FX News Today
FX Action: USDJPY traded above 113.00 for the first time since mid July, posting a high at 113.02, before settling to a narrow range just under the figure. AUDJPY concurrently posted a three-session high and while EURJPY also lifted, the cross remained just off recent five-month highs. Buoyant stock markets have kept the Yen on a softening path. China equities recorded gains, with the Shanghai Composite showing a 1.3% gain in the first hour of trading in the PM session, posting an eight-week high earlier on the day. The MSCI Asia-Pacific (ex Japan) index is showing a 0.4% advance, although also off its highs. Chinese equities were lifted by news that MSCI is considering quadrupling the weighting of Chinese big-caps in its global benchmarks.
Asian Market Wrap: 10-year Treasury yields are down -0.4 bp at 3.093%, 10-year JGB yields pulled back -0.6 bp to 0.117%. Yields remain at high level ahead of the Fed decision today and as global central banks continue to reign in stimulus. Asian stock markets meanwhile moved mostly higher, although Japanese indices traded mixed with the Topix retreating from its highest level in almost eight months. Hong Kong returned from holiday and rallied in catch up trade, while Chinese markets got a boost from reports that MSCI is considering to lift the weight of shares in its global indexes. US President Trump told the UN that the trade deficit with China “is just not acceptable”. Meanwhile the Asian Development Bank warned that the US-China trade war is dimming Asia’s growth outlook for next year. The Topix is down -0.26%, against a 0.30% gain in the Nikkei. Hang Seng and CSI 300 rallied 1.83% and 1.84% respectively, the ASX is little changed at +0.02%. U.S. futures are also broadly higher. Oil prices are slightly lower, but the front end Nymex future continues to trade above USD 72 per barrel.
Charts of the Day
Main Macro Events Today
- Federal Reserve Interest Rate Decision – Expectations – monetary policy decisions are much awaited as they impact all aspects of the monetary section of the economy. Today, the Fed is expected to raise interest rates by 0.25% to 2.25%.
Support and Resistance Levels