Markets Anxiously Await Todays NFP
Asian equities saw a relatively indecisive session overnight as participants await today’s key nonfarm payrolls report
• USD failed to rebound from yesterday’s ISM-triggered weakness, with GBP/USD in proximity for another attempt to reclaim 1.3300
• Looking ahead, highlights include US Nonfarm payrolls, Trade Balance, Factory Orders, as well as comments from Fed's Lacker
Asia traded indecisively following the flat lead from Wall St. as participants await September’s NFP jobs data. Choppy trade was observed in Nikkei 225 (-0.4%) as USD/JPY attempted to nurse its declines from the prior session, while ASX 200 (-0.6%) underperformed amid continued weakness in energy prices. Chinese markets traded tentatively with the Hang Seng (+0.2%) and Shanghai Comp (0.0%) conforming to the indecisive tone, while the Peoples Bank Of China conducted a net weekly drain of CNY 173.5bln.
Bank Of Japan’s Sakurai stated that there is plenty of scope to purchase additional ETFs, deepen negative rates and increase JGB purchases, adding that the central bank’s decision on whether to ease in September and beyond is largely dependent on how the Bank Of Japan analyses NIRP effects.
The People’s Bank Of China set CNY mid-point at 6.6727 (Prev. 6.6784) Peoples Bank Of China injected CNY 30bln via 7-day reverse repos and CNY 10bln in 14-day reverse repos, for a net weekly drain of CNY 173.5bln vs. last week's injection of CNY 310bln.
Europe And The United Kingdom
News flow from the region remains light overnight
The FX markets were uneventful amid a lack of tier-1 data or speakers and as participants remained side-lined ahead of the all-important US jobs report. USD failed to rebound from yesterday’s ISM-triggered weakness, with GBP/USD in proximity for another attempt to reclaim the 1.3300 handle, while EUR/USD continued to test 1.1200 to the upside.
WTI crude futures saw mild reprieve from yesterday’s slump as prices found support at the USD 43/bbl level. Gold (0.0%) held to yesterday’s gains where the precious metal was underpinned by USD weakness with focus now all on NFPs, while copper prices continued on the range-bound trade seen this week.
Russia Energy Minister Novak said an oil output freeze is unlikely to be discussed at OPEC talks in Algeria and that they will talk about the overall market, while he added that balancing in the oil market is taking more time than expected.
SPDR Gold Trust holdings declined 0.57% tons to 937.9 tons.
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