Japan in focus as strong data drives USD higher and gold into the ground
The last day of trading before the US Thanksgiving holiday turned out to be a really busy one. The main event of a flurry of US economic announcements were stronger than expected durable goods and consumer sentiment reports suggesting a Trump bounce for the economy has started. Fed minutes kept a December rate hike on the front burner with some members having wanted to raise rates earlier this month. This news stoked higher expectations for rate hikes continuing into 2017 sparking a big rally in USD which crushed gold, EUR and JPY.
Gold was also hit by technical selling after breaching $1,200 while JPY was hit the hardest among paper majors tumbling against EUR and GBP as well. The weaker Yen kept a tailwind behind Japanese stocks. Japanese trading could be particularly active today around flash manufacturing PMI and ahead of tomorrow’s inflation report.
There also was a lot of action in commodity markets Wednesday. Copper resumed its uptrend boosting interest in base metal miners that could carry through to Australia trading today, both stocks and AUD pairs. Crude oil shrugged off early weakness and rebounded on a combination of comments from Iraq’s PM indicating his country’s willingness to participate in an OPEC deal and a surprise drawdown in US inventories.
There have been no major announcements after the US close today.
Significant announcements released overnight include:
US durable goods orders 4.8% vs street 1.7%
US durables ex transport 1.0% vs street 0.2%
US flash manufacturing PMI 53.9 vs street 53.5
US jobless claims 251K vs street 250K
US FHFA house prices 0.6% as expected
US new home sales 563K vs street 590K
US consumer sentiment 93.8 vs street 91.6
US DOE crude oil inventories (1.2 mmbbls) vs street 1.0 mmbbls & previous 5.2 mmbbls
US DOE gasoline inventories 2.3 mmbbls vs street 0.9 mmbbls
US natural gas storage (2) BCF vs street 8 BCF
France flash manufacturing PMI 51.5 as expected
France flash service PMI 52.6 vs street 51.9
Germany flash manufacturing PMI 54.4 vs street 54.8
Germany flash service PMI 55.0 vs street 54.0
Upcoming significant economic announcements include:
(Note: 11:30 am in Sydney/Melbourne is currently 1:30 pm in Auckland, 4:30 pm in Vancouver, 7:30 pm in Toronto/Montréal, 12:30 am in London and 8:30 am in Singapore)
11:00 am AEDT Singapore GDP street 1.0%
11:30 am AEDT Japan flash manufacturing PMI previous 51.4
4:00 pm AEDT Japan leading index previous 100.5
7:00 am GMT Germany GDP street 1.5%
7:00 am GMT Germany exports street (0.3%)
7:00 am GMT Germany imports street 0.3%
8:00 am GMT Spain GDP street 3.2%
8:30 am GMT Sweden producer prices previous (0.1%)
9:00 am GMT Germany IFO Busnss Climate street 110.5
9:00 am GMT Germany IFO curnt assessment street 115.0
9:00 am GMT Germany IFO expectations street 106.0