Market Roundup
- China Feb HSBC flash mfg PMI 50.1, Dec final 49.7, export orders decline.
- Australia intends to charge fees from foreigners buying real estate.
- Australia Q4 construction work done -0.2% q/q, -1.2% expected.
- Australia Q4 wage price index total hourly pay +0.6% q/q, +2.5% y/y, expected.
- Fonterra likely to lift dairy payout as global prices improve.
Economic Data Ahead
- (0030 ET/0530 GMT) Norway Q1 consumer confidence index; previous 15.4.
- (0200 ET/0700 GMT) Switzerland Jan UBS consumption indicator; previous 1.42.
- (0245 ET/0745 GMT) France Feb consumer confidence index, 91 consensus; previous 90.
- (0400 ET/0900 GMT) Italy Jan non-EU trade balance flash; previous bln surplus.
- (0400 ET/0900 GMT) Norway Dec labor force survey unemployment, 3.7% consensus; previous 3.7%.
- (1000 ET/1500 GMT) US Jan new home sales, 470k consensus; previous 480k, +11.6% m/m.
Key Events Ahead
- N/A Italy E7 bln 6-month BOT, Sweden Treasury bill auctions.
- (0330 ET/0830 GMT) Riksbank February policy meeting minutes.
- (0430 ET/0930 GMT) ECB 91-refi, E32.5 bln allotment consensus, previous bln.
- (0500 ET/1000 GMT) BoE Gov Carney, DepGov Broadbent, others present research agenda.
- (0530 ET/1030 GMT) Germany E4 bln 0% 2020 Bobl auction.
- (0530 ET/1030 GMT) Portugal -1.75 bln 2.875% 2025 OT auction.
- (0635 ET/1135 GMT) BoE Bailey speech at London business forum.
- (0900 ET/1400 GMT) BoE Hauser speech at London conference.
- (0900 ET/1400 GMT) Norges Bank Gov Olsen lecture at University of Oslo.
- (1000 ET/1500 GMT) FOMC Chair Yellen semi-annual House testimony.
- (1130 ET/1630 GMT) ECB Pres Draghi parliamentary testimony in Brussels. See North American Open for a detailed listing of US/NorAm releases, events.
FX Recap
EUR/USD opened in Asia at 1.1340 and continued its choppy trade on Wednesday in a tight range 1.1287-1.1357. It was boosted by Eurozone's decision to grant four month extension to Greece. The pair sees strong resistance at 1.4435 and major support at 1.1096.
USD/JPY moved down on Wednesday after Federal Reserve Chair Janet Yellen did not indicate anything about hiking interest rates in her testimony. It is trading around 119.67 having posted a 12-day high of 119.84 on Tuesday in a reaction to the early headlines from the testimony. Pair's immediate resistance is located at 118.92 levels and above which gains could be extended to 119.19 levels. On the downside, it is likely to find support at 118.53 levels, and then at 118.23 levels.
AUD/USD opened in Asia at 0.7830 and continued moving upwards and is currently at 0.7888. it has been boosted by strong results for China's manufacturing sector. It sees strong resistance at 0.78807 and only a convincing break could push the pair to 0.7959. on the downside, support is located at 0.7783.
NZD/USD closed in New York at 0.7491 and has broken above 0.7532 handle. Asia saw NZD/USD rise from 0.7476 to 0.7541 helped by strong China PMI data and dovish Yellen's testimony. If the pair sustains above 0.7532, its move towards 0.7616 cannot be ruled out. On the flipside, support is seen at 0.7447 levels.
USD/CNY: China's yuan moved down against the dollar on Wednesday after the PBOC set a weaker midpoint at 6.1384 per dollar prior to market open, despite stronger-than-expected PMI data in February. The spot market opened at 6.2570 per dollar and was trading at 6.2589 near midday.
