Australian data lift risk sentiment

<p>The Asian session has seen a slight reversal – to the demise of risk sentiment – which was led by a stabilisation in the oil […]</p>

The Asian session has seen a slight reversal – to the demise of risk sentiment – which was led by a stabilisation in the oil price, but helped by a robust Australian employment report and a surprise rate cut by the Reserve Bank of India, as the Nikkei closes up 1.86%.

I note that early European trading isn’t following on with the correlation as WTI and Brent trade 1.5% and 2% lower respectively, despite European bourses trading generally trading 1% higher.

The AUD was the stand-out performer in Asia as employment rose 37.4k on the month against expectations of a 5k rise, while the unemployment rate dropped one tenth to 6.1%, with the participation rate also showing an encouraging increase to 65.8%.

The European court of Justice has ticked all the boxes for the ECB to launch QE on the 22nd, while appeasing the market with no mention of placing any caps on the size of the programme. It was a mixed picture in the US yesterday as retail sales data disappointed to the downside and the Beige book revealed that economic activity in the US expanded in November and December.

The FX market will again be driven by the commodities world as we get a preview into tomorrow’s US CPI data, with today’s release of PPI and a sentiment guide from the Empire state of manufacturers.

 

EUR/USD

Supports 1.1710-1.1640-1.1550   | Resistance  1.1850-1.1910-1.1980

 

USD/JPY

Supports  116.05-115.35-114.30  Resistance  117.90-118.80-119.30

 



GBP/USD

Supports 1.5075-1.5000-1.4950   Resistance 1.5250-1.5280-1.5310

 

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