America’s Roundup: Dollar on defensive after new US-China trade wrinkle, Wall Street falls, Gold jumps over 1%, Oil falls after Trump warns of China trade deal delay-December 4th,2019

Market Roundup

• Trump says China deal could be delayed until election

• S&P 500, Dow on track for worst day in nearly two months

• US Redbook (MoM)0.4%,-0.4% previous

• US Redbook (YoY) 7.9%,4.3% previous

• US Nov ISM NY Business Conditions  50.4%,44.7% forecast, 47.7% previous

• US Nov ISM-New York Index    874.5, 874.3 previous

• New Zealand GlobalDairyTrade Price Index-0.5%,0.5% forecast, 1.7% previous

Looking Ahead – Economic Data (GMT)

• 21:30 Australia Nov AIG Services Index  54.2 previous

• 22:00 Australia Services PMI 49.5 forecast,  50.1 previous

• 23:00 US Total Vehicle Sales 16.80M, 16.60M previous

• 00:00 New Zealand ANZ Commodity Price Index (MoM) 1.2% previous                  

• 00:30 Australia GDP (QoQ) (Q3) 0.5%,0.5% previous       

• 00:30 Australia GDP (YoY) (Q3)   1.7%,1.4% previous        

• 00:30 Australia GDP Capital Expenditure (Q3) -1.7% previous      

• 00:30 Australia GDP Chain Price Index (Q3) 1.2% previous            

• 00:30 Australia GDP Final Consumption (Q3) 1.0% previous         

• 00:30 japan Nov  Services PMI   50.4, 49.7 previous

• 01:45 China Nov Caixin Services PMI  51.2, 51.1 previous

• 01:45 China Chinese Composite PMI 52.0 previous                                                                                         

Looking Ahead – Events, Other Releases (GMT)

• No Major events scheduled

Currency Summaries

EUR/USD: The euro strengthened against the dollar on Tuesday, as disappointing manufacturing data and signs of new fronts in U.S. President Donald Trump’s trade war weighed on greenback.Moves in currency markets were broadly contained, however, with volatility remaining low and investors not appearing to take much fright at news of U.S. tariffs on imports of metals from Argentina and Brazil and the threat of more tariffs on a range of European goods. Immediate resistance can be seen at 1.1095 (Nov 29th high), an upside break can trigger rise towards 1.1156 (200 DMA).On the downside, immediate support is seen at 1.1040 (21 DMA), a break below could take the pair towards 1.0980 (29th Nov low).

GBP/USD: Sterling edged higher against greenback on Tuesday, against the backdrop of broad-based dollar weakness and after a new poll showed the ruling Conservative Party widening its lead before next week’s election.Prime Minister Boris Johnson’s Conservatives led the main opposition Labour party by 12 points, a survey by Kantar showed on Tuesday, before a parliamentary election on Dec. 12. The pound rose as much as 0.5% to $1.3010, its highest level in six weeks and within a whisker of reaching its highest since May. Immediate resistance can be seen at 1.3013 (Daily high), an upside break can trigger rise towards 1.3081 (May 8th high).On the downside, immediate support is seen at 1.2819 (Nov 27th low), a break below could take the pair towards 1.2756 (300 DMA).

USD/CAD: The Canadian dollar edged higher against the greenback on Tuesday, as investors' worries about prospects for a trade deal between the United States and China were offset by bets that the Bank of Canada would leave interest rates on hold this week.Money markets see almost no chance of an interest rate cut by the central bank on Wednesday, after Governor Stephen Poloz said nearly two weeks ago that monetary conditions were about right given the current economic situation. At (2044 GMT), the Canadian dollar was trading 0.1% higher at 1.3294 to the greenback. The currency traded in a range of 1.3283 to 1.3321. Immediate resistance can be seen at 1.3330 (Nov 20th high), an upside break can trigger rise towards 1.3400 (Psychological level).On the downside, immediate support is seen at 1.3281 (11 DMA), a break below could take the pair towards 1.3218 (50 DMA).

USD/JPY: The dollar weakened against the Japanese yen on Tuesday, as nagging fears the Sino-U.S. trade war will drag on increased demand for safe haven assets. U.S. President Donald Trump said a trade deal with China might have to wait until after the 2020 U.S. presidential election.The surprise statement hit the dollar broadly as investors dumped the currency, which has tended to rise when optimism over a trade deal has grown. Market participants have long been waiting for a final trade deal, especially as both countries appeared to be nearing a preliminary one. Strong resistance can be seen at 107.92 (Dec 2nd High), an upside break can trigger rise towards 108.00 (Psychological level).On the downside, immediate support is seen at 108.45 (50 DMA), a break below could take the pair towards 107.82 (100 DMA).

Equities Recap

European shares bounced back on Tuesday from their sharpest decline in two months in the  previous session, boosted by technology stocks, but gains were capped as investors grappled with prospects of fresh global trade disputes.                                  

The UK's benchmark FTSE 100 closed up by 0.32 percent, Germany's Dax ended up  by 0.19 percent, and France’s CAC finished the down by 1.03 percent.

Wall Street set course for its third consecutive sell-off on Tuesday as investor optimism over a potential near-term respite from the U.S.-China trade war evaporated following commentary from President Donald Trump and Commerce Secretary Wilbur Ross.

Dow Jones closed down by 1.01 percent, S&P 500 ended down 0.66 percent, Nasdaq finished the day down by 0.55 percent.

Treasuries Recap

U.S. Treasury yields fell on Tuesday, as tough trade talk from U.S. President Donald Trump and other world leaders triggered a flight to safety among investors.

The benchmark 10-year yield was 11 basis points lower at 1.728% on reduced investor appetite for risk, set for its largest daily decline since Aug. 8.

Commodities Recap

Gold jumped more than 1% on Tuesday on fading optimism surrounding a U.S.-China trade deal after U.S. President Donald Trump said talks could extend until after the presidential elections in November 2020.

Spot gold gained 1.1% to $1,478.38 per ounce as of 02:32 p.m. ET (1932 GMT), after touching $1,481.80, its highest since Nov. 7.U.S. gold futures settled 1% higher at $1,484.40.

Oil prices slipped on Tuesday after U.S. President Donald Trump said a trade deal with China could be delayed until after the next U.S. presidential election, though losses were capped by an expected deepening of output cuts by OPEC and its allies.

Brent futures   fell 42 cents to $60.50 a barrel by 1448 GMT. U.S. West Texas Intermediate (WTI) crude  was down 25 cents at $55.71.                            

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