• Asia roundup: Aussie hits fresh 3-month high at $0.7842 mark, Gold surprisingly higher, Asian markets in green - Tuesday, January 02, 2018

    Source: FxWire Pro - Commentary / 02 Jan 2018 01:56:18   America/New_York

    Market Roundup

    • China December Caixin/Markit Manufacturing PMI rises to 51.5 (vs Poll 50.6, Nov 50.8).
    • China December Official Manufacturing PMI at 51.6 (poll 51.6) vs 51.8 in Nov.
    • China December Official Services PMI rises to 55.0 vs November 54.8.
    • Asian factories end 2017 on mixed note; Central banks seen hiking slowly.
    • Singapore's solid Q4 growth bolsters bets on Central bank tightening.
    • South Korea's Moon says better relations linked to resolving North Korea nuclear issue.
    • Australia home prices slip in Dec as Sydney slows.
    • German parties at odds ahead of coalition talks.

    Economic Data Ahead

    • (0315 ET/0815 GMT) Spain December Manufacturing PMI, forecast 56.0, 56.1 last.
    • (0345 ET/0845 GMT)0 Italy December Markit/ADACI Manufacturing PMI, forecast 58.5, 58.3 last.
    • (0350 ET/0850 GMT) France December Markit Manufacturing PMI, forecast 59.3, 59.3 last.
    • (0355 ET/0855 GMT) Germany December Markit/BME Manufacturing PMI, forecast 63.3, 63.3 last.
    • (0400 ET/0900 GMT) Euro Zone December Markit Manufacturing Final PMI, forecast 60.6, 60.6 last.
    • (0430 ET/0930 GMT) UK December Markit/CIPS Manufacturing PMI, forecast 58.0, 58.2 last.

    Key Events Ahead

    • No major events were scheduled for the day.

    FX Recap

    USD: The global dollar index rose to 92.163 from the previous close of 92.28.

    EUR/USD: The euro rises gradually against U.S. dollar and remains well supported above $1.20 mark. It made intraday high at $1.2025 and low at  $1.2002 mark. Intraday bias remains bullish till the time pair holds key support at $1.1936 mark. Immediate support was seen at $1.1717 and resistance was seen at $1.2099 mark.  

    USD/JPY: The yen trades marginally lower against U.S. dollar. It made intraday high at 112.79 and low at 112.56 levels. A sustained close above 112.59 is required to take the parity higher towards key resistances around 112.96, 113.75, 114.17, 115.37 and 117.42 marks. Alternatively, a daily close below 112.59 will drag the parity down towards key supports around 111.45, 109.23, 108.12 and 107.50 marks respectively.

    GBP/USD:  The pound trades higher and was currently trading around $1.3521 mark against the U.S. dollar. Against the euro the pound trades almost flat at 0.8894 mark. Intraday bias remains bullish till the time pair holds key support at $1.3428 mark. Immediate resistance was seen at $1.3549 and $1.3657 mark respectively.

    AUD/USD: The Australian dollar hits fresh 3-month high at $0.7842 mark against U.S. dollar. The next chart targets are $0.7884 and $0.7898, both peaks from October. On the other side, a sustained close below $0.7801 will drag the parity down towards key supports around $0.7723 and $0.7640 marks respectively.

    NZD/USD: The kiwi hits fresh 3-month high at $0.7125 mark against U.S. dollar. Intraday bias remains bullish till the time pair holds key support at $0.6780 mark.

    Equities Recap

    Shanghai composite index to open up 0.2 pct at 3,314.03 points and China's CSI300 index to open up 0.4 pct at 4,045.21 points.

    Japanese banks will be closed in observance of the 4 - day Bank Holiday.

    Australia’s S&P/ASX200 was trading 0.32 pct lower at 6,046.55 points.

    Hong Kong’s hang seng was trading 1.66 pct higher at 30,415.55 points.

    Taiwan stock was trading around 0.40 pct higher at 10,684.87 points.

    South Korea’s Kospi was trading 0.39 percent lower at 2,477.32 points.

    India’s NSE Nifty was trading around 0.12 percent higher at 10,448.70 points and BSE Sensex was trading at 0.02 percent higher 33,812.06 points.

    Commodities Recap

    Oil prices posted their strongest opening to a year since 2014 on Tuesday, with crude rising to mid-2015 highs amid large anti-government rallies in Iran and ongoing supply cuts led by OPEC and Russia. U.S. West Texas Intermediate (WTI) crude futures were at $60.61 a barrel at 0423 GMT, up 19 cents, or 0.3 percent, after hitting $60.73 earlier in the day, the highest since June 2015. Brent crude futures, the international benchmark, were at $67.12 a barrel, up 25 cents, or 0.4 percent, after hitting a May 2015 high of $67.27 a barrel earlier in the day. It was the first time since January 2014 that the two crude oil benchmarks opened the year above $60 per barrel.

    Gold prices hit over 3-month highs on Tuesday, supported by technical factors after the precious metal broke through strong resistance last week. Spot gold rose 0.2 percent to $1,305 an ounce at 0114 GMT, having hit its highest since September 26 at $1,307.63 earlier in the session. Gold benefited from technically driven momentum after closing above its 100-day moving average last week and breaching strong resistance at $1,300 on Friday. U.S. gold futures inched down 0.2 percent to$1,307.20 an ounce. Spot gold rose 13 percent last year to mark its best year since 2010.

    Treasuries Recap

    Australian government bond futures eased a touch in the wake of the China news, with the three-year bond contract off 2.5 ticks at 97.815. The 10-year contract lost 2 ticks to 97.3200.

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