The US holiday thinned overnight trading and left US equity futures and European equities little changed. US treasury bond market was closed, but futures did trade, the 10yr little changed around 1.08%. Commodities: Brent crude oil futures fell 0.7% to $54.75, copper rose 0.3%, iron ore rose 0.4% to $172.60, and gold rose 0.5%.
Overnight Currency Ranges
AUD/USD: 0.7659 – 0.7695
EUR/USD: 1.2054– 1.2086
GBP/USD: 1.3522 – 1.3587
USD/JPY: 103.62 – 103.84
USD/CAD: 1.2756 – 1.2800
NZD/USD: 0.7097 – 0.7127
AUD/JPY: 79.48 – 79.41
AUD/NZD: 1.0790 –1.0807
Another quiet day is expected during Asian trading session as attentions turns to the US as the week progresses. The confirmation hearing for President-elect Biden’s Treasury secretary, Janet Yellen, is set for this evening, one day prior to Inauguration Day. This could see her comment on the outlook for fiscal policy and the US dollar.
The AUD/USD traded in a 0.7659/0.7710 to start the week with support still expected ahead of 0.7640. Offering interest has grown and likely rests ahead 0.7750 and again at 0.7820.
Event Risk Data Today
Australia - ABS Weekly Payroll Jobs and Wages will be released for the week-ended January 2.
New Zealand - The Q4 Quarterly Survey of Business Opinion will provide an early indicator of quarterly growth. Spending has risen above pre-COVID levels ahead of the December update of retail card spending.
Germany - December CPI y/y
Germany - January ZEW Survey Expectations
Europe - January ZEW Survey Expectations
Canada - November Manufacturing Sales m/m