- The USDIndex slightly below 1-week ahead amid reports of a softer stance on Covid emerging in China’s official rhetoric, which is keeping hopes alive that there won’t be a move back to tighter restrictions. All eyes are on an expected hawkish stance from Chair Powell’s speech today.
- Japan’s factory output fell for a second consecutive month in October, a
- Stocks –The Nikkei closed with a -0.2% loss, the ASX managed a 0.4% gain and Hang Seng and CSI300 are currently up 1.1% and 0.1% respectively. GER40 and UK100 futures are up 0.6% and 0.4% respectively. US futures are underperforming, but also managing slight gains. Wall Street closed mixed with the NASDAQ dropping -0.59% on weakness in tech and the rise in yields.
- Japan’s factory output fell for a 2nd consecutive month in October, China’s factory activity contracted at a faster pace in November, weighed down by softening global demand
- JPY – is holding in the 138-139 range.
- USOil – supported ahead of the OPEC+ meeting on December 4. Energy was lifted by easing in China jitters.
- AUD & NZD on a downward pressure from worse than expected Chinese manufacturing surveys.
- Gold – extendes gain to $1757.
Today – Attention is on Powell’s speech later today, who is likely to reinforce yesterday’s hawkish Fedspeak from Williams, Bullard, and Mester who all stressed rates are headed higher still and could remain so for some time. Elsewhere is EU HCPI, US ADP and Q3 GDP.
Biggest FX Mover @ (07:30 GMT) GBPAUD (-0.25%), declines to 1.7816 from 1.7930. MAs aligning lower and RSI at 34.8 and MACD histogram & signal line remain below 0. H1 ATR 0.00267, Daily ATR 0.01538.
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Andria Pichidi
Market Analyst
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