• Asia roundup: Japanese Yen trades marginally higher after manufacturing PMI data, Asian markets slightly down, Gold hovers around $1,500 mark- Thursday, August 22, 2019

    Source: FxWire Pro - Media Round Ups / 22 Aug 2019 07:54:47   Europe/London

    Market Roundup

    • Australia’s manufacturing PMI at 51.3 vs 51.6 previous release.
       
    • Australia’s services PMI at 49.2 vs 52.3 previous release.
       
    • Japan flash manufacturing PMI m/m at 49.5 pct vs 49.4 pct previous release.
       
    • Japan all industries activities m/m at -0.8 pct vs 0.5 pct previous release.

    Economic Data Ahead

    • (0315 ET/0715 GMT) French manufacturing PMI, previous 49.7, expected 49.5.
       
    • (0315 ET/0715 GMT) French markit composite PMI, previous 51.9, expected 51.8.
       
    • (0315 ET/0715 GMT) French services PMI, previous 52.6, expected 52.5.
       
    • (0330 ET/0730 GMT) German composite PMI, previous 50.9, expected 50.5.
       
    • (0330 ET/0730 GMT) German manufacturing PMI, previous 43.2, expected 43.0.
       
    • (0330 ET/0730 GMT) German services PMI, previous 54.5, expected 54.1.
       
    • (0400 ET/0800 GMT) Taiwan unemployment rate, previous 3.74 pct.
       
    • (0400 ET/0800 GMT) Euro zone manufacturing PMI, previous 46.5, expected 46.3.
       
    • (0400 ET/0800 GMT) Euro zone markit composite PMI, previous 51.5, expected 51.2.
       
    • (0400 ET/0800 GMT) Euro zone services PMI, previous 53.2, expected 53.0.
       
    • (0600 ET/1000 GMT) UK CBI distributive traddes survey, previous -16, expected -13.
       
    • (0700 ET/1100 GMT) Brazil FGV consumer confidence, previous 88.1.
       
    • (0800 ET/1200 GMT) Brazil mid month CPI m/m, y/y.

     Key Events Ahead

    • (0730 ET/1130 GMT) ECB publishes account of monetary policy meeting.

    FX Recap

    USD: The U.S. dollar index that tracks the greenback against a basket of other currencies inched up 0.02% to 98.32.

    EUR/USD: The euro trades flat against U.S. dollar and remains well supported below 1.11 mark. It made intraday high at $1.1092 and low at $1.1081mark. 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 $1.1158, $1.1220, $1.1390, $1.1472, $1.1550, $1.1620 and $1.1820 marks respectively.

    USD/JPY: The Japanese yen trades marginally higher against U.S. dollar after robust manufacturing PMI data and trading around 106.44 mark. It made intraday high at 106.65 and low at 106.40 levels. A sustained close above 106.73 is required to take the parity higher towards key resistances around  107.56, 108.52, 109.62, 112.60 and 113.98 marks respectively. Alternatively, a daily close below 105.29 will drag the parity down towards key support around 104.20 mark.

    GBP/USD: The pound trades flat against U.S. dollar and stabilizes above $1.2100 mark. A sustained close below $1.2022 requires for dragging the parity down towards key support around $1.1920 and $1.1754 mark respectively. On the other side, key resistances are seen at $1.2177, $1.2226, $1.2383, $1.2576 and $1.2772 levels respectively.

    AUD/USD: The Aussie depreciates against U.S. dollar as Australia’s manufacturing PMI as well as services PMI data miss expectations. The pair made intraday high at $0.6787 and low at $0.6758 levels. A consistent close below $0.6747 requires for downside rally. On the other side, a sustained close above $0.6802 will take the parity higher towards $0.6977 and $0.7076 levels respectively.

    NZD/USD: The New Zealand dollar falls noticeably against U.S. dollar and hits lowest level since Jan 2016. Pair made intraday high at $0.6407 and low at $0.6371. A sustained close above $0.6480 requires for the upside rally. Alternatively, current downside rally will take the parity down towards key supports around $0.6347, $0.6236 and $0.6196.

    Equities Recap

    Japan’s Nikkei was trading 0.02 pct lower at 20,615.50 points.

    Australia’s S&P/ASX200 was trading 0.67 pct higher at 6,513.55 points.

    Hong Kong's hang seng index was trading 0.98 percent lower at 26,013.48 points.

    Taiwan stock was trading 0.01 percent higher at 10,527.55 points.

    South Korea’s kospi was trading 0.40 percent lower at 1,956.06 points.

    India’s NSE Nifty was trading 0.47 pct lower at 10,870.44 points while BSE sensex was trading 0.40 points lower at 36,907.78 points.

    Commodities Recap

    Oil prices were trading slightly lower on Thursday. U.S. Crude Oil WTI Futures were trading 0.23% lower to $55.45. International Brent Oil Futures fell 0.48% to $60.01.

    Gold trades flat at $1,500 on Thursday after disappointed FOMC meeting minutes. Pair made intraday high at $1,504 and low at $1,498 mark. Sustained close above $1,522 requires for the upside rally. Alternatively, reversal from key resistance will drag the parity down towards $1,472 and $1,445 marks respectively.

    Treasuries Recap

    The Japanese government bond yields deteriorated at close of morning session Thursday as Asian markets are yet to digest the FOMC July meeting minutes, released overnight amid ongoing global economic disturbances. At close, the yield on the benchmark 10-year JGB note, which moves inversely to its price, slumped 5 basis points to -0.243 percent, the yield on the long-term 30-year hovered around 0.184 percent and the yield on short-term 2-year slipped 1-1/2 basis points to -0.305 percent.

    Wall street edged up, while the U.S. Treasuries suffered, with the year yield curve briefly inverting again; hopes still remain high of a trade deal between the U.S. and China.

    The Australian government bonds gained during Asian session Thursday despite a dovish FOMC meeting minutes revealed in the overnight session, while investors are still eyeing a plausible trade deal between the United States and China. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, slipped 1-1/2 basis points to 0.917 percent, the yield on the long-term 30-year bond edged tad lower at 1.549 percent while the yield on short-term 2-year too traded 1/2 basis point lower at 0.737 percent.

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