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For the 24 hours to 23:00 GMT, the USD declined 0.07% against the JPY and closed at 113.61.

Yesterday, the Bank of Japan (BoJ) Governor, Haruhiko Kuroda, reiterated the need to continue with the central bank's current monetary stimulus in order to meet its 2.0% inflation target.

In economic news, Japan's preliminary machine tool orders advanced 49.9% on an annual basis in October. In the prior month, machine tool orders had risen 45.0%.

In the Asian session, at GMT0400, the pair is trading at 113.62, with the USD trading marginally higher against the JPY from yesterday's close.

The pair is expected to find support at 113.34, and a fall through could take it to the next support level of 113.05. The pair is expected to find its first resistance at 113.82, and a rise through could take it to the next resistance level of 114.01.

Moving ahead, investors would await Japan's preliminary 3Q GDP data, set to release overnight.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

Daily Pivots: (S1) 0.7622; (P) 0.7661; (R1) 0.7695; More...

Break of 0.7624 support indicates that larger decline from 0.8124 is resuming. Intraday bias is back on the downside. Deeper fall should be seen to next key cluster level at 0.7322/8. Nonetheless, break of 0.7694 resistance will now indicate short term bottoming and turn bias back to the upside for 0.7896 resistance and possibly above.

In the bigger picture, corrective rise from 0.6826 medium term bottom is likely completed at 0.8124, after hitting 55 month EMA (now at 0.8067). Decisive break of 0.7328 key cluster support (61.8% retracement 0.6826 to 0.8124 at 0.7322) will confirm. And in that case, long term down trend from 1.1079 (2011 high) will likely be resuming. Break of 0.6826 will target 61.8% projection of 1.1079 to 0.6826 from 0.8124 at 0.5496. This will now be the favored case as long as 0.7896 near term resistance holds.

For the 24 hours to 23:00 GMT, the USD marginally declined against the CHF and closed at 0.9965.

On the economic front, Switzerland’s total sight deposits fell to a level of CHF577.5 billion in the week ended 10 November, compared to a level of CHF577.8 billion reported in the previous week.

In the Asian session, at GMT0400, the pair is trading at 0.9966, with the USD trading slightly higher against the CHF from yesterday’s close.

The pair is expected to find support at 0.9940, and a fall through could take it to the next support level of 0.9913. The pair is expected to find its first resistance at 0.9990, and a rise through could take it to the next resistance level of 1.0013.

Looking ahead, market participants would eye Switzerland’s producer and import prices data for October, slated to release in a few hours.

The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.

For the 24 hours to 23:00 GMT, the USD rose 0.36% against the CAD and closed at 1.2737.

In the Asian session, at GMT0400, the pair is trading at 1.2742, with the USD trading marginally higher against the CAD from yesterday’s close.

The pair is expected to find support at 1.2698, and a fall through could take it to the next support level of 1.2654. The pair is expected to find its first resistance at 1.2766, and a rise through could take it to the next resistance level of 1.2790.

Amid a lack of macroeconomic releases in Canada today, investor sentiment would be governed by global macroeconomic events.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

GBP/USD - 1.3103

Most recent candlesticks pattern   : N/A

Trend                                 : Near term down

Tenkan-Sen level                 : 1.3113

Kijun-Sen level                    : 1.3099

Ichimoku cloud top              : 1.3158

Ichimoku cloud bottom        : 1.3158

New strategy  :

Stand aside

Position : -

Target :  -

Stop : -

Despite falling to 1.3062 yesterday, lack of follow through selling on break of previous support at 1.3085 and the subsequent recovery suggest consolidation would be seen and bounce to 1.3130-35 cannot be ruled out, however, reckon upside would be limited to 1.3160-70 and bring another decline later, below said support at 1.3062 would revive bearishness for weakness towards support area at 1.3027-39 but break there is needed to confirm decline has resumed for further fall to psychological support at 1.3000.

In view of this, would not chase this fall here and would be prudent to stand aside in the meantime. Above 1.3160-70 would prolong choppy trading and bring recovery to 1.3190-00 but said resistance at 1.3230 would hold from here, bring further consolidation. Only break of said resistance at 1.3230 would extend the erratic rise from 1.3039 to 1.3250, then 1.3275-80.

Daily Pivots: (S1) 1.2628; (P) 1.2723; (R1) 1.2782; More....

No change in USD/CAD's outlook as correction from 1.2916 is still in progress. Near term outlook will stay bullish as long as 1.2598 resistance turned support holds. On the upside, above 1.2819 minor resistance will turn bias back to the upside for 1.2916 high first. Break there will extend the rise from 1.2061 to 38.2% retracement of 1.4689 to 1.2061 at 1.3065. However, sustained break of 1.2598 will argue that rebound from 1.2061 has completed after hitting 55 week EMA (now at 1.2916). Near term outlook will be turned bearish in this case.

In the bigger picture, USD/CAD should have defended 50% retracement of 0.9406 (2011 low) to 1.4689 (2016 high) at 1.2048. And with 1.2048 intact, we'd favor the case that fall from 1.4689 is a correction. Rise from 1.2061 medium term bottom should now target 38.2% retracement of 1.4689 to 1.2061 at 1.3065. Firm break there will target 1.3793 key resistance next (61.8% retracement at 1.3685). We'll now hold on to this bullish view as long as 1.2450 support holds.

EUR/USD - 1.1669

Most recent candlesticks pattern   : N/A

Trend                      : Down

Tenkan-Sen level              : 1.1669

Kijun-Sen level                  : 1.1657

Ichimoku cloud top             : 1.1654

Ichimoku cloud bottom      : 1.1634

Original strategy  :

Buy at 1.1625, Target: 1.1725, Stop: 1.1590

Position : -

Target :  -

Stop : -

New strategy  :

Buy at 1.1625, Target: 1.1725, Stop: 1.1590

Position : -

Target :  -

Stop : -

As the single currency has maintained a firm undertone after surging to 1.1678, suggesting the rise from 1.1554 low is still in progress and may extend further gain to 1.1691-96 (previous resistance and 50% Fibonacci retracement of 1.1837-1.1554) but reckon upside would be limited to 1.1725-29 (previous support now resistance and 61.8% Fibonacci retracement), bring retreat later.

In view of this, would not chase this rise here and we are looking to buy euro on pullback as 1.1620-25 should limit downside and bring another rebound later. Below 1.1600 would bring weakness to 1.1675-80, however, downside should be limited and bring another rebound. Break of 1.1575-80 would defer and risk a retest of last week’s low at 1.1554 first.

Currency pair GBP/USD

The GBP/USD broke above and below the local triangle pattern (dotted lines) but the major support (blue) and resistance (red) trend lines are still intact. A breakout is needed before a larger directional move can be expected.

The GBP/USD is probably expanding the correction via an ABC zigzag correction (green) if price stays in between support and resistance trend lines. A break below the 100% Fibonacci level of wave B vs A invalidates the bullish ABC wave.

Currency pair EUR/USD

EUR/USD is expanding the wave 4 (blue) bullish retracement within the larger downtrend (red line).The Fibonacci levels of wave 4 (blue) could therefore act as a resistance zone. A break below the support trend line (blue) could indicate a potential bearish breakout within wave 5 (blue) of wave C (purple).

The EUR/USD could be building an ABC (orange) zigzag correction within wave 4 (blue) after itbroke above the local resistance trend line (dotted orange).

Currency pair USD/JPY

The USD/JPYis still in its choppy bearish trend channel. A bullish breakout could test the resistance levels of wave X (pink). A bearish breakout could test the Fibonacci levels of wave 2 or wave B (light purple).

The USD/JPY is testingthe resistance of the bearish channel (orange line) and previous tops (red line).

CADJPY Elliott Wave view suggests that the decline to 87.78 ended Minor wave X. Pair starts a new rally from there as a double three Elliott Wave structure where Minute wave ((w)) ended at 89.8. Minute wave ((x)) pullback is currently in progress to correct cycle from 10/31 low in 3, 7, or 11 swing before the rally resumes, provided that pivot at 10/31 low (87.78) stays intact. Subdivision of Minute wave ((x)) is unfolding also as a double three Elliott Wave structure where Minutte wave (w) ended at 88.96 and Minutte wave (x) ended at 89.64. Near term, while bounces stay below 89.8, expect pair to extend lower in Minutte wave (y) of ((x)) towards 88.56 – 88.76 area before pair resumes the rally higher or at least bounce in 3 waves. We don’t like selling the pair.

CADJPY 1 Hour Elliott Wave Analysis

Headlines/Economic Data

Japan

(JP) Bank of Japan (BOJ) Gov Kuroda: we continue to pursue powerful monetary easing to make sure that positive inflation developments are not cut short - comments in Zurich

(JP) Japan MoF sells ¥1.8T v ¥2.2T indicated in 0.10% 5-yr bonds; avg yield -0.107%; bid-to-cover 4.19x

Korea

(KR) North Korea will continue its pursuit of nuclear missiles in the wake of the United States' rare deployment of three aircraft carrier groups near the Korean Peninsula - letter from North Korea's top envoy to the UN Ja Song-nam to UN Secretary-General Antonio Guterres

China/Hong Kong

(CN) CHINA OCT INDUSTRIAL PRODUCTION Y/Y: 6.2% V 6.7%E ; YTD Y/Y: 6.7% V 6.3%E

(CN) CHINA OCT RETAIL SALES Y/Y: 10.0% V 10.5%E; YTD Y/Y: 10.3% V 10.4%E

(CN) China Oct Foreign Direct Investment (FDI): CNY60.1B v CNY70.3B prior; YTD y/y: +1.9% v 1.6% prior

(CN) CHINA OCT YTD URBAN FIXED ASSETS Y/Y: 7.3% V 7.3%E

(CN) China PBoC Open Market Operations (OMO): CNY280B v CNY180B injected in 7, 14 and 63-day reverse repos prior; Net injection CNY140B v CNY150B prior

USD/CNY (CN) PBOC sets yuan reference rate at 6.6299 v 6.6347 prior

(CN) China National Stats Bureau (NBS): Jobless rate below 5%; CPI is at ideal level

(CN) Former SAFE Official (fx regulator) Guan Tao: China reforms of its mechanism for determining the exchange rate should include FX market development and loosening of controls

(CN) China State Researcher Zhu sees 2018 GDP growth of 6.5% and CPI at 3% - China Financial News (yesterday)

(CN) China Premier Li Keqiang said to tell Japan PM Abe that both countries should boost cooperation on trade

(HK) According to Credit Suisse analysts Macau Nov 1-12th gaming Rev +20-22% y/y v 15%e

(CN) China 10-year bond yield trades at 4%, first time since 2014

(HK) Macau Gaming Regulator's Chan: To continue existing regulations on junkets, have banned over 200 people entering casino this year

Australia/New Zealand

(AU) Australia Oct NAB Business Conditions: 21 v 14 prior (record high); Confidence: 8 v 8 prior

(AU) Australia sells A$150M v A$150M indicated in Aug 2035 indexed bonds; avg yield 0.9732%; bid-to-cover 2.93x

(NZ) Reserve Bank of New Zealand (RBNZ) confirms dashboard approach to quarterly bank disclosures

US

(US) US Treasury Sec Mnuchin: Looks forward to successful House tax vote this week; Imposes 183.4-194.9% duties on China plywood imports

Levels as of 23:00ET

Nikkei +0.5%, Hang Seng -0.0%; Shanghai Composite -0.5%; ASX200 -0.9%, Kospi -0.2%

Equity Futures: S&P500 -0.1%; Nasdaq100 -0.1%, Dax -0.1%; FTSE100 -0.2%

EUR 1.1676-1.1662; JPY 113.73-113.57; AUD 0.7638-0.7609;NZD 0.6903-0.6860

Dec Gold -0.2% at $1,276/oz; Dec Crude Oil -0.2% at $56.63/brl; Dec Copper -0.3% at $3.12/lb

Narrative

Asian equity markets opened today's trading session mixed. Australia's equity market has declined by over 0.9%. The S&P ASX 200 Materials and Energy indices have each lost over 1% on the session. Shares of Woodside Petroleum have declined by over 3%. On Monday, Shell announced that it would sell down shares in the Australian energy producer.

Besides this, the ASX 200 Financials index has lost over 0.6%. In Japan, large bank Mizuho Financial has declined on the session, as the company reported better than expected Q2 results and affirmed its FY forecast. Later today, mega banks Mitsubishi UFJ and Sumitomo Mitsui are due to issue their financial reports. In Hong Kong, the Hang Seng Financials index has traded little changed. China Oct M2 money supply and new yuan loans data, which were released on Monday, missed market expectations.

Property shares in Hong Kong have traded generally lower. Sunac China has declined by more than 5%. In Oct, China's Home Sales Value declined by over 3%, which was the largest y/y drop in over 2 years.

The Hang Seng Information Technology index has risen by over 0.6%, amid gains in shares of Tencent. In South Korea, shares of chipmaker Hynix have risen by over 0.5%. Shares of Micron rose by over 1.5% during Monday's NY session. Toshiba has gained over 7% amid speculation that the firm could reach a settlement agreement with Western Digital.

Japan's Fast Retailing has traded marginally higher. The S&P 500 Consumer Discretionary sector gained 0.3% on Monday's trading session.

Shares of Samsonite have traded higher by over 3% in Hong Kong following the company's Q3 results and the overall Hang Seng Consumer Goods index has gained over 0.7%. In Australia, the ASX Consumer Discretionary index has declined by over 0.8%. Shares of JB Hi-Fi (home products retailer) have declined by over 3%, while HT&E (media company) and Harvey Norman (consumer retailer) have lost over 2%.

At the same time, the interest rate sensitive sectors are declining in Australia. The ASX 200 Utilities index has declined by over 1.4%, while the REIT index is off by more than 0.9%. Australia's 3-year bond yield has risen by more than 4bps on the session. In Oct, Australia's NAB business conditions index rose to a record high.

Following the data the Aussie moved slightly higher, but has since pared some of its gains amid the release of China's Oct data points.

China Retail Sales in Oct rose at the slowest pace since Jan, while Industrial Production growth slowed to 6.2% y/y (from 6.6% prior). Monthly, power output growth slowed to 2.5% vs 5.3% prior. Despite the data, China's 10-year bond yield has risen to 4%, for the first time since 2014.

US Treasury Futures are currently little changed. However, USD/JPY volatility has hit 3-week highs. Looking ahead, the US House of Representatives may vote on its tax reform bill by as early as this Thursday, according to press reports.

In the corporate bond market, Resolute Energy withdrew its proposed high-yield offering of $550M in 2025 notes citing broader market conditions. Recall, at the end of last week NRG Energy withdrew a $870M 2028 high-yield offering, citing a similar reason.

In emerging market sovereigns Venezuela, which held a meeting with bondholders on Monday, had its credit rating cut to ‘SD' from ‘CC' at S&P on the expectation that another debt payment could be missed.

Japanese companies due to report earnings later today: include Ai Holdings, Amada, DIC Corp, Daido Metal, Dentsu, Ferrotec, Fukui Computer Holdings, Heiwa Corp, Idemitsu Kosan, Hikari Tsushin, Japan Post Bank, Japan Post Holdings, Japan Post Insurance, Kajima, Kansai Urbank Banking, Kyushu Financial Group, Mitsubishi UFJ, Nippon Paint Holdings, Okumura Corp, Open House, Otsuka Holdings, Recruit Holdings, Seiko Holdings, Showa Denko, Sumitomo Mitsui Financial, Sumitomo Realty & Development, Takamatsu Construction Group, The Dai-ichi Insurance, Yokohama Rubber, Toei, Tokyo Seimitsu; Tsubaki Nakashima and Unipres Corp.

Japan's Q3 preliminary GDP data is due to be released on tomorrow's session, along with Australia's Q3 wage price index.

Equities notable movers

Australia/New Zealand

TWR.AU Reports FY17 (A$) underlying net 18M v 201M y/y; Net earned premium 256.9M v 253.8M y/y; To launch NZ$70M rights issue priced at NZ$0.42/shr; -10.5%

SDA.AU Awarded fully managed communications contract for Nabors in South America; no terms disclosed; +7%

Japan

9984.JP No final agreement on investment into Uber, may not make investment if terms are not satisfactory; -0.4%

382.JP Weakness due to being removed from MSCI Japan Index; -12%

China/Hong Kong

1316.HK Added to MSCI China Index; +7%

US

BWLD Reportedly receives >$150/shr takeover offer from Roark Capital – press; +27.9% afterhours