• Asia roundup: Kiwi gains as business sentiment improves, Dollar off highs against Yen after Trump signs Hong Kong protest bill, Asian shares tumble - Thursday, November 28th, 2019

    Source: FxWire Pro - Media Round Ups / 01 Dec 2019 09:29:42   America/New_York

    Market Roundup

    • Oil drops as U.S. inventory build
       
    • Gold gains on Hong Kong tensions
       
    • NZ businesses more optimistic in November - ANZ Survey
       

    Economic Data Ahead

    • (0400 ET/0900 GMT) EZ M3 Money Supply
       
    • (0500 ET/1000 GMT) EZ economic sentiment indicator
       

    Key Events Ahead

    • (1135 ET/1635 GMT) ECB Executive Board member Benoît Cœuré gives a speech
       
    • (1500 ET/2000 GMT) ECB Executive Board member Lane’s speech
       

    FX Beat

    DXY: The dollar index consolidated near a 2-week peak, as U.S. economic growth picked up slightly in the third quarter, weekly jobless claims fell, while new orders for key U.S.-made capital goods increased by the most in nine months in October. The greenback against a basket of currencies traded up at 98.32, having touched a high of 98.44 on Wednesday, its highest since November 13.    

    EUR/USD: The euro steadied after falling to a 2-week low in the previous session, as investors awaited series of data from the Eurozone and EZ economies for further clues on the strength of the economy. The European currency traded 0.1 percent up at 1.1009, having touched a low of 1.0992 on Wednesday, its lowest since November 14. Investors’ attention will remain on a series of data from the eurozone economies, EZ money supply, economic sentiment indicator and ECB officials' speeches, as U.S. markets remain closed for Thanksgiving Day. Immediate resistance is located at 1.1040 (10-DMA), a break above targets 1.1059 (21-DMA). On the downside, support is seen at 1.0989, a break below could drag it below 1.0966.

    USD/JPY: The dollar eased from a 5-month peak recorded in the prior session after U.S. President Donald Trump signed into law legislation supporting anti-government protesters in Hong Kong, which could complicate efforts to end the U.S.-China trade war. The major was trading 0.1 percent down at 109.46, having hit a high of 109.60 on Wednesday, its highest since November 12. Investors’ will continue to track the broad-based market sentiment, as U.S. markets remain closed on account of Thanksgiving Day. Immediate resistance is located at 109.74, a break above targets 109.92. On the downside, support is seen at 109.28, a break below could take it near at 108.94 (5-DMA).

    GBP/USD: Sterling surged to a 1-week peak after YouGov model showed British Prime Minister Boris Johnson is on course to win a majority of 68 in parliament at the December 12 election. The major traded 0.2 percent up at 1.2941, having hit a high of 1.2950 earlier, it’s highest since November 21. Investors’ attention will remain on the development surrounding the general elections, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2970, a break above could take it near 1.3000. On the downside, support is seen at 1.2881 (21-DMA), a break below targets 1.2823. Against the euro, the pound was trading flat at 85.06 pence, having hit a high of 84.99 earlier, it’s highest since May 8.

    AUD/USD: The Australian dollar plunged to a 1-1/2 month low as investors raised doubts about whether the United States and China will seal a trade deal after President Donald Trump signed a legislation supporting Hong Kong protesters. The Aussie trades 0.1 percent down at 0.6766, having hit a low of 0.6759 earlier, it’s lowest since October 17. Immediate support is seen at 0.6750, a break below targets 0.6715. On the upside, resistance is located at 0.6795 (10-DMA), a break above could take it near 0.6834.

    NZD/USD: The New Zealand dollar surged after a strong rebound in domestic business confidence. ANZ Bank survey showed NZ businesses were much less pessimistic in November, with its key sentiment gauge at its highest level this year. The survey showed a net 12.6 percent of respondents expected their own businesses to improve in the next 12 months, compared to 3.5 percent expecting business to worsen last month. The Kiwi trades 0.1 percent up at 0.6424, having touched a high of 0.6433 on Wednesday, its highest level since November 21. Immediate resistance is located at 0.6449, a break above could take it near 0.6465. On the downside, support is seen at 0.6393 (21-DMA), a break below could drag it below 0.6360.

    Equities Recap

    Asian shares plunged after U.S. President Donald Trump signed into law legislation backing pro-democracy protesters in Hong Kong.

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

    Tokyo's Nikkei eased 0.1 percent to 23,409.14 points, Australia's S&P/ASX 200 index gained 0.2 percent to 6,864.00 points and South Korea's KOSPI declined 0.4 percent to 2,118.60 points.

    Shanghai composite index fell 0.5 percent to 2,889.69 points, while CSI 300 index traded 0.3 percent down at 3,862.30 points.

    Hong Kong’s Hang Seng traded 0.2 percent lower at 26,910.37 points. Taiwan shares shed 0.3 percent to 11,617.08 points

    Commodities Recap

    Crude oil prices declined, extending losses from the previous session after official data showed U.S. crude and gasoline stocks rose against expectations and production hit a record. International benchmark Brent crude was trading 0.5 percent down at $63.84 per barrel by 0534 GMT, having hit a high of $64.58 on Wednesday, its highest since September 23. U.S. West Texas Intermediate was trading 0.5 percent down at $57.82 a barrel, after rising as high as $58.71 on Friday, its highest since September 23.

    Gold prices surged, reversing some of its previous session losses as investors bought the safe-haven metal on doubts about whether the United States and China will seal a trade deal after President Donald Trump signed a legislation supporting Hong Kong protesters. Spot gold was up 0.2 percent at $1,456.90 per ounce by 0544 GMT, having touched a low of $1449.92 on Tuesday, its lowest since Nov. 12. U.S. gold futures rose 0.1 percent to $1,455.20.

    Treasuries Recap

    The Japanese government bond prices slipped. The 10-year JGB yield rose 2 basis points to minus 0.095 percent, up 5.5 basis points on the month. At the longer end of the market, the 20-year yield edged up 2 basis points to 0.250 percent, while the 30-year JGB yield rose 1.5 basis points to 0.400 percent. The two-year JGB yield rose 1 basis point to minus 0.190 percent. The five-year yield rose 2.5 basis points to minus 0.190 percent.

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