Market Roundup
- Australian PM flags tax cuts, infrastructure spend in federal budget.
- Australia April NAB Business Conditions, 21, last 14.
- Australia April ANZ Internet & News Paper Job, -0.2%, last 0.0%.
- U.S. oil rises above $70 for first time since Nov. 2014 on Venezuela, Iran worries.
- China's trade imbalance with US a long-term problem, says Central Bank Governor – Caixin.
- BOJ Policy Board March meeting minutes – Some say too early to debate exit.
- For BoJ’s Kuroda, easing only grows harder – Nikkei.
- Italy's 5-Star makes last-ditch overture to League for government.
Economic Data Ahead
- (0430 ET/0830 GMT) Euro zone May Sentix Index, forecast 21.1, last 19.6.
Key Events Ahead
- (0825 ET/1225 GMT) Fed's Bostic speaks at Amelia Island, Florida.
- (1130 ET/1530 GMT) ECB's Praet speaks in Geneva, Switzerland.
- (1400 ET/1800 GMT) Fed's
- Harker speaks at Amelia Island, Florida.
- (1400 ET/1800 GMT) Fed's Barkin speaks at Fairfax, Virginia.
- (1530 ET/1930 GMT) Fed's Kaplan and Evans speak at Amelia Island, Florida.
FX Recap
USD: The dollar index, stood at 92.461, down 0.1 percent but still near Friday's high of 92.908, which was its firmest level since late December. The dollar index has risen for three straight weeks, maintaining its strength after Friday's mixed U.S. data.
EUR/USD: The euro changed hands at $1.1948, not far from Friday's four-month low of $1.1910. Intraday bias remains bearish till the time pair holds key resistance at $1.1992 mark. A consistent close below $1.1950 will drag the parity down towards key supports around $1.1745 levels. Alternatively, reversal from key support will take the parity higher towards key resistances around $1.2032, $1.2240, $1.2345 and $1.2482 marks respectively.
USD/JPY: The yen trades almost flat against U.S. dollar and stabilizes above 109.00 mark. It made intraday high at 109.21 and low at 108.75 levels. A sustained close above 109.05 is required to take the parity higher towards key resistances around 110.02 and 112.96 marks. Alternatively, a daily close below 109.05 will drag the parity down towards key supports around 108.54, 106.71 and 105.32 marks respectively. The yen was marginally higher in early Asia as BOJ released monetary policy meeting minutes.
GBP/USD: The Sterling was trading in narrow range against U.S. dollar. The pair was currently trading around $1.3542 marks. On the top side key resistance was seen at $1.3665 and support was seen at $1.3302 mark. A sustained close above $1.3572 requires for upside rally. Alternatively, current downside movement will take the parity down towards still support around $1.3185 mark.
AUD/USD: The Aussie dollar was down at $0.7512, after bouncing modestly from $0.7560 on Friday. Today Australia released various economic indicators. A break above $0.7580 would be needed to turn around the recent bearish trend. Intraday bias remains slightly bearish till the time pair holds key resistance at $0.7580 levels. Key support levels are seen at $0.7472 levels.
NZD/USD: The kiwi dollar was also struggling at $0.7015 against U.S. dollar. Support lies around $0.6985 and $0.6832 levels respectively with resistance at $0.7120. Intraday bias remains slightly bearish till the time pair holds key resistance at $0.7052 levels. Alternatively, current downside movement will take the parity down toward $0.6832 levels.
Equities Recap
Japan’s Nikkei was trading 0.06 pct lower at 22,460.55 points.
Shanghai composite index to open up 0.1 pct at 3,094.90 points and China's CSI300 index to open up 0.2 pct at 3,782.54 points.
Australia's S&P/ASX 200 index was up 0.43 pct at 6,088.50 points in early trade.
Hong Kong’s Hang seng was trading 0.45 pct higher at 30,061.50 points.
Taiwanese stock was trading around 0.86 percent higher at 10,620.75 points.
India’s NSE Nifty was trading around 0.30 percent higher at 10,650.80 points while BSE Sensex was trading 0.31 points higher at 35,020.95 points.
Seoul stock exchange will remain close in observance of Children’s Day.
Commodities Recap
U.S. oil prices rose above $70 a barrel on Monday for the first time since November 2014 while Brent crude prices climbed to fresh highs, as a deepening economic crisis in Venezuela threatened the country's already tumbling oil supplies. Brent crude oil futures were at $75.71 per barrel, up 84 cents, or 1.12 percent from their last close at 0416 GMT after climbing to $75.89 a barrel earlier in the session, its highest since November 2014. U.S. West Texas Intermediate (WTI) crude futures rose 0.95 percent to trade at $70.39 per barrel, up 66 cents from their last settlement.
Gold prices hit their highest in a week on Monday, buoyed as the dollar slipped after marking its strongest level this year in the previous session. Spot gold had risen 0.3 percent to $1,318.46 per ounce by 0332 GMT, after earlier touching its highest since late-April at $1,318.85. U.S. gold futures for June delivery were up 0.3 percent at $1,319.10 per ounce.
Treasuries Recap
Australian bonds gained on the first trading day of the week Monday as investors moved into safe-haven buying ahead of the retail sales data, where the growth is expected to dip to 0.2 percent m/m in March, down from 0.6 percent m/m increase seen in February. The yield on Australia’s benchmark 10-year Note, which moves inversely to its price, fell over 2 basis points to 2.761 percent, the yield on the long-term 30-year Note dipped 2-1/2 basis points to 3.283 percent and the yield on short-term 2-year slumped nearly 1-1/2 basis points to 2.023 percent by 03:30 GMT.
In the United States, Treasuries were little changed to finish off the week on Friday, holding relatively tight ranges as markets absorbed an April employment report full of mixed signals. U.S. 10-year treasuries yield at 2.955 percent vs U.S. close of 2.944 percent on Friday.
