EQUITIES
Asia-Pacific markets mixed on Friday thin trading day. In Australia, the S&P/ASX 200 shed -0.50%, after the country retail sales data released. In Japan, the Nikkei 225 rose 0.16%, following a halting of trade yesterday caused by a hardware glitch, and Singapore’s Straits Times index slipped -0.38% lower.
Markets in China, Hong Kong, Taiwan, South Korea, and India are closed on Friday for holidays.
Overnight, The Dow Jones Industrial Average rose 0.13%. The S&P 500 gained 0.53% and the Nasdaq Composite added 1.42%.
OIL
Crude oil prices continued to fall, adding to a 10% September drop, as Brent crude futures traded to $40.49 a barrel, while U.S. crude at $38.23.
On Thursday, Brent closed at $40.93 per barrel, while WTI futures ended at $38.72 per barrel.
CURRENCIES
The dollar index was quoted at 93.92, close to a one-week low due to doubts about U.S. stimulus talks.
The Australian, New Zealand, Canadian dollars, and Chinese yuan have all gained against the greenback. The NZD made a fresh one-week peak of $0.6637, while the AUD held just below week highs made overnight. The CNY hovered just shy of a 16-month high it made in offshore trade overnight.
GOLD
Spot gold fell to $1,894.10 per ounce, adding to its worst month since November 2016, while stands around $1,899.40 per ounce for gold futures. Previously closed at $1,906.40 and $1,916.30, respectively.
Silver trading at $23.63, platinum trading at $884.00 and palladium trading at $2,223.00.
ECONOMIC OUTLOOK
Stocks in Asia-Pacific mostly declined Friday morning, as data showed Australia’s retail sales falling in August, and U.S. stimulus deal remained out of reach, while investors awaited on fresh U.S. employment data later today.
Australia’s retail sales data for August fell 4%, following a rise of 3.2% in July.
Japan’s unemployment rate rose to 3.0% in August to its highest in over three years and job availability fell to a more than six-year low.
Australian retail sales fell 4% in August from gains of 3.2% and 2.7% in July and June, respectively. Annual growth was still solid with sales up 7.1% compared to August 2019.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 34.205 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.021 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 105.770 and 105.903.
- Support line of 105.337 and 105.203.
Commentary/ Reason:
- The Japanese yen last traded at 105.65 per dollar.
- The current trading range between the 104.65 and 106.05 price levels will likely remain intact for the near-term.
- The Japanese yen as a safe-haven currency that tends to gain during periods of uncertainty, barely moved this week, suggesting a degree of caution remains.
- Also, Thursday's Japanese economic data was dovish for BOJ policy and bearish for the yen after Japan Q3 Tankan large manufacturing business conditions rose +7 to -27.
