Sample Category Title

General Trend:

• Asian equity markets trade generally lower amid lack of US leads due to holiday
• Recent equity declines in Italy banking sector in focus
• Various markets are on holiday including Indonesia, Malaysia, Singapore and Thailand
• Apple said to place OLED in all new iPhone models in 2019 (Taiwanese Press); Shares of Samsung and Japan Display decline, while LG Display gains
• Shanghai Property sub-index drops over 2%; NDRC said to have held meeting with some property developers
• Alibaba Health to pay over $1.0B to acquire nutritional product assets from Alibaba
• Japanese Yen (JPY) trades generally firmer as equities and US bond yields decline: AUD/JPY declines over 0.8%
• PBoC steps up net injection in today’s OMO amid maturities and press speculation of tighter liquidity conditions during the summer
• PBOC speculated to cut RRR if liquidity conditions tighten in the months ahead
• Hong Kong property firm Country Garden said to halt over $3.0B bond sale
• Indonesia Central Bank to hold additional policy meeting on Wed, May 30th
• Fed’s Bullard reiterates US rate policy may be at neutral level
• (JP) Japan MoF sells ¥500B v ¥500B indicated in 0.90% (prior 0.90%) 40-yr bonds, yield at lowest price 0.865% v 0.885% prior; bid to cover 3.92x v 3.19x prior

Headlines/Economic Data

Japan

• Nikkei 225 opened -0.2%; closed -0.6%
• TOPIX Iron & Steel Index -1.5%, Securities -1.3%, Marine Transportation -1.1%, Electric Appliances -1%
• Megabanks trade generally weaker
• (JP) Japan economic policy guidelines reaffirm raising consumption tax to 10% from 8% Oct 2019 and call for economic stimulus in initial budgets for FY19 and FY20 - Nikkei
• (JP) Japan FSA said to maintain upper limit on leveraged foreign exchange (FX) trades – US financial press
• Nissan Motor, 7201.JP Said to plan up to 20% cut in North America production through the summer - Japanese Press
• (JP) JAPAN APR JOBLESS RATE: 2.5% V 2.5%E; JOB-TO-APPLICANT RATIO: 1.59 V 1.60E
• Tokyo Electron, 8035.JP Medium-term Management Plan: Sees wafer fab equipment market reaching $55-62B by 2021; sees annual dividend of at least ¥150/share, to consider flexible share buy backs

Korea

• Kospi opened -0.1%
• (KR) South Korea May Consumer Confidence: 107.9 v 107.1 prior (1st increase in 5 months)
• (KR) Dispute rising in South Korea over pace and effect that the minimum wage increase will have - Korean press
• (KR) US to hold off on new sanctions on North Korea ahead of summit with US President Trump - financial press
• (KR) South Korea Govt sells KRW1.75T in 30-yr treasury bonds; avg yield 2.71% v 2.75% prior
• (KR) Top aide to North Korea leader Kim has arrived in Singapore ahead of summit with US; another has flow to Washington DC - press
• (KR) US and North Korea said to be far apart of denuclearization terms - Japan press

China/Hong Kong

• Hang Seng opened -0.5%, Shanghai Composite -0.2%
• Hang Seng Telecom index -1.2% (China Unicom down over 2%), Financials -0.9%, Property/Construction -0.7% ; Consumer Goods +0.5%
• (CN) China may face liquidity shortage in June and July, in response PBOC could cut RRR mid-year to increase liquidity - CSJ
• (CN) China PBoC Open Market Operation (OMO): Injects CNY180B in 7-day and 28-day reverse repos v CNY30B prior; Net: injects CNY50B v CNY30B prior
• (CN) China PBoC sets yuan reference rate at 6.4021 v 6.3962 prior (weakest setting since Jan 22nd)
• Alibaba Health,[+6%], 00241.HK To acquire Ali JK Nutritional Products (wholly-owned subsidiary of Alibaba) for HK$10.6B in stock
• (CN) PBOC Gov Yi Gang: Financial sector has big room for additional opening up, orderly pushing ahead with other financial opening reforms - speaking at Financial Street Forum
• (CN) China Banking Insurance Regulator (CBIRC) Official Huang: Reiterates to move forward with opening up of banking and insurance sectors; to keep regular pace of IPOs

Australia/New Zealand

• ASX 200 opened 0.0%, closed +0.1%
• ASX 200 Financials index +0.7%, Resources +0.2% ; Telecom -0.6%, Consumer Discretionary -0.5%, Energy -0.3%
• (AU) Australia Treasury Sec Fraser: Strong employment conditions to pick up wage growth; non-mining investment continues to show strength
• ARV.NZ Reports FY18 (NZ$) Net 58M, +7% y/y; declares special dividend of 0.26/shr (rises to 11-month high)
• (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 117.7 v 121.6 prior (1-month low)
• (AU) Australia Debt Agency (AOFM) See total gross issuance to be lower next year

Americas

• JBSS3.BR Said to have completely stopped slaughtering in Brazil, rationing feed for chickens and pigs (in response to trucker strike)
• AAPL Said to plan to adopt OLED for all new iPhone versions in 2019 - Taiwanese Press
• (US) Fed’s Bullard (dove, non-voter): US po icy is possibly at neutral mean, Fed should be cautious with additional rate increases - comments from Tokyo

Europe

• (IT) Italy's Five Star leader Di Maio calling for demonstration in Rome on June 2nd against arrogance of the institutions - Italian press
• (ES) Spain parliament fixes date for debate and vote of confidence in Spanish PM Mariano Rajoy for May 31st or June 1st - El Pais
• (US) EU is making a final push to avoid punitive US steel and aluminum tariffs that will go into place June 1st; still hopeful Trump administration will grant a full exemption from the measures – press
• (UK) Govt preparations for a "no deal" Brexit in March 2019 have all but stopped, which will make it nearly impossible for PM May to walk out of negotiations with EU in the next 10-months - FT
• (EU) EU said to consider review of MIFID II if Brexit talks break down - financial press
• (UK) Treasury and BOE are at odds over the future of City of London regulation after Brexit – FT
• (UK) EU said to be blocking UK companies from new defense fund - UK press
• (UK) Manufacturing companies in the UK said to plan to call on the government to end its ‘max fac’ option regarding proposals for customs union, believe the option is not realistic and costly – financial press

Levels as of 02:00ET

• Hang Seng -0.8%; Shanghai Composite -0.5%; Kospi -0.6%
• Equity Futures: S&P500 -0.1%; Nasdaq100 +0.1%, Dax -0.3%; FTSE100 -0.2%
• EUR 1.1635-1.1614; JPY 109.46-108.91; AUD 0.7552-0.7515;NZD 0.6949-0.6921
• Jun Gold -0.5% at $1,297/oz; Jul Crude Oil -1.7% at $66.73/brl; Jul Copper +0.2% at $3.08/lb

Daily Pivots: (S1) 1.1578; (P) 1.1653 (R1) 1.1700; More.....

Intraday bias in EUR/USD remains on the downside. Current fall from 1.2555 is in progress and should target 50% retracement of 1.0339 to 1.2555 at 1.1447 next. On the upside, above 1.1639 minor resistance will turn intraday bias neutral again. But after all, near term outlook will remain bearish as long as 1.1995 resistance holds, in case of recovery.

In the bigger picture, current development suggests that EUR/USD was rejected by 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516. And, a medium term top was formed at 1.2555 already. Decline from there should extend further to 61.8% retracement of 1.0339 to 1.2555 at 1.1186 and below. For now, even in case of rebound, we won't consider the fall from 1.2555 as finished as long as 55 day EMA (now at 1.2049) holds.

Daily Pivots: (S1) 1.3290; (P) 1.3315; (R1) 1.3337; More...

Intraday bias in GBP/USD remains on the downside as recent decline from 1.4376 is in progress. Next target will be 50% retracement of 1.1946 to 1.4376 at 1.3161. On the upside, above 1.3377 minor resistance will turn intraday bias neutral and bring consolidation. But break of 1.3568 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery.

In the bigger picture, current development suggests that whole medium term rebound from 1.1936 (2016 low) has completed at 1.4376 already, with trend line broken firmly, on bearish divergence condition in daily MACD, after rejection from 55 month EMA (now at 1.4223). 61.8% retracement of 1.1936 (2016 low) to 1.4376 at 1.2874 is the next target. We'll pay attention to the reaction from there to asses the chance of long term down trend resumption. For now, outlook will stay bearish as long as 55 day EMA (now at 1.3730) holds, even in case of strong rebound.

For the 24 hours to 23:00 GMT, the EUR declined 0.64% against the USD and closed at 1.1628, pressured by prospects of fresh elections in Italy and Spain.

On Friday, data indicated that Germany's Ifo business climate index remained steady at a revised level of 102.2 in May, defying market expectations for a fall to a level of 102.0. Additionally, the nation's Ifo current assessment index unexpectedly climbed to a level of 106.0 in May, from a revised reading of 105.8 in the previous month, while markets had anticipated a fall to a level of 105.5.

On the contrary, the nation's Ifo business expectations index declined to a level of 98.5 in May, in line with market expectations and after recording a reading of 98.7 in the prior month.

The US Dollar gained ground against a basket of major currencies, after the US President, Donald Trump, renewed hopes of a US-North Korea summit.

Separately, data released on Friday showed that preliminary durable goods orders in the US slid more-than-anticipated by 1.7% on a monthly basis in April, amid weaker demand for aircraft. Market participants had envisaged durable goods orders to fall 1.3%, after registering a revised rise of 2.6% in the previous month. Furthermore, the nation's final Reuters/Michigan consumer sentiment index fell to a level of 98.0 in May, compared to a reading of 98.8 in the preceding month. The preliminary print had indicated a steady reading.

In the Asian session, at GMT0300, the pair is trading at 1.1622, with the EUR trading 0.05% lower against the USD from yesterday's close.

The pair is expected to find support at 1.1577, and a fall through could take it to the next support level of 1.1533. The pair is expected to find its first resistance at 1.1697, and a rise through could take it to the next resistance level of 1.1773.

Amid no key macroeconomic releases in the Euro-zone today, traders would focus on the US CB consumer confidence index for May, set to release later in the day.

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

For the 24 hours to 23:00 GMT, the GBP declined 0.05% against the USD and closed at 1.3310.

On Friday, data revealed that the second estimate of UK's gross domestic product (GDP) advanced 0.1% on a quarterly basis in the first quarter of 2018, confirming the preliminary print. In the previous quarter, GDP had registered a rise of 0.4%.

In other economic news, the nation's BBA mortgage approvals surprisingly climbed to a level of 38.04K in April, notching a 3-month high level and compared to market expectations for a fall to a level of 37.40K. In the previous month, BBA mortgage approvals had registered a revised level of 37.61K. On the other hand, flash reading showed that the nation's total business investment eased 0.2% on a quarterly basis in the first three months of 2018, dipping to a nearly 3-year low level, thus suggesting that heightened Brexit uncertainty is taking its toll on the domestic economy. Total business investment had registered a gain of 0.3% in the prior quarter.

In the Asian session, at GMT0300, the pair is trading at 1.3315, with the GBP trading slightly higher against the USD from yesterday's close.

The pair is expected to find support at 1.3294, and a fall through could take it to the next support level of 1.3274. The pair is expected to find its first resistance at 1.3338, and a rise through could take it to the next resistance level of 1.3362.

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

For the 24 hours to 23:00 GMT, the USD marginally rose against the JPY and closed at 109.43.

In the Asian session, at GMT0300, the pair is trading at 109.03, with the USD trading 0.37% lower against the JPY from yesterday's close.

Overnight data indicated that Japan's unemployment rate remained unchanged at 2.5% in April, meeting market anticipations.

The pair is expected to find support at 108.76, and a fall through could take it to the next support level of 108.5. The pair is expected to find its first resistance at 109.45, and a rise through could take it to the next resistance level of 109.88.

Moving ahead, market participants would look forward to a speech by the Bank of Japan's (BoJ) Governor, Haruhiko Kuroda, due overnight. Investors would also eye the release of retail trade and large retailers' sales data, both for April, slated overnight.

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

For the 24 hours to 23:00 GMT, the USD rose 0.15% against the CHF and closed at 0.9934.

In economic news, Switzerland’s total sight deposits nudged up to a level of CHF576.6 billion in the week ended 25 May, from CHF576.4 billion in the previous week.

In the Asian session, at GMT0300, the pair is trading at 0.9930, with the USD trading marginally lower against the CHF from yesterday’s close.

The pair is expected to find support at 0.9908, and a fall through could take it to the next support level of 0.9886. The pair is expected to find its first resistance at 0.9955, and a rise through could take it to the next resistance level of 0.9980.

Ahead in the day, investors would await the release of Switzerland’s trade balance data for April.

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 0.05% against the CAD and closed at 1.2995.

In the Asian session, at GMT0300, the pair is trading at 1.2989, with the USD trading 0.05% lower against the CAD from yesterday’s close.

The pair is expected to find support at 1.2965, and a fall through could take it to the next support level of 1.2940. The pair is expected to find its first resistance at 1.3018, and a rise through could take it to the next resistance level of 1.3046.

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

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 AUD declined 0.29% against the USD and closed at 0.7546.

LME Copper prices rose 0.75% or $51.0/MT to $6886.0/MT. Aluminium prices rose 0.48% or $11.0/MT to $2282.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7527, with the AUD trading 0.25% lower against the USD from yesterday’s close.

The pair is expected to find support at 0.7502, and a fall through could take it to the next support level of 0.7476. The pair is expected to find its first resistance at 0.7567, and a rise through could take it to the next resistance level of 0.7606.

Moving ahead, investors would look forward to Australia’s building approvals data for April, set to release in the early hours of tomorrow.

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

For the 24 hours to 23:00 GMT, Gold declined 0.08% against the USD and closed at USD1302.10 per ounce, as a broad strength in the greenback and improved risk appetite dented demand for the precious yellow metal.

In the Asian session, at GMT0300, the pair is trading at 1303.80, with gold trading 0.13% higher against the USD from yesterday’s close.

The pair is expected to find support at 1300.47, and a fall through could take it to the next support level of 1297.13. The pair is expected to find its first resistance at 1306.57, and a rise through could take it to the next resistance level of 1309.33.

The yellow metal is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.