Market Roundup
- China Caixin April Services PMI Falls to 51.8 (March 52.2).
- China Caixin April Services PMI Employment Component Returns to Expansion at 50.9 (March 48.9).
- Australia March Retail Sales 0.4% M/M S/Adj (Reuters Poll +0.3%).
- Australia Q1 Chain Volume Retail Sales +0.5% Q/Q S/Adj (Reuters Poll +0.7%).
- Australia March Deficit Goods/Services A2.163bln, S/Adj (Poll: Deficit A2.9bln).
- Australia March Goods/Services Exports +4% M/M, Seasonally Adjusted.
- Australia March Goods/Services Imports +1% M/M, Seasonally Adjusted.
- PBOC Sets Yuan Mid-Point at 6.5128 / Dlr Vs Last Close 6.5016.
- Philippines Says April Inflation at 1.1% Yr/Yr (Reuters Poll: 1.2%).
- Philippines Says April Core Inflation at 1.5% Yr/Yr.
- Philippines Says April Inflation at 0.2% Mth/Mth.
- China's Q1 Gold Consumption -3.91% Y/Y to 318.28 Tonnes - China Gold Association.
- Moody's - Budget Constraints Leave Australian Public Finances Vulnerable.
- Taiwan April CPI +1.88% Y/Y (Reuters Poll +1.50%).
- Taiwan April WPI -4.23% Y/Y.
- Taiwan April Core CPI +0.92% Y/Y.
- Taiwan April Seasonally Adjusted CPI +0.27% M/M.
Economic Data Ahead
- (0315 ET/0715 GMT) South Africa standard Bank PMI, previous 47.0.
- (0430 ET/0830 GMT) UK Service PMI, previous 53.7, consensus 53.5.
- (0430 ET/0830 GMT) Hong kong retail sales, previous -20.6, consensus -9.0.
- (0730 ET/1130 GMT) US Challenger lay off, previous 48.2K.
Key Events Ahead
- (0430 ET/0830 GMT) SPAIN 10Y 1.950% 30/04/26 >1.5BN.
- (0430 ET/0830 GMT) SPAIN 15Y 1.950% 30/07/30.
- (0430 ET/0830 GMT) SPAIN 25Y 4.900% 30/07/40 >2.5BN.
- (0430 ET/0830 GMT) SPAIN 5 YI 0.300% 30/11/21 1.5-2.0B.
- (0530 ET/0930 GMT) UK 10Y 2.500B 1.500% 22/07/26.
FX Recap
USD: The dollar edged up to 107.11 yen, pulling away from an 18-month trough of 105.55 set on Tuesday.
EUR/USD: The euro eased to $1.1488 against US dollar, continuing to consolidate after a run-up to an eight-month peak of $1.1616 earlier in the week. Intraday bias remains bullish till the time pair holds immediate support at $1.1466. A sustained break above it will drag the parity up towards key resistances at $1.1529/$1.1622/$1.1785 and $1.1833 marks. Key supports are seen at $1.1423/$1.1314/$1.1215.
USD/JPY: The yen showed signs of fatigue early on Thursday having taken a step back from recent peaks, while the greenback firmed broadly on some optimism the U.S. economy would bounce back after nearly stalling in the first quarter. Intraday bias remains bullish till the time pair holds immediate support at 106.15 levels. A daily close below 106.15 will drag the parity down towards key supports at 105.71, 105.45 and 104.55 levels respectively. Alternatively, reversal from key support will take the parity higher towards key resistances at 107.87, 109.49, 111.23, 112.60 and 113.42 levels respectively. Japanese banks will be closed in observance of Children's Day.
GBP/USD: Sterling fell 0.35 percent to $1.4484, almost three U.S. cents away from the four-month high of $1.4770 it had hit on Tuesday before the data. It was also 0.2 percent lower against the euro at 79.25 pence per euro. Pound erases previous loss against the US dollar on Thursday and supported around $1.4526 marks. A daily close above $1.46 will take the parity up towards key resistances at $1.4769 levels. Alternatively, reversal from key resistance will drag the parity down at $1.4473 marks.
AUD/USD: The Australian dollar edged up to $0.7489, from $0.7460 early and away from a seven-week trough of $0.7447 touched on Wednesday. Resistance was found near $0.7515 with support at $0.7455. Today Australia released retails sales data with positive numbers at 0.4% m/m vs 0.0% m/m previous release. On the other side, Australia’s new home sales picked up at the strongest pace since 2010 to 8.9% month-on-month vs -5.3% month-on-month previous releases. In addition, Australia’s trade deficit contracted from a revised $3.04 billion in February to $2.16 billion the following month.
NZD/USD: The New Zealand dollar rose to $0.6908 from a low of $0.6859 touched on Wednesday. Support was found at $0.6773. Resistance was seen at around $0.7054.
Equities Recap
Japanese banks will be closed in observance of Children's Day.
Hong Kong's benchmark Hang Seng index was trading 0.48% lower at 20,429.00 points on Thursday morning in Asia, while mainland China's Shanghai Composite index fell 0.19% to 2,985.45 points.
South Korea's Kospi index dropped 0.49% to 1,976.71 points.
Australia's S&P/ASX 200 index was trading 0.12% lower at 5,263 points.
New Zealand’s S&P/NZX 50 index was trading 0.49% higher at 6,858.06 in Wellington.
Commodities Recap
Oil prices jumped by more than one percent in early trading on Thursday as a huge wildfire in Canada disrupted its oil sands production, while escalating fighting in Libya threatened the North African nation's output. International benchmark Brent crude futures were trading at $45.31 per barrel at 0031 GMT, up 69 cents or 1.6 percent from their last close. U.S. West Texas Intermediate (WTI) crude futures rose 75 cents, or 1.7 percent, to $44.53.
Gold firmed after three days of losses on Thursday on weaker global equities, but held below a 15-month peak as the dollar rebounded against the yen after a recent slump. Spot gold steadied at $1,280.20 an ounce by 0228 GMT, after losing 1.1 percent in the past three sessions. U.S. gold futures GCcv1 rose 0.6 percent to $1,282.60.
Treasuries Recap
New Zealand government bonds gained, sending yields 8 basis points lower at the long end of the curve.
Australian government bond futures rose to two-month highs, with the three-year bond contract up 3 ticks at 98.310.
