Market Roundup
- US Pres Obama presses case for Asia trade deal, warns failure would benefit China.
- UK growth slowdown to put economy back in election spotlight.
- RBA Gov Stevens: Low yields forcing more risk on retirement systems.
- Greek PM Tsipras: Working hard for deal but disagreements remain, referendum option open, rules out elections, rules out default, wages-pensions priority
- S.Korea CB Gov Lee: Weak JPY, China economy hitting local economy.
- S.Korea seen stepping up KRW intervention after JPY dips.
- Japan EconMin Amari promises bold fiscal steps in summer to maintain trust in Japan public finances.
- Japan March retail sales -1.9% m/m, -9.7% y/y, -7.3% y/y consensus, larger than expected but coming from very high March '14 base, sales boom then pre-tax hike.
Economic Data Ahead
Key Events Ahead
- N/A Riksbank begins two-day monetary policy meeting, Italy 6-mo BOT auction.
- N/A FOMC begins two-day policy meeting.
- (0400 EDT/0800 GMT) Netherlands E1-1.5 bln 2.75% 2047 DSL auction.
- (0500 EDT/0900 GMT) Greek officials meet Swiss FinMinistry delegation in Athens.
- (0530 EDT/0930 GMT) ECB 7-day refi at fixed 0.05%, E98.5 bln allotment eyed, last bln.
- (1330 EDT/1730 GMT) ECB/Buba Weidmann speech in Essen.
FX Recap
USD/JPY is trading flat. Moreover yen dropped to fresh session lows versus the USD at 118.95 after Japanese retail sales showed a fall for the third consecutive month. Pair opened at 119.02 and made high of 119.18. On the top side, resistance is seen at 119.44, 119.67 (April 24 high). Downside support is seen at 118.75, 118.51 levels.
AUD/USD trading higher by 0.18% at fresh session highs of 0.7873, test fresh five week highs reached at 0.7874 in the preceding session. AUD/USD trading higher this session after RBA Stevens did not comment on the monetary policy today. That fuelled expectations of slight chances of change in the rate decision at its May 5 meeting. Near term support is seen at 0.7860, 0.7800. Immediate resistance is seen at 0.7886 and 0.7907 levels.
NZD/USD opened at 0.7638 and immediately touched 0.7644. Pair trading at 0.7621 levels nearer to low at 0.7618 levels. The pair is likely to be influenced by US dollar moves on release of a set of US macro data later in the day which may provide fresh trading signals. 5, 10 & 20 dma's conflict, suggests neutral momentum studies. Initial support is seen at 0.7590 (April 27 low) and 0.7543, 61.8% Fibonacci retracement. Near term resistance is seen at 0.7645, 0.7665.
GBP/USD is trading in a narrow range. Pair opened at 1.5233 and today's trading range is 1.5237 - 1.5216. In today's trading period, UK will release prelim GDP data Q/Q basis. After the data release market may get further trading directions. Support is seen at 1.5215 and resistance at 1.5260 levels.
EUR/USD partially trimmed previous gains and turned red on Tuesday. It currently trades at 1.0869 levels, down from 1.089 levels hit earlier in the day. To the upside, immediate resistance is eyed at 1.0925 levels, and a break above would target 1.0954 levels and then 1.1034 levels. On the other hand, support is likely to be found at 1.0850 levels, below which losses could be extended to 1.0830 levels and further to 1.0818 levels.
