See
the points above for what to watch in the nonfarm payroll and ISM
services PMI data due from the US Friday morning, specifically on the
range of estimates and why these are important to be aware of.
Asia
FX traded in small ranges with a little net strength for the the US
dollar overall. EUR, yen, GBP, AUD, NZD, CAD and gold are all a
little lower against the big dollar.
Us
politics media reported on the Biden administration overseeing the
drafting of plans to hit back at Iran-backed Houthi militants who
have been attacking commercial shipping in the Red Sea. The prospect
of an intensifying war in the Middle East supported the dollar and
oil.
Bitcoin
came under pressure as speculation on the imminent approval of spot
ETFs gathered pace. The rumours have been doing the rounds for months
now and crypto markets are looking like a ‘sell the fact’
response is on the cards.
Locally,
China’s
government bonds
rallied further, with the yield on the 10-year
benchmark falling
further towards 2.5%, to its lowest in more than three years. The
increased demand for government bonds alongside
lower
market interest rates is
pointing towards pressure for further policy accommodation from the
People’s Bank of China. The offshore yuan. CNH, touched above 7.1800 during the session, its weakest since December 13.
In
further regional news, North Korea fired more than 200 coastal
artillery shells towards the South Korean border island Yeonpyeong,
prompting South Korea’s military to issue an evacuation order for
civilians on the island. South Korea confirmed, though, that the shells
fell short of the island, landing north of the hotly disputed
Northern Limit Line (NLL), the maritime border line with North Korea. South Korea says it will respond with live fire drills.
South Korea’s KOSPI index: