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Asian equities are mixed this morning ahead of tomorrow’s key US inflation print, with investors hoping that the trend in retreating inflationary pressures persists, however, Friday’s reports of revisions to past CPI data and elevated consumer inflation expectations have investors nervous regarding a potential upside surprise to tomorrow’s number, a hotter number tomorrow would likely spark another rapid repricing in interest rate yields and a markdown for global equities. Geo-politics risk also remains on the radar, with the US shooting down a fourth flying object believed to have potential surveillance capabilities, China has now indicated its intention to carry out a similar termination of an object in its airspace, stating that US surveillance balloons have trespassed into Chinese airspace over 10 times since January 2022. 

Overnight the Japanese Government is believed to confirm to the Diet that Kazuo Ueda is the nominee to become the new Bank of Japan, Governor. Markets reacted on Friday to chatter regarding his nomination, which initially led to a jump in the yen on concerns that it may mean a move to a more restrictive monetary policy. The yen retreated after Ueda commented that he did not plan an immediate change in policy but markets will be alert for further details on his policy views. Japanese GDP for Q4 will also be released overnight and is expected to show a rebound from Q3’s decline.
 

FX Options Expiration New York Cut

• EURUSD 1.09(842mln), 1.10(337mln)
• USDJPY 126.50(700mln), 127.60(426mln)
   

Overnight News of Note

• Asian Equities Tumble And US Futures Slide After Wall Street Slump
• Dollar Hangs Near 5-Week High As Inflation Data Looms; Yen Slips
• As Funding Costs Surge, China Set To Pump Extra Cash Into Money Market
• Japan’s LDP Policy Head Says Monetary Policy Has Room For Reform
• Australian Tsy: RBA Review To Scrutinise Communications On Rates
• ECB’s Visco: ECB Must Avoid Unnecessary Rise In Real Interest Rates
• Chancellor Scholz’s Party Loses Berlin Election For First Time Since 1999
• UK Firms Plan Biggest Pay Rises Since 2012 To Fill Staff Gaps
• Analysts Say Credit Markets Are Poised For A Gut Check After 10% Rally
• Crypto Firm Paxos Faces SEC Lawsuit Over Binance USD Token
• Oil Edges Lower As Slowdown Concerns Vie With Russian Cutback
• OPEC Expects Global Oil Demand To Cross Pre-Pandemic Levels In 2023
• Meta Delays Setting Team Budgets As It Plans Fresh Round Of Job Cuts

(Sourced from Bloomberg, Reuters and other reliable financial news outlets)
 

Technical & Trade Views

SP500 Bias: Intraday Bullish Above Bearish Below 4040

• Primary support is 3990
• Primary objective is 4384
• Below 4040 opens 4000
• 20 Day VWAP bullish, 5 Day VWAP bearish

(Click on image to enlarge)

EURUSD Bias: Intraday Bullish Above Bearish below 1.0810

• Primary resistance is 1.0950
• Primary objective is 1.06
• Below 1.0580 opens 1.0500
• 20 Day VWAP bearish, 5 Day VWAP bearish

(Click on image to enlarge)

GBPUSD Bias: Intraday Bullish Above Bearish below 1.21

• Primary resistance  is 1.21
• Primary objective 1.1840
• Above 1.2165 opens 1.2260
• 20 Day VWAP bearish, 5 Day VWAP bearish

(Click on image to enlarge)

USDJPY Bias: Intraday Bullish above Bearish Below 131.50

• Primary support  is 130
• Primary objective is 134.70
• Below 130.80 opens 130.11
• 20 Day VWAP bullish, 5 Day VWAP bullish

(Click on image to enlarge)

AUDUSD Bias: Intraday Bullish Above Bearish below .7050

• Primary resistance is .7050
• Primary objective is .6750
• Above .7150 opens .7250
• 20 Day VWAP bearish, 5 DayVWAP bullish 

(Click on image to enlarge)

BTCUSD Intraday Bias: Bullish Above Bearish below 21500

• Primary support 21200
• Primary objective is 25000
• Below 20300 opens 19500
• 20 Day VWAP bullish, 5 Day VWAP bearish

(Click on image to enlarge)

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