European Flash PMI’s and Canada Inflation Report

Australia’s ASX 200 index fell by -12.7 points and currently trades at 7,338.80
Japan’s Nikkei 225 index has fallen by -37.31 points and currently trades at 27,494.63
Hong Kong’s Hang Seng index has fallen by -207.23 points and currently trades at 20,679.73
China’s A50 Index has fallen by -31.48 points and currently trades at 13,679.43

UK and Europe:-

UK’s FTSE 100 futures are currently down -6.5 points, the cash market is currently estimated to open at 8,007,81
Euro STOXX 50 futures are currently down -6 points, the cash market is currently estimated to open at 4,265.18
Germany’s DAX futures are currently down -5 points, the cash market is currently estimated to open at 15,472.55

US Futures:-

DJI futures are currently down 130 points
S&P 500 futures are currently down -44.75 points
Nasdaq 100 futures are currently down -17.75 points
The RBA minutes firmly backed a 25bp over a 50bp, which suggests aggressive hikes are most likely in the past-although there is still room for at least two more hikes.

Australia’s private sector contracted for a fifth consecutive month according to the latest PMI report, with services mostly weighing on the broader economy.

Japan’s flash manufacturing PMI contracted at its fastest pace in 30 months.

NZ producer prices were much softer than expected, which plays further into a 50bp RBNZ hike over a 75bp.

CAD/JPY, with a Canadian inflation and retail sales report on tap, CAD pairs are in focus – and one of the more interesting pairs is CAD/JPY. Strong inflation and retail sales should keep bets alive for another BOC hike and likely send CAD pairs higher, and even more so if oil prices remain under pressure.

The pullback found support around the early December lows/late December highs and weekly pivot point, and we’re keen to seek bullish setups with any low-volatility retracement towards the said support zone. 100 is likely to provide resistance along the way, a break above which brings the 100.28 highs and weekly Q into focus.