament. The major traded flat at 1.2894, having hit a low of 1.2829 on Friday, it’s lowest since November 13. Investors’ attention will remain on the development surrounding the general elections, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2930 a break above could take it near 1.2985. On the downside, support is seen at 1.2867, a break below targets 1.2823. Against the euro, the pound was trading flat at 85.40 pence, having hit a low of 86.05 on Friday, it’s lowest since Nov. 12.

    AUD/USD: The Australian dollar steadied after falling to a 1-1/2 month low in the previous session on disappointing domestic economic data that has led investors to narrow the odds on another rate cut from the Reserve Bank of Australia. The Aussie trades 0.1 percent up at 0.6784, having hit a low of 0.6768 on Thursday, it’s lowest since November 14. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.6760, a break below targets 0.6742. On the upside, resistance is located at 0.6806 (10-DMA), a break above could take it near 0.6834.

    NZD/USD: The New Zealand dollar rose, extending previous session gains, amid rising hopes of U.S.-China trade deal. The Kiwi trades 0.1 percent up at 0.6423, having touched a high of 0.6437 on Thursday, its highest level since November 4. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6449, a break above could take it near 0.6465. On the downside, support is seen at 0.6399 (10-DMA), a break below could drag it below 0.6360.  

    Equities Recap

    Asian shares rallied amid signs of new momentum in Beijing’s and Washington’s efforts to end their long trade dispute.

    MSCI's broadest index of Asia-Pacific shares outside Japan surged 0.5 percent.

    Tokyo's Nikkei rose 0.4 percent to 23,373.37 points, Australia's S&P/ASX 200 index gained 0.8 percent to 6,787.50 points and South Korea's KOSPI rallied 0.3 percent to 2,129.07 points.

    Shanghai composite index rose 0.2 percent to 2,910.99 points, while CSI 300 index traded 0.3 percent down at 3,890.18 points.

    Hong Kong’s Hang Seng traded 0.1 percent lower at 26,965.14 points. Taiwan shares added 0.1 percent to 11,576.82 points

    Commodities Recap

    Crude oil prices surged, extending previous session gains after comments from the United States and China revived hopes that both the economies are soon to agree on ending their trade war. International benchmark Brent crude was trading 0.2 percent at $63.69 per barrel by 0510 GMT, having hit a high of $64.25 on Friday, its highest since September 24. U.S. West Texas Intermediate was trading 0.2 percent higher at $57.98 a barrel, after rising as high as $58.71 on Friday, its highest since September 23.

    Gold prices plunged to a 2-week low as the dollar firmed and equities rose on increasing optimism that China and the United States could seal an interim trade deal by year-end. Spot gold was trading 0.1 percent down at $1,454.20 per ounce by 0518 GMT, having touched a low of $1451.53 earlier, its lowest since Nov. 12. U.S. gold futures inched 0.2 percent lower to $1,453.50.

    Treasuries Recap

    On Monday, the U.S. Treasury yields were little changed after the Treasury Department sold $40 billion in two-year notes.

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