9 Nov: Markets mostly rangebound ahead of tomorrows US holiday. China CPI the main focus today.

By | November 9, 2017

 

Currency markets have traded mixed on Wednesday, with the Yen and Sterling being the main focus. The Yen was underpinned because US bond yields remain heavy and also because of growing doubts as to whether the US tax plan will be passed, while Sterling is weak, weighed down by the political tensions in the UK and by the growing doubts over PM Theresa May’s ability to deliver a decent Brexit deal. Other currencies are generally steady and rangebound against the dollar although note that the Kiwi is higher after the RBNZ left rates unchanged just now – as expected. In other markets, the metals are a little higher; while stocks are steady and WTI settled lower after data showed crude supplies rose while US production jumped to a record all-time high last week, offsetting a larger-than-expected draw in refineries.

The RBNZ just kicked things off with Interest Rate Decision and the focus will now turn to the Japan Trade and Current Account balance for September, the Australian Home Loans data and the China CPI/PPI for October (exp; CPI  0.2%mm 1.8%yy, PPI 6.6%yy). Europe and the US will be fairly quiet, with the German Trade Balance and Current Account being the main feature in Europe, and with just the weekly Jobless Claims (exp +231K) and the Wholesale Inventories (Oct – +0.3%) to come from the US ahead of tomorrow’s US Veterans Day holiday. With Donald Trump being in China, expect to see ongoing headlines coming from there.

CURRENCIES
EURUSD: 1.1596
Res  1.1605  1.1615  1.1625
Sup  1.1580  1.1565  1.1555
USDJPY: 113.79
Res  114.00  114.35  114.75
Sup  113.50  113.35  112.95
GBPUSD: 1.3115
Res  1.3140  1.3180  1.3220
Sup  1.3085  1.3040  1.2995
USDCHF: 1.0000
Res  1.0010  1.0025  1.0040
Sup  0.9975  0.9960  0.9945
AUDUSD: 0.7679
Res  0.7700  0.7730  0.7760
Sup  0.7650  0.7625  0.7600
NZDUSD: 0.6949
Res  0.6965  0.6985  0.7005
Sup  0.6930  0.6915  0.6890
INDICES / COMMODITIES
S&P: 2591
Res  2595  2600  2605
Sup  2580  2575  2570
DJI: 23491
Res  23510  23550  23600
Sup  23410  23390  23345
ASX SPI: 6010
Res  6010  6020  6040
Sup  5990  5970  5950
XAUUSD: 1282
Res  1285  1290  1295
Sup  1280  1275  1270
XAGUSD: 17.05
Res  17.25  17.40  17.55
Sup  16.90  16.80  16.70
WTI: 56.72
Res  57.35  57.90  58.70
Sup  56.35  55.80  55.20