- PBOC Sets Yuan Mid-Point at 6.3676 / Dlr Vs Last Close 6.3643.
- New Zealand S/Adj Net Permanent & Long Term Visitors +5470 in August.
- NZ Short Term Visitors +7.4% in August Vs Year Ago.
- NZ Consumer Confidence at 106.0 in Q3 from 113.0 previous Qtr.
- Eurogroup Chief Dijsselbloem Congratulates Alexis Tsipras on Winning Greek Election, Looks Forward to Swift Formation of New Government with Strong Mandate to Continue Reform Process.
- Eurogroup Chief Dijsselbloem Says Ready to Work Closely with the Greek Authorities and to Continue Accompanying Greece in its Ambitious Reform Efforts.
- Fed’s Williams says Rate Decision on Thursday was a ‘Close Call’.
- Fed’s Williams says we are close to our Full Employment Mandate.
- Fed’s Williams says wants to know a little bit more where Economy is going before Raising Rates.
- Fed’s Williams says Jobless Rate will Fall below 5 Pct.
- Fed’s Bullard says Fed should not Get Lost in Minor Details of Labor Market in Looking at Larger Economic Picture.
- Bullard says Fed was wrong to refer to Financial Market in Last Week’s Decision; Policy Should not React to Markets.
- Bullard- Would Have Dissented if he had been a Voting Member at Last Meeting.
- Bullard says Factors Holding down Inflation Will Prove Temporary, and that Prices Will Rise as Oil Prices Stabilize.
- Bullard says Risk of Financial Bubbles re-emerging if Fed Continues to Wait.
- Bullard said would be Concerned if Inflation Expectations Drop but says Recent Movement likely Linked to changes in Oil Prices.
- (0300 ET/0700 GMT) Turkey consumer confidence data.
Key Events Ahead
- (0945 ET/1345 GMT) ECB’s Coeure speaks in Rome.
FX Recap
EURUSD: A quiet Asia, with low volumes as well as limited volatility as Japanese markets remain closed on a three-day holiday until Thursday. While markets completely shrugged off any impact of the Greece election results, which revealed that Greek Prime Minister Alexis Tsipras has been voted to remain leader. It made intraday high at 1.1321 and low at 1.1281. Initial support is seen around at 1.1015 and resistance at 1.1560 levels.USDJPY: The safe-haven currencies such as the Japanese yen, the euro and the Swiss franc were in the demand in Asia with the yen emerging the biggest gainer. USD/JPY failed to resist 120 barrier and mires near lows now, down -0.20% around 119.80. Japanese markets were spared losses, with three-consecutive bank holidays taking place from Monday through Wednesday. Pair made intraday high at 120.14 and low at 119.72 levels. Initial resistance is seen at 123.20 and support is seen at 118.42 levels.GBPUSD: Pound accelerated lower and trading above 1.5500 levels. It is currently trading at 1.5535 levels. It made intraday high at 1.5544 and low at $1.5515 levels. The Federal Reserve’s (Fed) decision came amid several weeks of market turmoil as fears over the strength of China’s economy and markets grew. On Thursday the Federal Open Market Committee (FOMC) decided to keep monetary policy unchanged, contrary to many bets that the policy-setting committee would make the first US interest rate hike in almost a decade. Today is data free session for UK. Market will focus on US macro data release due later today. Initial support is seen at 1.5185 and resistance is seen around 1.5725 levels.NZDUSD: The New Zealand dollar was driven lower on Monday, with several second-tier indicators pointing to renewed weakness in the economy. A consumer confidence gauge fell to its lowest level in three years this quarter, while net migration moderated in August, adding to recent signs that the economic growth is continuing to slow, and weighing on the New Zealand dollar on Monday. Consumer views on the near-term outlook for the economy was the biggest contributor to the drop in sentiment this quarter, with a net -15% of people expecting good economic times for the year ahead, down from a net 4.8% last quarter. Further data released on Monday showed net migration slowing from 5,730 in July to 5,470 last month. Pair is supported above $0.6300 levels. Pair is currently trading at 0.6352 levels. It made intraday high at 0.6399 and low at 0.6348 levels. Initial support is seen at 0.6195 and resistance at 0.6511 levels.AUDUSD: Pair accelerated to the downside and now mires near fresh session lows, having breached the key support at 0.7180 levels. Pair also remains pressured on the back of lower commodity prices while also tracking losses in its OZ neighbour. Looking ahead, markets look forward to the Chinese manufacturing PMI and a host of key US economic data due for release later in the week for further direction on the AUD/USD pair. It made intraday high at 0.7197 and low at 0.7162 levels. Initial support is seen at 0.6908 and resistance at 0.7245 levels.
Equity Recap
Japanese markets were spared losses, with three-consecutive bank holidays taking place from Monday through Wednesday.Hong Kong’s benchmark Hang Seng index shed 1.39% to trade at 21,638.22 points shortly after the opening bell, while mainland China’s benchmark Shanghai Composite fell 0.64% to 3,077.97 points.Korea’s benchmark Kospi index tumbled 1.34% to 1,969.12 points this morning in Seoul, with Samsung Electronics trading 2.4% lower.The benchmark Australian S&P/ASX 200 index plunged 2.44% to 5,044.40 points in Sydney, with almost all 200 stocks on the index trading lower for the day.New Zealand’s benchmark S&P/NZX 50 index fell 0.46% to 5,685.97 points this afternoon in Wellington.Australia’s S&P/ASX 200 index closes down 2.21 pct at 5,056.40 points.
Treasury Recap
South Korea sells 20-year treasury bonds at average yield of 2.325 pct -finance ministry.China finance ministry auctions 20 year bonds at 3.74 pct.Thailand 20.5 bln baht, 28-day Treasury bill average accepted yield 1.48634 pct.New Zealand government bonds rose, sending yields around 2.5 basis points lower along the curve. Two-year yields stood at 2.4 percent, having touched their lowest since 2013.Australian government bond futures had a firm tone, with the three-year bond contract up one tick at 98.110. The 10-year contract added 4.5 ticks to 97.2400.
Commodity Recap
Gold held close to its highest level in nearly three weeks on Monday, boosted by safe-haven demand after the Federal Reserve’s move last week to leave U.S. interest rates unchanged weighed on global equities. Spot gold eased slightly to $1,137.56 an ounce by 0311 GMT, after gaining 3 percent in the previous three sessions. Trading liquidity is likely to be thin during Asian hours due to a three-day holiday in Japan.Oil prices rebounded on Monday from the huge falls booked last Friday, with investor sentiment boosted slightly by news that rig counts declined. Futures for WTI added 0.83% to trade at $45.04 per barrel, while Brent futures were traded 0.31% higher at $47.85 per barrel.
The material has been provided by InstaForex Company – www.instaforex.com
