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For the 24 hours to 23:00 GMT, the USD rose 0.47% against the JPY and closed at 107.04.

In the Asian session, at GMT0400, the pair is trading at 106.96, with the USD trading 0.07% lower against the JPY from yesterday’s close.

The pair is expected to find support at 106.53, and a fall through could take it to the next support level of 106.09. The pair is expected to find its first resistance at 107.25, and a rise through could take it to the next resistance level of 107.53.

Looking forward, traders would keep a close watch on Japan’s flash industrial production, retail trade and large retailers’ sales, all for January, slated to release overnight.

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

For the 24 hours to 23:00 GMT, the USD rose 0.45% against the CHF and closed at 0.9384.

On the data front, Switzerland’s total sight deposits inched up to a level of CHF576.0 billion in the week ended 23 February, compared to a level of CHF575.1 billion reported in the previous week.

In the Asian session, at GMT0400, the pair is trading at 0.9376, with the USD trading 0.09% lower against the CHF from yesterday’s close.

The pair is expected to find support at 0.9338, and a fall through could take it to the next support level of 0.9299. The pair is expected to find its first resistance at 0.9403, and a rise through could take it to the next resistance level of 0.9429.

Amid no macroeconomic releases in Switzerland today, investors would focus on global macroeconomic events for further direction.

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 0.4% against the CAD and closed at 1.2684.

In the Asian session, at GMT0400, the pair is trading at 1.2686, with the USD trading slightly higher against the CAD from yesterday’s close.

The pair is expected to find support at 1.2631, and a fall through could take it to the next support level of 1.2575. The pair is expected to find its first resistance at 1.2727, and a rise through could take it to the next resistance level of 1.2767.

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

Short Term Elliott Wave view in Gold suggests the decline to $1306.8 ended Intermediate wave (X). However, the yellow metal needs to break above Intermediate wave (W) at $1366.06 to rule out the possibility of a double correction in wave (X). Up from $1306.8, the rally is proposed to be unfolding as a double three Elliott Wave structure where Minute wave (w))) ended at $1357.12 and Minute wave ((x)) is proposed complete at $1320.60. Near term, while pullbacks stay above there, and more importantly above $1306.8, expect Gold to extend higher. We don’t like selling the yellow metal. If Gold breaks below $1306.8, then the yellow metal is doing a double correction in Intermediate wave (X) and opens extension lower towards $1228.27 – $1302.28 where buyers should appear for at least a 3 waves bounce.

Gold 1 Hour Elliott Wave Chart

Headlines/Economic Data

(KR) BANK OF KOREA (BOK) LEAVES 7-DAY REPO RATEUNCHANGED AT 1.50%; AS EXPECTED

(KR) South Korea Jan Department Store Sales Y/Y: -9.6% v 3.2% prior; DiscountStore Sales Y/Y: -20.2% v 2.2% prior

(KR) South Korea Prosecutor said to seek 30-year term and KRW118.5B fine for former President Park - South Korea Press

China/Hong Kong

Hang Seng opened +0.9%, Shanghai Composite +0.1%

Hang Seng Materials Index -2%, Property/Construction -1%, Financials -0.4%; Industrial Goods +0.7%

AIA Group, 1299.HK Reports FY17 Op $4.65B v$3.98B y/y; Annualized new premiums $6.09B v $5.12B y/y

(CN) According to China Securities Journal the PBOC is likely to raise its reverse repo rates in response to a Fed rate hike expected in March; increases will probably be small ~5bps

(CN) China Securities Regulator (CSRC) is review more companies forrestructuring - China Securities News

(CN) China to face tight balance in liquidity in March - China SecuritiesJournal

(CN) China PBoC Open Market Operation (OMO): Skips v CNY150B prior injection in7-day, 28-day and 63-day reverse repos prior

USD/CNY(CN) PBOC SETS YUAN REFERENCE RATE AT 6.3146 V 6.3378 PRIOR

Looking Ahead: China Feb Official Manufacturing and Non-Manufacturing PMIs due to be released on Wed

Australia/New Zealand

ASX 200 opened +0.1%; closed +0.2%

ASX 200 Financials Index +0.4%; Utilities -0.5%, Telecom -0.9%

(NZ) NEW ZEALAND JAN TRADEBALANCE (NZD): -566M V 0ME; YTD -3.22B V -2.7BE

(NZ)New Zealand Jan milk production -7.4% y/y

Caltex,[+6%], CTX.AU Reports FY17 (A$) RCOP Net621M v 619Me; RCOP EBIT 935M v 945Me; Rev 21.4B v 19Be

(AU) Reserve Bank of Australia (RBA) Paper: Data suggests medium to long-termexpectations for real interest rates have declined in recent years

(NZ) New Zealand sells NZ$100M in 1-yr bills at 1.84%

(AU) Australia sells A$150M v A$150M indicated in Aug 21, 2040 1.25% indexedbonds, avg yield 1.0266%, bid to cover 2.37x

North America

US equity markets ended higher: Dow +1.1%, S&P500 +0.7%, Nasdaq +0.7%, Russell 2000+0.3%

S&P500 Technology +1.6%, Financials +1.5%

Apple[AAPL]: Reportedly plans to announce 3 new iPhones this fall: its largest ever high-end phone, an update of the iPhone X, and a lower priced model – press

Qualcomm [QCOM]: US CFIUS said to have started review of Broacom's bid; Senator Cornyn (R) said to favor the review before Qualcomm's proxy vote on March 6 - financial press

MicrosemiCorp [MSCC]: M Microchip Technology said to be near agreement to acquire the company in deal worth in the 'mid$60s/share' - US financial press

ProShare to reduce target exposure to certain VIX ETFs

(US) Fed's Quarles (hawk, FOMC voter): expects further gradual rate hikes will be appropriate

(US) Treasury Sec Mnuchin: Reiterates long term a strong dollar is good for the US and we do not set policy to impact the dollar

IEA chief Birol: Do not expect decline in US oil production in the next 4-5 years

MSCC Microchip Technology said to be near agreement to acquire the company in deal worth in the 'mid $60s/share' - US financial press

Looking Ahead: US Jan Durable Goods and first day of Fed Chair Powell’s Testimony expected later today, along with the Weekly US API Crude Oil Inventories

Europe

(EU) Spain Fin Min de Guindos (potential ECB VP): forward guidance is highly effective in lowering rates

(GR) Greece Economy Min Papadimitriou said to resign - local media

(UK) BOE's Cunliffe: Does not discuss monetary policy in prepared remarks

Standard Chartered [STAN.UK] Reports FY17 adj Pretax $3.0B v $3.1Be; Op $14.3B v $13.8B y/y; Resumes dividend of $0.11

Luxottica [LUX.IT]: ReportsFY17 €2.45 v €1.96 y/y, net €970M v €950Me, rev €9.2B v €9.1B y/y; Guides initial FY18 Rev +2-4%, adj Op 0.8-1.0x sales, Adj Net 1-2x sales, net debt/EBITDA 0.3-0.4x

Philips Lighting [LIGHT.NL]: Share offering said to price at €32.10/share

Looking Ahead: Feb Prelim CPI data due to be released for Germany and Spain

Levels as of 01:00ET

Nikkei225 +1.1%, Hang Seng -0.2%; Shanghai Composite -1.3%; ASX200 +0.2%, Kospi +0.2%

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

EUR 1.2309-1.2342; JPY107.10.-106.78; AUD 0.7868-0.7840;NZD 0.7305-0.7274

Apr Gold +0.2% at $1,334/oz; Apr Crude Oil -0.1%at $63.83/brl; May Copper +0.1% at $3.22/lb

Daily Pivots: (S1) 148.89; (P) 149.45; (R1) 149.90; More...

Intraday bias in GBP/JPY remains neutral for consolidation above 147.95. With 151.90 resistance intact, deeper decline is expected. Below 147.95 will resume the fall from 156.59 and target 146.96 support next. Considering bearish divergence condition in daily MACD, firm break of 146.96 will be another sign of medium term trend reversal. On the upside, break of 151.19 will indicate short term bottoming and turn bias back to the upside for rebound.

In the bigger picture, the case for medium term reversal continues to build up on loss of medium term momentum as seen in weekly MACD. Also, firm break of 146.96 will indicate rejection by 55 month EMA (now at 154.60) and add to that case of reversal. In that case, deeper fall would be seen to 38.2% retracement of 122.36 to 156.59 at 143.51 and then 61.8% retracement at 135.43. Meanwhile, break of 156.59 will extend the rise from 122.36 to 61.8% retracement of 195.86 to 122.36 at 167.78.

Daily Pivots: (S1) 131.29; (P) 131.52; (R1) 131.96; More....

EUR/JPY is losing some downside momentum as seen in 4 hour MACD. But with 133.05 resistance intact, deeper fall is expected in the cross. Current development indicate medium term topping at 137.49, on bearish divergence condition in daily MACD. Deeper fall should be seen to 126.61 medium term fibonacci level next. On the upside, though, break of 133.05 will indicate short term bottoming and bring stronger rebound.

In the bigger picture, current development argues that rise from 109.03 has completed at 137.49, on bearish divergence condition in weekly MACD. Deeper fall should be seen to 38.2% retracement of 109.03 to 137.49 at 126.61 first. On the upside, break of 137.49 is needed to confirm medium term rise resumption. Otherwise, risk will now stay on the downside even in case of strong rebound.

Daily Pivots: (S1) 0.8785; (P) 0.8804; (R1) 0.8836; More...

EUR/GBP's range trading continues inside 0.8686/8928. Intraday bias remains neutral. Also, outlook stays mildly bearish with 0.8928 resistance intact. On the downside, firm break of 0.8686 will resume whole decline from 0.9305. As 61.8% retracement of 0.8312 to 0.9305 should then be taken out too, deeper decline would be seen to retest 0.8303/8312 support zone. Nonetheless, on the upside, break of 0.8928 will indicate near term reversal and turn outlook bullish for 0.9304 resistance.

In the bigger picture, there are various ways to interpret price actions from 0.9304 high. But after all, firm break of 0.9304/5 is needed to confirm up trend resumption. Otherwise, range trading will continue with risk of deeper fall. And in that case, EUR/GBP could have a retest on 0.8303. But we'd expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside.

Daily Pivots: (S1) 1.5627; (P) 1.5672; (R1) 1.5725; More....

Intraday bias in EUR/AUD stays neutral as consolidation from 1.5816 is in progress. Again, near term outlook will remain cautiously bullish with 1.5606 support holds. On the upside, break of 1.5816 should now confirm resumption of medium term rise from 1.3264. In that case, EUR/AUD should target 1.6587 key long term resistance. Meanwhile, firm break of 1.5606 will argue that a short term top is formed. Intraday bias will be turned back to the downside for 55 day EMA (now at 1.5514) and below.

In the bigger picture, medium term rise from 1.3624 is not completed yet. Sustained break of 1.5770 will extend the rise to retest 1.6587 (2015 high). However, considering bearish divergence condition in daily MACD, break of 1.4949 cluster support (38.2% retracement of 1.3624 to 1.5770 at 1.4950) will indicate medium term reversal. And there is prospect of retesting 1.3624 low in that bearish case.

Daily Pivots: (S1) 1.1514; (P) 1.1534; (R1) 1.1573; More...

EUR/CHF's consolidation from 1.1445 is still in progress and intraday bias remains neutral. Also outlook stays mildly bearish with 1.1639 resistance intact and deeper decline is expected. Break of 1.1445 will resume the corrective fall from 1.1832 and target 1.1355 cluster support (38.2% retracement of 1.0629 to 1.1832 at 1.1372.) At this point, we'd expect strong support from there to contain downside and bring rebound.

In the bigger picture, a medium term top should be in place at 1.1832 on bearish divergence condition in daily MACD. But there is no indication of long term reversal yet. As long as 1.1198 resistance turned support holds, we'd still expect another rise through prior SNB imposed floor at 1.2000.