• Asia roundup: Aussie near 3-week peak ahead of RBA policy meeting, Dollar steadies against Yen as investors eye U.S. services sector data, Asian shares at 4-month high - Monday, July 6th, 2020

    المصدر: FxWire Pro - Media Round Ups / 06 يوليو 2020 03:17:36   America/New_York

    Market Roundup

    • Gold eases as risk appetite improves
       
    • Oil prices gains on tighter supplies
       

    Economic Data Ahead

    • (0430 ET/0830 GMT) UK Markit Construction PMI(Jun)  
       
    • (0430 ET/0830 GMT) EZ Sentix Investor Confidence(Jul)
                     
    • (0500 ET/0900 GMT) EZ Retail Sales (YoY)(May)
       
    • (0500 ET/0900 GMT) EZ Retail Sales (MoM)(May)
       

    Key Events Ahead

    • No Significant Events Scheduled

    FX Beat

    DXY: The dollar index declined, as investors awaited the Institute for Supply Management’s index for non-manufacturing activity due later in the day, which is expected to rise to 50.0 in June from 45.4 in the previous month, indicating activity stopped shrinking. The greenback against a basket of currencies traded 0.3 percent lower at 96.91, having touched a low of 96.81 on Thursday, its lowest since June 24.

    EUR/USD: The euro surged ahead of the economic data from eurozone that is forecast to show a sharp rebound in corporate activity and retail sales, which would ease concerns about the economic outlook. The European currency traded 0.4 percent up at 1.1290, having touched a high of 1.1302 on Thursday, its highest since June 24. Investors’ attention will remain on a series of data from Eurozone economies, EZ Sentix investor confidence and retail sales, ahead of U.S. services PMI by both Markit and ISM. Immediate resistance is located at 1.1302, a break above targets 1.1325. On the downside, support is seen at 1.1215, a break below could drag it below 1.1185.

    USD/JPY: The dollar rallied as investors awaited data expected to show the U.S. services sector rebounded that could boost hopes for an economic recovery from the coronavirus pandemic. However, a steady rise of new coronavirus infections in the United States limited upside. The major was trading 0.2 percent up at 107.67, having hit a high of 108.16 on Wednesday, its highest since June 9. Investors’ will continue to track the broad-based market sentiment, ahead of U.S. services PMI by both Markit and ISM. Immediate resistance is located at 107.90, a break above targets 108.20. On the downside, support is seen at 107.27 (10-DMA), a break below could take it near at 106.73.

    GBP/USD: Sterling rose, extending previous session gains, as investors assessed the probability of Britain signing a trade deal with the European Union by the end of the year. The major traded 0.2 percent up at 1.2499, having hit a high of 1.2530 on Thursday, it’s highest since June 24. Investors’ attention will remain on the geopolitical developments ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2530, a break above could take it near 1.2566. On the downside, support is seen at 1.2427 (10-DMA), a break below targets 1.2393. Against the euro, the pound was trading 0.4 percent down at 90.33 pence, having hit a high of 88.94 on Friday, it’s highest since June 18.

    AUD/USD: The Australian dollar advanced to a near 3-week peak, as the market focused on a Reserve Bank of Australia policy meeting on Tuesday. Investors expect the policy rate to stay at 0.25 percent amid signs Australia’s economic downturn will not be as dire as initially feared. The major trades 0.4 percent up at 0.6968, having hit a high of 0.6974 earlier, it’s highest since June 16. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.7004, a break above could take it near 0.7030. On the downside, support is seen at 0.6899 (10-DMA) a break below targets 0.6860.

    Equities Recap

    Asian shares rallied to a 4-month high as investors counted on super-cheap liquidity and fiscal stimulus to sustain the global economic recovery.

    MSCI's broadest index of Asia-Pacific shares outside Japan rose 1 percent.

    Tokyo's Nikkei surged 1.8 percent to 22,714.44 points, Australia's S&P/ASX 200 index eased 0.7 percent to 6,014.60 points. South Korea's KOSPI jumped 1.6 percent to 2,187.01 points.

    Shanghai composite index rose 5.6 percent to 3,328.51 points, while CSI 300 index traded 5.6 percent up at 4,668.28 points.

    Hong Kong’s Hang Seng traded 3.5 percent higher at 26,251.89 points. Taiwan shares added 1.7 percent to 12,116.70 points.

    Commodities Recap

    Crude oil prices surged, supported by tighter supplies, although concern that a spike in coronavirus cases could curb oil demand in the United States limited upside. International benchmark Brent crude was trading 1.06 percent up at $43.20 per barrel by 0603 GMT, having hit a high of $43.22 earlier, its highest since June 23. U.S. West Texas Intermediate was trading 0.8 percent higher at $40.59 a barrel, after rising as high as $40.73 on Thursday, its highest since June 23.

    Gold prices declined, extending previous session losses as risk sentiment improved ahead of U.S. services sector data, although worries over surging coronavirus cases in some U.S. states limited losses. Spot gold was trading 0.1 percent up at $1,773.24 per ounce by 0607 GMT, having touched a high of $1,789.26 on Wednesday, its highest since October 2012. U.S. gold futures fell 0.4 percent to $1,782.30.

    Treasuries Recap

    The U.S. Treasury yields edged up, with the benchmark 10-year note yield trading at 0.697 percent.

    The Japanese government bonds declined as hopes of economic recovery in China boosted investors’ risk sentiment. The benchmark 10-year JGB futures fell 0.18 point to 151.78, while the 10-year JGB yield rose 1.5 basis points to 0.035 percent. The 20-year JGB yield rose 0.5 basis point to 0.425 percent, edging back to the 16-month high of 0.45 percent touched last week. The 30-year JGB yield rose 0.5 basis point to 0.625 percent, while the 40-year JGB yield was flat at 0.655 percent. The 2-year JGB yield rose 0.5 basis point to minus 0.140 percent. The five-year yield rose 1 basis point to minus 0.095 percent.

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