Aussie Dollar And Yields Drop On Wage Data

Nov 17 21, 07:04 GMT

General trend

USD/JPY trades near ¥115.
Nikkei drops despite higher opening and recent Yen weakness; Index heavyweight Fast Retailing weighs.
S&P ASX 200 has extended declines; CBA weighs on the Financials index.
Shanghai Composite ended morning trading slightly higher (+0.2%).
Hang Seng has remained modestly lower.
Companies due to report during the NY morning include Baidu, Bilibili, Diana Shipping, iQIYI, Lowe’s, Shoe Carnival, Target, TJX, VIA optronics.

Headlines/Economic data

Australia/New Zealand

ASX 200 opened 0.0%.
CBA.AU Reports Q1 (A$) Cash profit 2.2B v 1.8B y/y.
NUF.AU Reports FY21 (A$) Net +65.1M v -456.1M y/y; Underlying EBITDA 370M v 235.8M y/y; Rev 3.2B v 2.85B y/y.
(AU) AUSTRALIA Q3 WAGE PRICE INDEX Q/Q: 0.6% V 0.6%E; Y/Y: 2.2% V 2.2%E.
(NZ) New Zealand Q3 PPI Input Q/Q: 1.6% v 3.0% prior; PPI Output Q/Q: 1.8% v 2.6% prior (Producer prices increased more in the year ended September 2021 than in any other year for more than a decade).
(AU) Australia sells A$1.5B v A$1.5B indicated in 1.25% May 2032 bonds, avg yield 1.9068%, bid to cover 2.50x.
(AU) Reserve Bank of Australia (RBA) offers to buy A$800M in Semi Govt Bonds v A$800M prior; Apr 2024 to Nov 2032.
(NZ) New Zealand PM Ardern: Entire country to transition to traffic light system and leave lockdowns after Nov 29; Auckland border to be removed Dec 15th.

Japan

Nikkei 225 opened +0.3%.
(JP) JAPAN OCT CORE MACHINE ORDERS M/M: 0.0% V +1.8%E; Y/Y: 12.5% V 17.7%E.
(JP) Japan Ruling LDP party considering debating revisions to capital gains tax in 2022 as part of efforts to address income inequality – press.
(JP) Japan Govt said to have proposed paying oil refiners to keep down the price of gasoline – press.
(JP) Japan Oct Trade Balance: -¥67.4B v -¥320.0Be; Adj Trade Balance: -¥444.7B v -¥609.2Be.

Korea

Kospi opened +0.2%.
(KR) South Korea and US diplomats talking about North Korea end of war declaration – Yonhap.
(KR) South Korea reports second largest number of daily cases on record, 3,187.

China/Hong Kong

Hang Seng opened -0.2%; Shanghai Composite opened -0.1%.
(CN) Reportedly US asked China to release oil from reserves as part of discussion on economic cooperation – SCMP.
(CN) China Vice President Wang: Foundation of global economic recovery is not solid; China to continue opening up and provide market opportunities.
3333.HK Said to have dissolved some units of its online marketplace – press.
(CN) China PBOC sets Yuan reference rate: 6.3935 v 6.3924 prior.
(CN) China PBOC Open Market Operation (OMO): Injects CNY50B in 7-day reverse repos v CNY50B prior; Net drain CNY50B v Net drain CNY50B prior.
(CN) China furnishing companies said to be increasing prices due to increases in costs related to logistics and raw materials – Press.

Other

(TW) US President Biden: US will not change its policy on Taiwan, Taiwan makes its own decisions; Not encouraging independence for Taiwan – comments after yesterday’s summit with China President Xi.
(SG) SINGAPORE OCT NON-OIL DOMESTIC EXPORTS M/M: 4.2% V 0.6%E; Y/Y: 17.9% V 18.0%E; Electronic Exports Y/Y: 14.9% v 14.4% prior (exports rise for 11th consecutive month).

North America

(US) Weekly API Crude Oil Inventories: +0.7M v -2.5M prior.
(US) Fed’s Daly (non-voter, dove): Expects to have more clarity on economy by next summer; Fed still has ground to cover on aiding job recovery, If we hadn’t had the Delta variant, I would be thinking about raising rates, but that’s not where we are – Q&A with reporters.
TSLA CEO Musk files form 4 for additional sale of 2.11M options and 934.1K shares on Nov 16th to satisfy tax obligations related to exercising stock options (7th consecutive day of selling, total sales now ~$8.8B, about 5% of his stake).

Europe

(UK) New rules (removing caps on transactions between EU/UK) after Brexit have raised credit and debit fees by £150M/year – press.

Levels as of 00:15ET

Hang Seng -0.4%; Shanghai Composite +0.4%; Kospi -1.1%; Nikkei225 -0.3%; ASX 200 -0.7%.
Equity Futures: S&P500 -0.0%; Nasdaq100 -0.0%, Dax -0.1%; FTSE100 -0.4%.
EUR 1.1327-1.1264; JPY 114.97-114.71; AUD 0.7306-0.7263; NZD 0.7001-0.6980.
Commodity Futures: Gold +0.1% at $1,856/oz; Crude Oil -0.8% at $79.11/brl; Copper -0.0% at $4.34/lb.