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Japan’s Industrial Production Declined At Its Fastest Pace In One Year In January
For the 24 hours to 23:00 GMT, the USD rose 0.35% against the JPY and closed at 110.93.
On the macro front, data showed that Japan's retail trade climbed 0.6% on a yearly basis in January, compared to a rise of 1.3% in the previous month. Market participants had expected the retail trade to register a gain of 1.4%. Meanwhile the nation's preliminary industrial production declined 3.7% on a monthly basis in January, falling at its fastest pace in a year and more than market anticipations for a fall of 2.5%. In the prior month, industrial production had recorded a drop of 0.1%. Additionally, Japan's large retailers' sales dropped 3.3% in January, surpassing market consensus for a fall of 1.8%. In the preceding month, large retailers' sales had eased 1.0%.
In the Asian session, at GMT0400, the pair is trading at 110.89, with the USD trading a tad lower against the JPY from yesterday's close.
Overnight data showed that housing starts rose 1.1% on a yearly basis in January, falling short of market expectations for a surge of 10.3%. In the previous month, housing starts had recorded a gain of 2.1%. Moreover, the nation's construction orders advanced 19.8% on an annual basis in January, following a drop of 3.7% in the preceding month.
The pair is expected to find support at 110.48, and a fall through could take it to the next support level of 110.06. The pair is expected to find its first resistance at 111.19, and a rise through could take it to the next resistance level of 111.48.
Going forward, investors would closely monitor Japan's jobless rate for January and the Nikkei manufacturing PMI for February, slated to release overnight.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
Swiss Franc Reverses Its Losses In The Morning Session
For the 24 hours to 23:00 GMT, the USD rose 0.11% against the CHF and closed at 1.0009.
In the Asian session, at GMT0400, the pair is trading at 0.9990, with the USD trading 0.19% lower against the CHF from yesterday’s close.
The pair is expected to find support at 0.9962, and a fall through could take it to the next support level of 0.9935. The pair is expected to find its first resistance at 1.0017, and a rise through could take it to the next resistance level of 1.0045.
Trading trend in the Swiss Franc today, is expected to be determined by Switzerland’s KOF leading indicator for February, slated to release in a few hours.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
Canada’s Consumer Price Index Declined In January
For the 24 hours to 23:00 GMT, the USD declined 0.11% against the CAD and closed at 1.3150,
Data indicated that Canada's seasonally adjusted consumer price inflation slowed to 1.4% on a yearly basis in January, on the back of lower gasoline prices and compared to a level of 2.0% in the previous month.
In the Asian session, at GMT0400, the pair is trading at 1.3153, with the USD trading marginally higher against the CAD from yesterday's close.
The pair is expected to find support at 1.3122, and a fall through could take it to the next support level of 1.3091. The pair is expected to find its first resistance at 1.318, and a rise through could take it to the next resistance level of 1.3207.
Moving ahead, traders would keep an eye on Canada's CFIB business barometer for February, set to release later in the day.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
Aussie Reverses Its Losses In The Asian Session
For the 24 hours to 23:00 GMT, the AUD declined 0.71% against the USD and closed at 0.7143.
LME Copper prices rose 1.0% or $62.0/MT to $6533.0/MT. Aluminium prices rose 1.5% or $28.5/MT to $1898.5/MT.
In the Asian session, at GMT0400, the pair is trading at 0.7147, with the AUD trading 0.06% higher against the USD from yesterday’s close.
In economic news, Australia’s private sector credit rose 0.2% on a monthly basis in January, less than market expectations for a rise of 0.3%. In the previous month, private sector credit had registered a similar rise.
Elsewhere in China, Australia’s largest trading partner, the NBS manufacturing PMI fell to a level of 49.2 in February, more than market consensus for a fall to a level of 49.4. The PMI had recorded a level of 49.5 in the previous month.
The pair is expected to find support at 0.7118, and a fall through could take it to the next support level of 0.7090. The pair is expected to find its first resistance at 0.7184, and a rise through could take it to the next resistance level of 0.7222.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average
Gold: Yellow Metal Extends Its Losses In The Morning Session
For the 24 hours to 23:00 GMT, Gold declined 0.71% against the USD and closed at USD1321.70 per ounce.
In the Asian session, at GMT0400, the pair is trading at 1320.30, with gold trading 0.11% lower against the USD from yesterday’s close.
The pair is expected to find support at 1315.33, and a fall through could take it to the next support level of 1310.37. The pair is expected to find its first resistance at 1328.33, and a rise through could take it to the next resistance level of 1336.37.
The yellow metal is trading below its 20 Hr and 50 Hr moving averages.
Silver: White Metal Trading On A Weaker Footing This Morning
For the 24 hours to 23:00 GMT, Silver declined 1.16% against the USD and closed at USD15.79 per ounce, tracking losses in gold prices.
In the Asian session, at GMT0400, the pair is trading at 15.78, with silver trading 0.06% lower against the USD from yesterday’s close.
The pair is expected to find support at 15.67, and a fall through could take it to the next support level of 15.56. The pair is expected to find its first resistance at 15.95, and a rise through could take it to the next resistance level of 16.12.
The white metal is trading below its 20 Hr and 50 Hr moving averages.
Crude Oil: Oil Trading Lower In The Asian Session
For the 24 hours to 23:00 GMT, Crude Oil rose 1.82% against the USD and closed at USD56.96 per barrel, after Saudi Arabia reiterated its decision of reducing output. Additionally, the Energy Information Administration (EIA) report indicated that US crude oil stockpiles declined by 8.6 million barrels to 445.87 million in the week ended 22 February 2019.
In the Asian session, at GMT0400, the pair is trading at 56.92, with oil trading 0.07% lower against the USD from yesterday’s close.
The pair is expected to find support at 55.96, and a fall through could take it to the next support level of 55.01. The pair is expected to find its first resistance at 57.63, and a rise through could take it to the next resistance level of 58.35.
Crude oil is trading above its 20 Hr and 50 Hr moving averages.
BoJ Suzuki: Absolutely no need to ramp up monetary easing
BoJ board member Hitoshi Suzuki said today that there is "absolutely no need" to ramp up monetary easing. He added, "if the momentum for hitting the price target is lost, the BOJ will consider taking appropriate action. But many board members, including myself, believe the momentum is sustained."
Nevertheless, Suzuki noted it's the current massive stimulus program is still needed. He said "there's a risk inflation won't accelerate much for a prolonged period, as companies remain cautious of raising wages and households are sensitive to price rises.
Yen mildly higher as Trump-Kim summit cut short, no agreement reached
Yen is given a mild lift on news that Trump-Kim summit in Vietnam is cut short, for unknown reason. Trump will pull ahead his scheduled media conference to 0700 GMT. And, for now, it's unknown whether the scheduled "join agreement signing ceremony" would still be held.
White House spokeswoman Sarah Sanders confirmed that “the two leaders discussed various ways to advance denuclearization and economic driven concepts,” but “no agreement was reached at this time, but their respective teams look forward to meeting in the future.”
Earlier, both sides indicated progresses in denuclearization of the Korean Peninsula. Kim told reports that "If I'm not willing to do that, I won't be here right now". Trump responded by saying "that might be the best answer you've ever heard."
GBP/JPY Daily Outlook
Daily Pivots: (S1) 146.58; (P) 147.31; (R1) 148.46; More...
Intraday bias in GBP/JPY remains neutral at this point. Current rise from 131.51 should target 149.48 key resistance next. On the downside, break of 146.16 minor support will turn intraday bias neutral and bring consolidation first, before staging another rally.
In the bigger picture, the strong rebound from 131.51 suggests that medium term fall from 156.59 (2018 high) has completed already. The corrective structure of such decline is turn argues that it's the second leg of the corrective pattern from 122.36 (2016 low). And this pattern is starting the third leg. On the upside, decisive break of 149.48 will pave the way to 156.59 resistance and above.
