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Another steady session to end the week saw US equity markets at all-time highs with the Nasdaq +0.6%, the S&P 500 +0.4%, and the Dow Jones +0.1%. U.S. 10-year yields fell 2bps to 4.08%, while crude oil fell 1.9% to $69.30 a barrel. AUD/USD closed the week at 0.6706 after trading in a narrower 0.66945/.6719 range.
• Asian equities finished the week with a strong performance on Friday as the Shenzhen and Hang Seng each pushed 3.6. The ASX slid -0.9% as utilities slumped -3.5% and real estate -2.0%. AUD/USD set 0.6718 highs in the early afternoon following stronger than expected retail sales & industrial production out of China before settling back 0.6705.
• European equities opened mixed as the Stoxx, CAC and DAX pushed 0.3% while the FTSE reversed -0.2%. The US 10yr worked its way back above 4.10% and brent traded either side of $74.50 per barrel. EUR/USD and GBP/USD climbed to 1.3070 and 1.0849 following a beat in September UK retail sales (headline 3.9% y/y vs 3.2% exp.).
• A quiet session into the London lunch with the local unit continuing to trade 0.6710 while NZD/USD grinded higher to 0.6076. USD/JPY traded above back above 150 after headlines said the BOJ was to likely mull changing a view of upside price risks saw it fall briefly fall to 149.58. EUR/USD traded on 1.0852 highs, GBP/USD steadied 1.3045 and US equities were a touch bid into open.
• US Housing Starts for September fell by 0.5% to 1.354 mio weaker than expectations of a 0.4% decline to 1.350 mio due to significant negative revisions. Building Permits fell by 2.9% to 1.428 mio, also weaker than expectations of a 0.7% decline to 1.460 mio and also with negative revisions.
• Little reaction to the data although the USD was marginally weaker across the NY morning with the local unit moving up to 0.6719 highs while NZD/USD reached 0.6079 and EUR/USD made highs of 1.0864. USD/JPY slowly made its way to lows under 149.60 while USD/CAD proved to be the exception as it rose to highs of 1.38075 into the London rate set.
• Wall St was a little mixed in early trade with the Dow opening weaker and remaining around 0.2% across the NY morning while the S&P opened up around 0.2% and remained there. The Nasdaq opening in positive territory and holding 0.5% type gains in early trade. European markets generally closed a little higher with the CAC and DAX up 0.4% though the FTSE underperformed to close down 0.3%.
• Some mixed flows over a quiet NY afternoon with USD/JPY sliding to new lows of 149.37 while EUR/USD moved up to 1.0868 highs. Heading the other way, USD/CAD rose to 1.3815 highs with other majors generally mid-range as the local unit settled near 0.6700 to see out the week.
• Wall St ticked higher over the NY afternoon to close in positive territory with the Dow up 0.1% while the S&P gained 0.4% and the Nasdaq closed up 0.6%.
To watch for
• UK – Oct. Rightmove House Prices
• CH – 1yr, 5yr Loan Prime Rate
• JP – Sep. Tokyo Condominiums for Sale
• Germany – Sep. PPI
• US – Sep. Leading Index
Mid-market rates.
Currency Pair | Mid-market rate |
AUD/USD | 0.6710 |
AUD/NZD | 1.1049 |
AUD/JPY | 100.38 |
AUD/CNH | 4.7765 |
AUD/EUR | 0.6173 |
AUD/GBP | 0.5141 |
AUD/HKD | 5.2133 |
Chart of the day
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