11 Jan: US$ dives on a report that China may halt US Treasury purchases. Australian Retail Sales ahead.

By | January 11, 2018

 

The US$ has reversed the mild gains of the previous session,  under pressure against all major counterparts, particularly the Jpy after a Bloomberg report that officials reviewing China’s foreign-exchange holdings have reportedly recommended slowing or halting purchases of U.S. Treasuries. The Jpy has been the strongest currency following the China headline, which added to the news on Monday that the BoJ will cut its JGB purchases, increasing speculation that the BOJ is preparing to trim its stimulus measures. In other markets, the winning streak has ended in the stock markets, with the major indices taking a bit of a breather and ending the day mildly lower. The US 10 year yield briefly spiked to 2.599% although it has since come back a little, currently at 2.55%. WTI remains strong, after a larger than expected inventory drawdown, while the metals spiked higher on the back of the weaker dollar, before giving up some of their gains.

Thursday will begin with the November Australian Retail Sales (exp 0.4%), with the other Asian data being the China New Loans and the Japan Leading Economic Index and Coincident Index. Europe will look to the ECB Monetary Policy Meeting Minutes and the EU Industrial Production, while the US will focus on the December PPI (exp 0.2% mm, 3.0% yy), the weekly Jobless Claims and a speech by the Fed’s Dudley.

CURRENCIES
EURUSD: 1.1953
Res  1.1985  1.2020  1.2050
Sup  1.1915  1.1885  1.1850
USDJPY: 111.38
Res  112.80  113.00  113.20
Sup  111.25  111.00  110.80
GBPUSD: 1.3507
Res  1.3540  1.3565  1.3585
Sup  1.3480  1.3455  1.3425
USDCHF: 0.9785
Res  0.9815  0.9845  0.9870
Sup  0.9755  0.9735  0.9700
AUDUSD: 0.7836
Res  0.7850  0.7865  0.7875
Sup  0.7820  0.7805  0.7790
NZDUSD: 0.7192
Res  0.7210  0.7230  0.7245
Sup  0.7160  0.7140  0.7110
INDICES / COMMODITIES
S&P: 2747
Res  2750  2755  2760
Sup  2740  2735  2730
DJI: 25328
Res  25370  25410  25450
Sup  25305  25270  25225
ASX SPI: 6029
Res  6050  6070  6090
Sup  6015  5985  5955
XAUUSD: 1319
Res  1320  1325  1330
Sup  1315  1310  1305
XAGUSD: 16.99
Res  17.10  17.20  17.30
Sup  16.90  16.80  16.70
WTI: 63.41
Res  63.65  64.00  64.50
Sup  63.00  62.55  62.10