Daily Market Bulletin – 11 January 2022

Market Developments

Sentiment appeared mixed, as investors digested news around Omicron restrictions, China's property market and upbeat data from Australia.

Australian Retail Sales surged 7.3% m/m in November, compared to 3.9% expected and 4.9% prior. Trade surplus however, retreated to AU$ 9.42bn.

Chinese developer Shimao Group pushed back against Monday's media reports that it was selling all of its properties. [1]

In today's announcement, Shimao said that "it is in discussions with certain potential purchasers and may consider disposing of certain properties if the terms and conditions are appropriate in order to reduce the indebtedness of the Group." It also clarified that "the Company has no outstanding asset-backed securities due and payable" as of the date of the announcement.

Trade the News: View our Economic Calendar

EV startup Rivian Automotive produced 1,015 vehicles in 2021, according to yesterday's filing [2], missing its 2021 target. RIVN.us was down around 7% this week.

Mr Powell's opening remarks were released today [3], ahead of his Senate testimony. Fed Chair was upbeat, commenting that "Today the economy is expanding at its fastest pace in many years, and the labor market is strong." Furthermore, he vowed to "prevent higher inflation from becoming entrenched".

Main Asia-Pacific stock markets were mostly down and European futures appear tepid.

In the FX space, the US Dollar lacks firm direction, while Antipodeans (AUD, NZD) are mixed against it, struggling to hold earlier gains.

Instruments Snapshot

EUR/USD is upbeat but faces headwinds ahead of 1.1350.

GBP/USD trades with positive undertone, retesting 1.3600.

USD/JPY shows indecision below 115.50, deleting earlier progress.

USD/CAD returns to negative territory, testing 1.2650, after yesterday's rebound.

AUD/USD started the day on the front foot helped by AU retail sales, but rejected 0.7200 and erases gains.

NZD/USD also shows indecision, trading above 0.6750.

GER30 is subdued and capped by 15,900.

US30 remains soft following its poor start to the week, but defends 36,000.

USOIL is upbeat around 78.50.

XAU/USD extends its gains into the third straight day, probing 1,810.

Economic Calendar Picks (GMT)

All eyes will be on Fed Chair Powell's appearance in the Senate, for his nomination hearing (15:00).

Other than that, Fed's Ms George and ECB President Ms Lagarde are on tap today, while Oil traders await weekly API Stockpiles.

Overnight, focus will shift to China's Consumer and Factory Inflation (01:30).

See the economic calendar here.

Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 11 Jan 2022 http://www.shimaogroup.hk/Upload/DownloadFile/yGHD7lcGzdg1

2

Retrieved 11 Jan 2022 https://www.sec.gov/Archives/edgar/data/1874178/000119312522005867/d286746dex991.htm

3

Retrieved 26 May 2022 https://www.federalreserve.gov/newsevents/testimony/powell20220111a.htm

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